Indonesia sends envoys to woo Japan, China in renewed push for fast train
JAKARTA - Indonesia has sent senior officials to China and Japan to court Asia’s two biggest economies as Jakarta renews its efforts to build a multi-billion dollar railway linking two major cities, a government official said on Tuesday.
Earlier this month, Indonesia abruptly changed plans to build a high-speed rail line between the capital, Jakarta, and textile hub Bandung, opting instead for a medium-speed train for the 150 km (95 mile) journey.
Tuesday’s announcement that representatives had been sent to Japan and China suggested the project had gained renewed impetus, although possibly with a compromise between the original high-speed plan and the medium-speed alternative.
“What’s clear is that the speed of the train will be lower than initially planned,” said Cabinet Secretary Pramono Anung.
The high-profile project has pitted Japan and China - two major investors in Southeast Asia’s biggest economy - against each other, with both lobbying hard to win the $5 billion contract. Analysts say the winner of this bid could be a frontrunner for future rail projects in the region, including one linking Kuala Lumpur and Singapore.
Government sources say Indonesia is inclined to pick China’s proposal after President Joko Widodo said the project should not require a government guarantee and not use the state budget.
State-owned enterprises minister Rini Soemarno has said Japan must drop its requirement for government guarantees if it wants to stay in the race.
Anung said National Planning Minister Sofyan Djalil had been sent to Japan, but declined to say who had been sent to China.
Indonesia is expected to announce the winner of the rail project in the coming days.
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