Japan, China in final stage of Indonesia train bid
7:30 pm, August 24, 2015
Jiji Press JAKARTA (Jiji Press) — Japan and China are in the final stage of a competition for an order to build a high-speed railway system on the Indonesian island of Java, with the Indonesian government expected to pick the winner later this month.
While Japan has been stressing the safety of its Shinkansen bullet train technology, China has called attention to the short construction period for the high-speed railway system proposed by the country.
The planned railway will connect Jakarta with Bandung in the West Java Province over a distance of about 140 kilometers. Indonesia plans to extend the line to Surabaya in the East Java Province, the country’s second-largest city, in the future.
Japan initially had an edge in the competition, by starting to sell its Shinkansen technology when Susilo Bambang Yudhoyono was still president of Indonesia.
But the administration of Indonesian President Joko Widodo, which came to power last October, initially indicated a plan to cancel the railway project because of its policy to prioritize infrastructure development in areas other than Java.
But the project was revived after Joko visited China in March this year.
China decided to carry out a feasibility study for the Jakarta-Bandung railway project and established a framework in April for cooperation among China’s state-run companies.
China quickly took the lead in the competition, apparently because the country made a fund procurement proposal that does not require a governmental guarantee.
With a sense of crisis, Japan presented to Joko in July a new proposal that would bring forward the start of construction to 2016 from 2019.
Meanwhile, China stressed that the train system proposed by the country would need only three years for completion, shorter than Japan’s plan.
The project proposed by Japan would cost an estimated some $4.5 billion, with the country offering the use of low-interest yen loans.
Although the China-proposed project is expected to cost over $5.5 billion, its completion is scheduled for 2018, before the end of Joko’s term as president, apparently reflecting China’s aim of meeting the Joko administration’s desire for visible achievements.
While some local government leaders including the governor of West Java support the Shinkansen project, Rini Soemarno, minister of state-owned enterprises and a close aide to Joko, is said to support the Chinese plan.
Japan, China in final stage of Indonesia train bid - The Japan News
Whoever wins no hard feeling.