Jakarta. Indonesia's state-owned construction companies, Adhi Karya and Construction Engineering Company (PTPP), have secured a significant railway track project valued at Rp 8.1 trillion ($540.7 million) in the Philippines.

The contract agreement for the north-south commuter railway, spanning 7 kilometers, was signed at the Malacanan Palace in Manila on Thursday, PTPP's Chief Executive Officer, Novel Arsyad, confirmed the development in a statement.

The project comprises two parts: the construction of 1.2 kilometers of viaduct along with an elevated station, expected to be completed within four years, and 5.8 kilometers of railway with two elevated stations in the Bicutan and Sucat areas, scheduled to be concluded in five and a half years.

To carry out the project, PTPP and Adhi Karya have formed a consortium.

"We thank the Philippine government for having trust in us and allowing us to contribute to the construction of this Rp 8 trillion project,” Novel said.

Earlier this week, PTPP announced that it secured new contracts worth Rp 11.6 trillion in the first half of the year, with nearly half of the contracts originating from Indonesian government projects.

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