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Indonesia favouring China over Japan in railway bid - government sources

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Indonesia must have been threatened to dump the Chinese trains and choose the expensive Japanese one. US is probably bullying the Indonesian leaders on behalf of Japan.


We use independent consultant, BCG (Boston Consulting Group) to review both proposals and give objective assessment based on various criteria given by Indonesian government. The final say will be decided by the Indonesian government or Mr. President himself.

US doesn't have any interest on this project, and they will not do such crude measure that will strain our good relation. If China feel that they already give the best offer, then they should be confident and content about the process. We treat all participant fairly. Both China and Japan have a very positive relation with Indonesia and both are our important source of investment.

Meanwhile, China consortium, Sinohydro, recently completed the construction of 2nd largest dam in Indonesia.
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Jokowi wants so many project will be finished at his terms, that's way he chose offer with the shortest time table

although i am not agree 100 percent with his decision, let me to support the development of this project
 
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Jokowi wants so many project will be finished at his terms, that's way he chose offer with the shortest time table. Although i am not agree 100 percent with his decision, let me to support the development of this project

Infrastructure push will be his golden ticket to secure his 2nd term presidency... if success. This project will become part of his bet.
 
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Is that official? If so, a nice gesture on the V-Day.

I thought so, the result of study from the consultant has been handed over and Mr.President decide that the project would be given to the party that don't require Indonesian government funding or guarantee for the investment. The winner will form consortium with Indonesian state-owned enterprises. Sounds like China proposal to me.
 
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Japan has already got another huge project, around 50 trillion Rupiah for the largest and most modern coal power plan in South East Asia
 
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I thought so, the result of study from the consultant has been handed over and Mr.President decide that the project would be given to the party that don't require Indonesian government funding or guarantee for the investment. The winner will form consortium with Indonesian state-owned enterprises. Sounds like China proposal to me.

Let's hope this opens a new page for the two nations to further deepen cooperation on other development projects.

Japan is definitely a major industrial power and a leader in Asian development. China's presence will only further the innovation market and public goods effect will multiply.

Nonetheless, I guess still have to wait for formal announcement.
 
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Indonesia Seeks New Bids From Japan, China for Bandung Rail Link - Bloomberg Business

From Japan, China for Bandung Rail Link
Indonesia is asking Japan and China for new bids for a major rail link as a $6 billion high-speed train is no longer seen as commercially viable, the minister coordinating transport policy said.

A 200-kilometer (120 mile) per hour locomotive between the capital Jakarta and the third-biggest city Bandung would be 30 percent to 40 percent cheaper than a bullet train, Rizal Ramli said in an interview Thursday with Bloomberg News, his first with international media since taking office last month. The need for new proposals will delay the decision by several weeks, he said.

China and Japan have been lobbying Indonesia’s government for the contract for a high-speed train, which would be the biggest infrastructure project started by President Joko Widodo. The president, who took office last year vowing to overhaul railways and ports in the world’s largest archipelago, has made little progress.


“We don’t need a high-speed train but a medium-speed one,” Ramli said after meeting other ministers. “Japan and China are competing very hard, we should let them compete to the maximum.”

Indonesia wants to develop places on the route to Bandung and a medium-speed train with more or lengthier stops would achieve this better than a high-speed train, Ramli said.

China’s Push
China has been pushing aggressively to sell its rail technology overseas, using it to project diplomatic and economic clout as Premier Li Keqiang inks rail deals on trips around the developing world. That has put China in competition with Japan, which sees high-speed rail as a promising export as Prime Minister Shinzo Abe fights to revive the country’s economy.

China’s proposal the for Indonesian line involved funding through a Chinese loan and Indonesian state companies, whereas Japan’s proposal was to be funded through the Indonesian budget and a low-interest loan from Japan. Ramli said the government doesn’t want to use the state budget for the train so it can focus instead on projects outside the main island of Java.


A high speed rail link between the capital and second-biggest city Surabaya was a future possibility, Ramli said. A high-speed train to Bandung could be offered to private companies under a business-to-business agreement without any government guarantees, Transport Minister Ignasius Jonan told reporters.

A high-speed train would cut travel times between the capital and Bandung to about half an hour from the current three hours on a line that winds its way through mountains and rice paddies on Java island.

Second Bidder
After more than five years of feasibility studies and high-level lobbying, Japanese officials expected to bring bullet trains to Indonesia, until Indonesia announced in April that it also was talking to China about the project. Jokowi’s government has been more open to Chinese investment than its predecessor as it seeks infrastructure funding.

Indonesia estimates it needs to spend $450 billion on roads, railways, ports and power stations to revive an economy growing at its slowest pace since 2009. The state budget can only cover about 30 percent of that amount, according to the country’s investment board.
 
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Wow, such unexpected turn... After studying both proposal, we conclude that the 350Km/h bullet train will never reach it's maximum speed in 150Km Jakarta-Bandung line, limited by numbers of station that both propose.

So 250Km/h hi speed train will do. The revision on proposal will be easy since all the study are already there, just need to adjust the speed, and the cost. We expect that this decison will brought down the cost by 30%. So ticket pricing will be more affordable.

After Jakarta-Bandung, most likely we will continue with Surabaya line (this will be the true bullet train).
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I thought so, the result of study from the consultant has been handed over and Mr.President decide that the project would be given to the party that don't require Indonesian government funding or guarantee for the investment. The winner will form consortium with Indonesian state-owned enterprises. Sounds like China proposal to me.

yes it's official, China railway consortium along with Indonesian railway companies consortium bagged the deal

Congrats! you guys has just bagged the deal. let's wait a little bit until the announcement day.

Do the rendition once again please when China really gets the project!
BCG is an united Sanctions of america company
Oh wait, who is interested in the second round bid?

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