The Korea Railroad Research Institute has signed a memorandum of agreement with the Indonesian government to oversee construction of a 25 km-long rail link worth US$2 billion between Soekarno-Hatta International Airport and downtown Jakarta.

KRRI President Choi Sung-kyu on Tuesday said he met Suryo Bambang Sulisto, chairman of the Indonesian Chamber of Commerce and Industry, last Friday and Minister of Energy and Mineral Resources Darwin Zahedy Saleh on Monday and talked with them about ways to modernize Indonesia's railroads and signed the memorandum.

Sulisto was in Seoul last month as a member of a delegation negotiating an inter-governmental arms deal.  

The rail link agreement also includes the Indonesian state-run rolling stock company, Choi added.

But a spokesman with the Ministry of Land, Transport and Maritime Affairs said the project has not been formally reported to the ministry.