Indonesia asks Japan to work on Jakarta-Surabaya train project

[ahojunk]

IMHO, this is a very good Indonesian strategy. Don't get tied down by one vendor.
Let Japan compete with China and see who is better.
Indonesia is just taking care of her own interests.

========
| Sat Oct 8, 2016 | 9:52am EDT
Indonesia asks Japan to work on Jakarta-Surabaya train project
By Cindy Silviana and Eveline Danubrata | JAKARTA

Indonesia has invited Japan to submit proposals to work on a railway line connecting Jakarta to its second-biggest city Surabaya, the transport minister told Reuters on Saturday.

The project aims to slash journey times by more than half to around five hours on the roughly 600-km (400-mile) route, Budi Karya Sumadi said in his first interview with foreign media since taking office in late July.

Japan could provide a loan for the project, said Sumadi. Construction could be carried out through a partnership between Japanese and Indonesian companies.

"We are giving the priority to Japan," Sumadi said at his house in Jakarta, adding that the project could include building a new line, upgrading existing tracks and supplying the rolling stock.

Japan has historically been one of Indonesia's biggest investors, but was dealt a blow last year when the Southeast Asian country awarded China a high-speed train project linking the capital with the city of Bandung.

At an estimated cost of $5.5 billion, the line was seen as a coup for China, which is vying for influence in the region under its "One Belt, One Road" policy and has ambitions to be a global train supplier.

Analysts said the swing factor at that time was China's willingness to forego a sovereign guarantee by the Indonesian government, which was requested by Japan to reduce the risk of taking on the project.

Indonesian Maritime Coordinating Minister Luhut Pandjaitan was in Tokyo earlier this week to discuss topics including the Jakarta-Surabaya project with Japan's Prime Minister Shinzo Abe, according to a statement from the Indonesian government.

The project is likely to cost less than the Jakarta-Bandung rail awarded to China as the speed of the trains is slower and most of the land has been secured, Sumadi said.

Indonesia is unlikely to give any sovereign guarantee for this project either, Sumadi said. "We have had a lot of cooperation with foreign investors, and we've been delivering. There's actually no need for a guarantee."


(Reporting by Cindy Silviana and Eveline Danubrata; Editing by Andrew Roche)

 

[CountStrike]

SATURDAY, 08 OCTOBER, 2016 | 10:38 WIB
Luhut Offers Semi High-speed Railway Project to Japan
Zoom Out Zoom In Normal

TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan hopes the Japanese Government is willing to develop semi high-speed railway project that connect Jakarta and Surabaya.

"We have sent an official letter. I personally believe that the Japanese technology is the right one for this project,” Luhut said on Friday (7/10).

Luhut added that he has also had a meeting with Japanese Prime Minister Shinzo Abe to discuss a number of issues about investment in Indonesia, including this semi high-speed railway project.

"The train is a semi high-speed train with the speed of 180-200 km per hour,” Luhut said, adding that with this train, it is expected that it would only take 3.5 hours to get to Surabaya from Jakarta.

AVIT HIDAYAT

 

[initial_d]

i hope japan can give us better deal than the last time. if not, the chinese gonna beat them in this project also

 

[pr1v4t33r]

i hope japan can give us better deal than the last time. if not, the chinese gonna beat them in this project also

Indonesia is unlikely to give any sovereign guarantee for this project either, Sumadi said. "We have had a lot of cooperation with foreign investors, and we've been delivering. There's actually no need for a guarantee."

This is the meat. If Japan can agree to this term, they will bag this project.

 

[Nike]

image of modern Jakarta, homes for more than 10 millions people, not including the large conglomeration of almost 32 millions people surrounding Jakarta Greater Area

Jakarta is the capital city of the Republic of Indonesia, a country composed of more than 13,000 islands with a population of over 200 million. Comprising more than 300 ethnic groups speaking 200 different languages, the Indonesia population exhibits marked diversity in its linguistic, culture, and religious traditions. As the Capital City, Jakarta is a melting pot of representatives from each of these ethnic groups and truly a "meeting point" of representatives from through out the archipelago.

Jakarta is a special territory enjoying the status of a province, consisting of Greater Jakarta, covering of 637.44 square km area. Located on the northern coast of West Java, it is the center of government, commerce and industry and has an extensive communications network with the rest of the country and the outside world. Strategically positioned in the archipelago, the city is also the principal gateway to the rest of Indonesia.

From the Capital City, sophisticated land, air, and sea transport is available to the rest of the country and beyond. Over the last several decades, Jakarta has proudly developed into one of Asia's most prominent metropolitan centers. With a current population of over nine million people, Jakarta has undergone dramatic growth especially over the last few years. Jakarta (also DKI Jakarta) is the capital and largest city of Indonesia. It also has a greater population than any other city in Southeast Asia. It was formerly known as Sunda Kelapa (397-1527), Jayakarta (1527-1619), Batavia (1619-1942), and Djakarta (1942-1972). Located on the northwest coast of Java, it has an area of 661.52 square kilometres (255.41 sq mi) and a population of 8,489,910. Jakarta is the country's economic, cultural and political center. Jakarta is the twelfth-largest city in the world; the metropolitan area, called Jabodetabek, is the sixth-largest in the world.

The economy depends heavily on financial service, trading, and manufacturing. Financial service constituted 23% of Jakarta's GDP in 1989. The manufacturing industry is well-diversified with significant electronics, automotive, chemicals, mechanical engineering and biomedical sciences manufacturing sectors. Jakarta is the most luxurious and busiest city in Indonesia. In 2009, 13% of the population had an income per capita in excess of US$ 10,000 (Rp 108,000,000).

image of Surabaya, the second largest City in Indonesia, home for more than 3 millions people and more than 7 million people in greater Surabaya urban area

Surabaya at nights

The Indonesian port city of Surabaya has spent much of its modern history overshadowed by the country's vast capital, Jakarta. However, in the infrastructure problems and dysfunctional politics that increasingly beset its larger rival, Surabaya senses an opportunity to grab its share of the limelight and a greater slice of foreign direct investment (FDI). The local government touts a superior business environment and well-developed trade infrastructure. Companies appear to be responding.

Lying on the northern coast of the province of East Java, Surabaya was once one of Asia's great port cities. Under Dutch control in the 19th century, it served as the commercial centre for the burgeoning sugar industry of East Java. Sugar was milled and exported from the city's port to markets in Europe and North America. However, the collapse of the sugar trade in the 1930s sent Surabaya into a period of prolonged stagnation. Having competed for the mantle of Indonesia's premier metropolis, it has spent most of the post-independence period in relative obscurity, as Jakarta industrialised rapidly under the New Order regime.

Problems in the capital

However, Surabaya's prospects are brightening again. This is partly a consequence of the problems faced by Jakarta. Although the capital remains the mainstay of the Indonesian economy, it is struggling to manage a sprawling population of 10m. Creaking infrastructure makes travel difficult and black-outs are common. Floods in February brought the city to a standstill, while the municipal government argued with a utility company over responsibility. Indonesia's president, Joko Widodo, has broken with tradition by choosing the presidential palace in the nearby city of Bogor as his primary place of residence, in a none-too-subtle swipe at Jakarta's working environment.

The capital's politics are also turning inwards. The city's government has yet to pass its budget for 2015 amid protracted wrangling, despite the urgent need to address infrastructure problems. Meanwhile, annual negotiations with Jakarta's trade unions over minimum wages, which are overseen by the local government, have become increasingly politicised. They have increased by an average of more than 20% a year over the past three years. The governor of Jakarta, Basuki Tjahaja Purnama (known as Ahok), told businesses during the last round of negotiations to leave the city if they believed that wages were too high.

An opportunity for others

Surabaya is well placed to take advantage of Jakarta's problems. Its population is a more manageable 3.6m and transport and communication links are being upgraded. Access to Surabaya's strategically located port is being widened and deepened, while an integrated industrial and deep-water port facility in the nearby city of Gresik is under construction. A second terminal was added to Surabaya's airport in 2014 and two further runways are planned within five years. Surabaya and East Java, more generally, are less prone to flooding than Jakarta and investors are promised reliable power supply.

The local authorities also want to improve the challenging business environment. Surabaya's mayor, Tri Rismaharini, has gained an international reputation through her efforts to shake up the sleepy local bureaucracy and green the city. The East Java government was the first in Indonesia to develop a "one-stop" licensing service, an innovation that is now being rolled out nationwide. It claims that foreign-invested firms can be approved within 17 days; this compares with over 50 days in Jakarta, according to the World Bank.

Investors responding

Foreign companies have been giving more serious consideration to regions outside Jakarta. Figures from the Indonesia Investment Co-ordinating Board indicate that Jakarta attracted around 40% of national FDI in 2010. That proportion has slipped steadily since, and stood at only 16% in 2014. The main beneficiaries have been provinces elsewhere in Java, including West Java, East Java and Banten.

The East Java government claims that it could achieve more if national investment regulations were loosened. Regional administrations do not have the authority to set favourable tax rates or offer significant investment incentives. They also remain boxed in by often poorly drawn-up regulations at national level. This contrasts with the autonomy granted by the Chinese government to the special economic zones it established in the 1980s to cultivate FDI in manufacturing.

Nevertheless, the trend towards greater geographical diversification of FDI in Indonesia will continue. Not only do regional cities often offer a better investment environment than traffic-clogged Jakarta, but their rapid economic growth means that they represent sizeable markets in their own right. Although it may be some time before Surabaya reclaims its historic position, more is likely to be heard from it in future.

 

[pr1v4t33r]

One question remain though, If we opt for Medium speed train for Jakarta-Surabaya track then Jakarta-Bandung bullet train project will be less attractive/profitable in the long run.

 

[Nike]

Jakarta-Surabaya rapid train to use existing track
Selasa, 11 Oktober 2016 17:01 WIB | 342 Views

Senior Minister Luhut Binsar Pandjaitan. (ANTARA/M. Agung Rajasa/P003)

Jakarta (ANTARA News) - Coordinating Minister for Maritime Affairs and Acting Minister of Energy and Mineral Resources Luhut Binsar Panjaitan has said the development of the Jakarta-Surabaya rapid train will use the existing track.

"For the rapid train, we will use the existing network. We will strengthen the bearing pads and make the crossings run over or under, so there will not be any gates that can harm anyone," stated the minister at the State Palace complex in Jakarta, Tuesday.

He mentioned that there are a thousand crossing points on the Jakarta-Surabaya railway network.

The minister hoped the project survey, due to be conducted in partnership with Japanese representatives, could be done in the first quarter of 2017.

"The Jakarta-Surabaya rapid train, which runs up to 200 kilometers per hour, will have an immense impact on the nations economy," he remarked.

The projects investment value is considerably large, reaching US$2.5 to 3 million.

Minister Panjaitan explained that the agenda of his meeting with President Joko Widodo today includes reporting the results of his trip to Japan, which was a follow-up to the presidents agreement with Japans Prime Minister Shinzo Abe.

"I met the prime minister along with his ministers and other officials," he reiterated.

He pointed out that the notions agreed upon by both country leaders included the Maritime Economic Cooperation, which was initiated last year.

"We are now pursuing cooperation in a number of locations, including oil explorations in Natuna, economic development in Sabang, Patimbang harbor development in West Java, and farming advances in Merauke, Papua," he remarked.

He also mentioned cooperation in the education sector, where Japan will help with vocational training, while sending their professors to a number of technology corporations in Indonesia.

"Partnerships in strategic industries are also included, which covers the rapid train project to be discussed with the minister of state-owned enterprises," he continued.

He added that from the string of agreements, those that will potentially be carried out during the first quarter of 2017 include the development of Patimbang Harbor.

"Then, we will proceed with a joint survey for the Jakarta-Surabaya rapid train," he concluded.

(Reported by Agus Salim/Uu.KR-ARC/INE/KR-BSR/A014)

http://www.antaranews.com/en/news/107150/jakarta-surabaya-rapid-train-to-use-existing-track

 

[CountStrike]

Indonesia-Japan to conduct joint survey on medium-speed railway project

• 
  Ayomi Amindoni
  The Jakarta Post
  

Jakarta | Tue, October 11 2016 | 04:35 pm

Observe attentively – Coordinating Maritime Affairs Luhut Pandjaitan (third from right) listens attentively to inquiries raised by lawmakers during a work meeting at the House of Representatives in Jakarta on Sept.22. (Antara/Puspa Perwitasari)(Antara/Puspa Perwitasari)
Topics

The Indonesian and Japanese governments will conduct a joint survey on the construction of a medium-speed railway connecting Jakarta and Surabaya, East Java, a senior minister has said.

Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan said it was expected the construction of the railway project, which would require an investment of between US$2.5 billion - $3 billion, could begin in the first quarter of 2017.

“The medium-speed railway will have a tremendous impact on our economy. The survey is expected to be completed in the first quarter of 2017, or the second quarter at the latest,” said Luhut on the construction project officially offered to the Japanese government during his visit to Tokyo, Japan, last week.

He was speaking after his meeting with President Joko “Jokowi” Widodo at the State Palace in Jakarta on Tuesday.

Luhut said the project was part of the government’s efforts to revitalize the existing Jakarta-Surabaya railway, which would be developed into a medium-speed railway with a capacity of 200 km per hour. The revitalization project included the elimination of 1,000 level crossings along the 725 km-long railway.

Transportation Minister Budi Karya Sumadi said it was expected that the medium-speed train could reduce travel times between Jakarta and Surabaya to only six hours from 11 hours. (ebf)

 

[Echo_419]

image of modern Jakarta, homes for more than 10 millions people, not including the large conglomeration of almost 32 millions people surrounding Jakarta Greater Area

Jakarta is the capital city of the Republic of Indonesia, a country composed of more than 13,000 islands with a population of over 200 million. Comprising more than 300 ethnic groups speaking 200 different languages, the Indonesia population exhibits marked diversity in its linguistic, culture, and religious traditions. As the Capital City, Jakarta is a melting pot of representatives from each of these ethnic groups and truly a "meeting point" of representatives from through out the archipelago.

Jakarta is a special territory enjoying the status of a province, consisting of Greater Jakarta, covering of 637.44 square km area. Located on the northern coast of West Java, it is the center of government, commerce and industry and has an extensive communications network with the rest of the country and the outside world. Strategically positioned in the archipelago, the city is also the principal gateway to the rest of Indonesia.

From the Capital City, sophisticated land, air, and sea transport is available to the rest of the country and beyond. Over the last several decades, Jakarta has proudly developed into one of Asia's most prominent metropolitan centers. With a current population of over nine million people, Jakarta has undergone dramatic growth especially over the last few years. Jakarta (also DKI Jakarta) is the capital and largest city of Indonesia. It also has a greater population than any other city in Southeast Asia. It was formerly known as Sunda Kelapa (397-1527), Jayakarta (1527-1619), Batavia (1619-1942), and Djakarta (1942-1972). Located on the northwest coast of Java, it has an area of 661.52 square kilometres (255.41 sq mi) and a population of 8,489,910. Jakarta is the country's economic, cultural and political center. Jakarta is the twelfth-largest city in the world; the metropolitan area, called Jabodetabek, is the sixth-largest in the world.

The economy depends heavily on financial service, trading, and manufacturing. Financial service constituted 23% of Jakarta's GDP in 1989. The manufacturing industry is well-diversified with significant electronics, automotive, chemicals, mechanical engineering and biomedical sciences manufacturing sectors. Jakarta is the most luxurious and busiest city in Indonesia. In 2009, 13% of the population had an income per capita in excess of US$ 10,000 (Rp 108,000,000).

image of Surabaya, the second largest City in Indonesia, home for more than 3 millions people and more than 7 million people in greater Surabaya urban area

Surabaya at nights

The Indonesian port city of Surabaya has spent much of its modern history overshadowed by the country's vast capital, Jakarta. However, in the infrastructure problems and dysfunctional politics that increasingly beset its larger rival, Surabaya senses an opportunity to grab its share of the limelight and a greater slice of foreign direct investment (FDI). The local government touts a superior business environment and well-developed trade infrastructure. Companies appear to be responding.

Lying on the northern coast of the province of East Java, Surabaya was once one of Asia's great port cities. Under Dutch control in the 19th century, it served as the commercial centre for the burgeoning sugar industry of East Java. Sugar was milled and exported from the city's port to markets in Europe and North America. However, the collapse of the sugar trade in the 1930s sent Surabaya into a period of prolonged stagnation. Having competed for the mantle of Indonesia's premier metropolis, it has spent most of the post-independence period in relative obscurity, as Jakarta industrialised rapidly under the New Order regime.

Problems in the capital

However, Surabaya's prospects are brightening again. This is partly a consequence of the problems faced by Jakarta. Although the capital remains the mainstay of the Indonesian economy, it is struggling to manage a sprawling population of 10m. Creaking infrastructure makes travel difficult and black-outs are common. Floods in February brought the city to a standstill, while the municipal government argued with a utility company over responsibility. Indonesia's president, Joko Widodo, has broken with tradition by choosing the presidential palace in the nearby city of Bogor as his primary place of residence, in a none-too-subtle swipe at Jakarta's working environment.

The capital's politics are also turning inwards. The city's government has yet to pass its budget for 2015 amid protracted wrangling, despite the urgent need to address infrastructure problems. Meanwhile, annual negotiations with Jakarta's trade unions over minimum wages, which are overseen by the local government, have become increasingly politicised. They have increased by an average of more than 20% a year over the past three years. The governor of Jakarta, Basuki Tjahaja Purnama (known as Ahok), told businesses during the last round of negotiations to leave the city if they believed that wages were too high.

An opportunity for others

Surabaya is well placed to take advantage of Jakarta's problems. Its population is a more manageable 3.6m and transport and communication links are being upgraded. Access to Surabaya's strategically located port is being widened and deepened, while an integrated industrial and deep-water port facility in the nearby city of Gresik is under construction. A second terminal was added to Surabaya's airport in 2014 and two further runways are planned within five years. Surabaya and East Java, more generally, are less prone to flooding than Jakarta and investors are promised reliable power supply.

The local authorities also want to improve the challenging business environment. Surabaya's mayor, Tri Rismaharini, has gained an international reputation through her efforts to shake up the sleepy local bureaucracy and green the city. The East Java government was the first in Indonesia to develop a "one-stop" licensing service, an innovation that is now being rolled out nationwide. It claims that foreign-invested firms can be approved within 17 days; this compares with over 50 days in Jakarta, according to the World Bank.

Investors responding

Foreign companies have been giving more serious consideration to regions outside Jakarta. Figures from the Indonesia Investment Co-ordinating Board indicate that Jakarta attracted around 40% of national FDI in 2010. That proportion has slipped steadily since, and stood at only 16% in 2014. The main beneficiaries have been provinces elsewhere in Java, including West Java, East Java and Banten.

The East Java government claims that it could achieve more if national investment regulations were loosened. Regional administrations do not have the authority to set favourable tax rates or offer significant investment incentives. They also remain boxed in by often poorly drawn-up regulations at national level. This contrasts with the autonomy granted by the Chinese government to the special economic zones it established in the 1980s to cultivate FDI in manufacturing.

Nevertheless, the trend towards greater geographical diversification of FDI in Indonesia will continue. Not only do regional cities often offer a better investment environment than traffic-clogged Jakarta, but their rapid economic growth means that they represent sizeable markets in their own right. Although it may be some time before Surabaya reclaims its historic position, more is likely to be heard from it in future.

Congrats on the deal

 

[Shotgunner51]

Thread locked for cleaning up.

Edit: Now re-open. Reminder to posters, topic is "Indonesia asks Japan to work on Jakarta-Surabaya train project", stay on it, and debate professionally.