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Into the arms of the rising sun: Jakarta's MRT & Shinkansen

More Competition is good. Here's a good article about Chinese investment in the country.

Give Us Money and Jobs, Indonesia Says to China
By Anita Rachman

A PT Perusahaan Listrik Negara (PLN) technician performs maintenance work to power cables on a lamp post in Medan, North Sumatra province, on April 7.
Dimas Ardian/Bloomberg News
JAKARTA, Indonesia—Indonesia has been betting on China to help bankroll its many planned infrastructure projects. Now it’s banking on Asia’s biggest economy to tackle another issue in this nation of 250 million people: unemployment.

The government is encouraging foreign investors to put their money toward projects that boost economic growth and also “create new jobs and reduce unemployment,” said a statement from the Ministry of Manpower and Transmigration following a meeting between minister Hanif Dhakiri and China’s deputy labor minister.

During the meeting at the International Labor Conference in Switzerland, Mr. Dhakiri invited China, “to enhance cooperation in the field of employment, including job training, productivity enhancement, research,” the statement said.

BN-IW806_INWORK_D_20150612012654.jpg

A worker stitches a pair of jeans at a small factory at Cakung industrial village in Jakarta, on May 5.
Beawiharta/Reuters
Indonesia’s unemployment rate is around 6%, with 7.4 million people out of a working population of 122 million jobless, according to the latest data. The majority work in the informal sector. In addition, a growing number of youth are expected to enter the work force in the next five years, with estimates that around 15 million new jobs will be needed employ them.

President Joko Widodo’s administration aims to create two new million jobs every year for that purpose. Thus, investments that are “labor intensive” are highly desirable, said Mr. Dhakiri.

China, which has shown strong interest in investing in big-ticket projects, has welcomed the idea, the minister said, according to the statement.

During a visit to Beijing in March, President Widodo witnessed the signing of around $63.4 billion in preliminary commitments from Chinese companies, much of which would go toward infrastructure development. Direct investment from Chinese state companies has been used to build large power plants and other infrastructure, such as the longest bridge in Indonesia.

Khairul Anwar, director general for training and productivity at the manpower ministry, said power plant projects have provided jobs for mechanical workers and electricians.

But many of the jobs available require skilled professionals – which the country is lacking.

Mr. Anwar said the ministry is working to improve training for unskilled workers and will work to link up companies looking for employees with qualified candidates. He said it’s important for training centers to know what kind of jobs companies currently need, so that they can supply the demand.

The ministry doesn’t have a figure on how many people have been employed by the infrastructure projects that Indonesia has begun rolling out, Mr. Anwar said. But it’s aiming to generate at least a million new jobs this year to fulfill the needs of projects created through both foreign and local investment.

Give Us Money and Jobs, Indonesia Says to China - Indonesia Real Time - WSJ

Nice read, thanks! I knew China has been working with Indonesia on many projects but that longest bridge (Suramadu Bridge am I right?) is new to me!

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Suramadu Bridge - Wikipedia, the free encyclopedia

Since Japan, and to a lesser extent SK and Taiwan, have established early ties with Indonesia and hence are more involved in the economy, I hope late comer China can pickup speed since being a large economy Indonesia has a lot of room to grow, all the best my friend!
 
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Nice read, thanks! I knew China has been working with Indonesia on many projects but that longest bridge (Suramadu Bridge am I right?) is new to me!

View attachment 232631

Suramadu Bridge - Wikipedia, the free encyclopedia

Since Japan, and to a lesser extent SK and Taiwan, have established early ties with Indonesia and hence are more involved in the economy, I hope late comer China can pickup speed since being a large economy Indonesia has a lot of room to grow, all the best my friend!

Other challenging infrastructure in Indonesia that is succesfully built is Bali Mandara Toll road, built by Indonesian state owned companies consortium.

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Next big Project is New Priok Port, at this project we are partnering with Japanese company (Mitsui)

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Current work
20131217_045653_new-tanjung-priok.jpg
 
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Despite having a long process, it's done now! Congrats to city of Jakarta, Shimizu Corp and Sumitomo Corp!
  • I suppose it's a Tendering process? Or instead it was a Competitive Negotiation process?
  • Either way who were the competing participants in the process?


Indeed these developments in Indonesia is a welcome sign for Japanese companies who are looking to tap into the developing markets in Southeast Asia such as Indonesia, the Philippines, Malaysia, and Thailand. As for potential for the Indonesia’s MRT, they can avail from the expertise and excellent work culture of Nippon Steel and Sumitomo. Sumitomo provides high quality rails with leading edge technology , the company also offers rails in wide ranges of sizes and quality for general passenger trains, high speed trains, and freight trains carrying heavy loads. The organization also produce various types of steel for railway applications such as staineless steel materials for railway carriages and steel materials for subway walls. For IT solutions, the organization offers proposals for more sophisticated railway operation and transportation planning work and also will be able to provide actual system construction methods for the partners!


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NSSMC Is Ready to Manufacture and Ship the World Longest Railway Rails: 150-Meter Rails
The latest advance of this nature is completion of facilities at our Yawata Works enabling it to handle and ship out rails in 150-meter length, longest in the world. This long rail will serve to help stabilize the rail track, by reducing the number of weld, and reducing rail maintenance of railway companies.

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The active suspension developed by NSSMC controls the horizontal movement of railway cars. An onboard computer detects body movement from a sensor attached to the car body, makes an actuator generate power in the reverse direction, and controls the car body by canceling out the movement. This superior technology enables to improve ride quality. Since the first commercial adoption to the E2 series*1 of the Tohoku Shinkansen in 2001, NSSMC’s active suspension has been adopted and highly evaluated by the E3 series*2 of the Akita Shinkansen and the Yamagata Shinkansen as well as by the Narita Express, the Keisei New Skyliner, the Odakyu Romance Car VSE, and limited express trains such as the Joban Line new limited express train series E657.


All of these can be aspects applied to Jakarta's MRT.

The scale is impressive!
:tup:

Indeed!

Nice read, thanks! I knew China has been working with Indonesia on many projects but that longest bridge (Suramadu Bridge am I right?) is new to me!

View attachment 232631

Suramadu Bridge - Wikipedia, the free encyclopedia

Since Japan, and to a lesser extent SK and Taiwan, have established early ties with Indonesia and hence are more involved in the economy, I hope late comer China can pickup speed since being a large economy Indonesia has a lot of room to grow, all the best my friend!


Indonesia is the literal 'giant' within ASEAN, buddy. Indonesia as a nation with a population of over 256 million people is a massive market, and an economy. Indeed it is to the benefit of Japan, China, South Korea and Taiwan to be tapping into Indonesia now, as the return on investments will be there. :)
 
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Indonesia is the literal 'giant' within ASEAN, buddy. Indonesia as a nation with a population of over 256 million people is a massive market, and an economy. Indeed it is to the benefit of Japan, China, South Korea and Taiwan to be tapping into Indonesia now, as the return on investments will be there. :)

This is the latest cooperation with Japanese...............:devil:

Krakatau Steel Establish Two Joint Ventures with Japan | Economy & Business | Tempo.Co :: Indonesian News Portal

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A worker observe steel production process in a factory owned by Krakatau Steel in Cilegon.

TEMPO/Tony Hartawan

MONDAY, 23 MARCH, 2015 | 16:36 WIB

Krakatau Steel Establish Two Joint Ventures with Japan

TEMPO.CO, Jakarta - In collaborations with Japanese investors, PT Krakatau Steel Tbk. has formed two joint ventures, namely PT Krakatau Osaka Steel (KOS) and PT Krakatau Nippon Steel Sumikin (KNSS), to produce steel for automotive and construction industries.

Each of the companies has a production capacity of 500,000 tons with a total investment of US$500 million.

"Krakatau-Nippon will produce steel for automotive [industries], while Krakatau-Osaka will work on steel for construction. Krakatau Steel will supply raw materials for the automotive steel factory. But it won't be supplying [raw materials] yet for construction steel plant," Muhammad Khayam, the director for basic chemical industry at the Industry Ministry told Bisnis.com.

The two steel plants are expected to boost local content in vehicle production and infrastructure projects. Currently, local automotive and construction industries are counting on imported materials with particular specifications, since Krakatau Steel only produces standard steel.

The joint venture projects are built on a land with a total size of 40 hectares. The construction of the plants was predicted to absorb about 2,000 workers and about 400 more after the plants are fully operational.

Kazuhiro Egawa, an executive officer for overseas business development at the NSSMC, said that Krakatau Osaka Steel will be fully operational in 2016, while the Krakatau Sumikin will start its operation in 2017.
 
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This is the latest cooperation with Japanese...............:devil:

Krakatau Steel Establish Two Joint Ventures with Japan | Economy & Business | Tempo.Co :: Indonesian News Portal

347277_620.jpg


A worker observe steel production process in a factory owned by Krakatau Steel in Cilegon.

TEMPO/Tony Hartawan

MONDAY, 23 MARCH, 2015 | 16:36 WIB

Krakatau Steel Establish Two Joint Ventures with Japan

TEMPO.CO, Jakarta - In collaborations with Japanese investors, PT Krakatau Steel Tbk. has formed two joint ventures, namely PT Krakatau Osaka Steel (KOS) and PT Krakatau Nippon Steel Sumikin (KNSS), to produce steel for automotive and construction industries.

Each of the companies has a production capacity of 500,000 tons with a total investment of US$500 million.

"Krakatau-Nippon will produce steel for automotive [industries], while Krakatau-Osaka will work on steel for construction. Krakatau Steel will supply raw materials for the automotive steel factory. But it won't be supplying [raw materials] yet for construction steel plant," Muhammad Khayam, the director for basic chemical industry at the Industry Ministry told Bisnis.com.

The two steel plants are expected to boost local content in vehicle production and infrastructure projects. Currently, local automotive and construction industries are counting on imported materials with particular specifications, since Krakatau Steel only produces standard steel.

The joint venture projects are built on a land with a total size of 40 hectares. The construction of the plants was predicted to absorb about 2,000 workers and about 400 more after the plants are fully operational.

Kazuhiro Egawa, an executive officer for overseas business development at the NSSMC, said that Krakatau Osaka Steel will be fully operational in 2016, while the Krakatau Sumikin will start its operation in 2017.




This is an opportunity forJapanese businesses and and many should start attending seminars where one may gain insight into the perspective, understanding and expectations of Japanese businesses on investment in Indonesia. They are generally very eager to invest in Indonesia, given its vast population, relatively cheap labor, increasing GDP level and the strength of its economy, which grew 4.5 percent last year, making it the fourth largest in Asia, despite the global economic downturn.

Japan has been investing in Indonesia for a long time, particularly in automotive, electronic goods and the energy and mining sectors. For Japanese businesses, Indonesia has been the place for low-cost manufacturing as well as the source of various natural resources. In Indonesia, there are about 1,000 Japanese companies which employ approximately 300,000 people.

There is a new trend. Thanks to the increasing income, great population and growth in consumer goods consumption in Indonesia, the area of investment is no longer limited to “traditional” sectors but now also covers retail, media and consumer product sectors. Japanese restaurant chains (Ootoya, Yoshinoya, Ebisu Curry), minimarkets (7-Eleven), fashion and household appliances (MUJI) have recently emerged on the market in Indonesia. Taisho Pharmaceutical recently acquired Bristol Myers Indonesia. There are many more potential Japanese investors in the pipeline.

The investment of these new players is supported by the successful stories of several Japanese companies. While we stayed in Japan, Nikkei Shimbun, Japan’s most widely circulated daily business paper, reported on Ajinomoto’s plan for a new $50 million factory in Indonesia. The new factory is aimed not only at domestic market but also at export to Middle East countries and Pakistan. This news implies that there would be more Japanese businesses which regard Indonesia as a production and export base for “halal” goods.

Another media source recently wrote about the success of Yakult. Yakult sells millions of bottles per day and provides income to thousands of Indonesian women through the “Yakult Lady” sales force. POCARISWEAT (Otsuka Pharmaceutical) and GATSBY (Mandom) have also become well-known, successful business cases.

Many Japanese business people have now become aware that Indonesia is a country full of business opportunities!

This is great for Indonesia, great for Japan!
 
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This is an opportunity forJapanese businesses and and many should start attending seminars where one may gain insight into the perspective, understanding and expectations of Japanese businesses on investment in Indonesia. They are generally very eager to invest in Indonesia, given its vast population, relatively cheap labor, increasing GDP level and the strength of its economy, which grew 4.5 percent last year, making it the fourth largest in Asia, despite the global economic downturn.

Japan has been investing in Indonesia for a long time, particularly in automotive, electronic goods and the energy and mining sectors. For Japanese businesses, Indonesia has been the place for low-cost manufacturing as well as the source of various natural resources. In Indonesia, there are about 1,000 Japanese companies which employ approximately 300,000 people.

There is a new trend. Thanks to the increasing income, great population and growth in consumer goods consumption in Indonesia, the area of investment is no longer limited to “traditional” sectors but now also covers retail, media and consumer product sectors. Japanese restaurant chains (Ootoya, Yoshinoya, Ebisu Curry), minimarkets (7-Eleven), fashion and household appliances (MUJI) have recently emerged on the market in Indonesia. Taisho Pharmaceutical recently acquired Bristol Myers Indonesia. There are many more potential Japanese investors in the pipeline.

The investment of these new players is supported by the successful stories of several Japanese companies. While we stayed in Japan, Nikkei Shimbun, Japan’s most widely circulated daily business paper, reported on Ajinomoto’s plan for a new $50 million factory in Indonesia. The new factory is aimed not only at domestic market but also at export to Middle East countries and Pakistan. This news implies that there would be more Japanese businesses which regard Indonesia as a production and export base for “halal” goods.

Another media source recently wrote about the success of Yakult. Yakult sells millions of bottles per day and provides income to thousands of Indonesian women through the “Yakult Lady” sales force. POCARISWEAT (Otsuka Pharmaceutical) and GATSBY (Mandom) have also become well-known, successful business cases.

Many Japanese business people have now become aware that Indonesia is a country full of business opportunities!

This is great for Indonesia, great for Japan!

Thanks for this long explanation bro,

Actually Indonesian-Japan relationship is not merely business. There is friendship that is even above business for some thing crucial. For instant, We know Japan relies on our natural gas heavily, and despite many of our industries are currently also hungry on gas, we still keep exporting many of our gas to Japan even after end of gas supply contract ( the gas is from Mahakam block if I am not mistaken) because Japan at that time suffers from Fukushima nuclear plan and must add more gas to produce electricity, so second contract has been signed again even though the supply has been reduced in number.

This policy make us even need to import some gas from outside to feed our own industries and keep using expensive oil for some of our power plan. I thing it will be different if it is Singapore and not Japan. I believe we will not prolong sending our gas to Singapore anymore after the contract finishes (since they dont want to sign any deal to bring our corruptor and their money from that city state, and we also need that gas). Despite that, in the long term Indonesia needs to stop exporting gas if we cannot find new gas field anymore and focus on its own industry
 
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Thanks for this long explanation bro,

Actually Indonesian-Japan relationship is not merely business. There is friendship that is even above business for some thing crucial. For instant, We know Japan relies on our natural gas heavily, and despite many of our industries are currently also hungry on gas, we still keep exporting many of our gas to Japan even after end of gas supply contract ( the gas is from Mahakam block if I am not mistaken) because Japan at that time suffers from Fukushima nuclear plan and must add more gas to produce electricity, so second contract has been signed again even though the supply has been reduced in number.

This policy make us even need to import some gas from outside to feed our own industries and keep using expensive oil for some of our power plan. I thing it will be different if it is Singapore and not Japan. I believe we will not prolong sending our gas to Singapore anymore after the contract finishes (since they dont want to sign any deal to bring our corruptor and their money from that city state, and we also need that gas). Despite that, in the long term Indonesia needs to stop exporting gas if we cannot find new gas field anymore and focus on its own industry

Very excellent point(s), bro. Not many of our neighbors know of the deep and comprehensive relationship Jakarta has with Tokyo, and it is maturing to new levels. In fact I should say also that Japan's deep rooted relationship with Southeast Asia has been rooted in its relationship with Indonesia, which has been a pillar of Japanese-Southeast Asian relations. From Indonesia, this relationship has spread to Philippines, Malaysia, Thailand, Vietnam, Laos, Cambodia and recently Burma.

Indonesia, clearly, has been one of the longest, one of the most dynamic partners of Japan in ASEAN (and also of the now defunct SEATO). Historically, culturally, economically, politically. In all fields.
 
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Krakatau Steel Establish Two Joint Ventures with Japan

TEMPO.CO, Jakarta - In collaborations with Japanese investors, PT Krakatau Steel Tbk. has formed two joint ventures, namely PT Krakatau Osaka Steel (KOS) and PT Krakatau Nippon Steel Sumikin (KNSS), to produce steel for automotive and construction industries.

Each of the companies has a production capacity of 500,000 tons with a total investment of US$500 million.

"Krakatau-Nippon will produce steel for automotive [industries], while Krakatau-Osaka will work on steel for construction. Krakatau Steel will supply raw materials for the automotive steel factory. But it won't be supplying [raw materials] yet for construction steel plant," Muhammad Khayam, the director for basic chemical industry at the Industry Ministry told

The two steel plants are expected to boost local content in vehicle production and infrastructure projects. Currently, local automotive and construction industries are counting on imported materials with particular specifications, since Krakatau Steel only produces standard steel.

The joint venture projects are built on a land with a total size of 40 hectares. The construction of the plants was predicted to absorb about 2,000 workers and about 400 more after the plants are fully operational.

Kazuhiro Egawa, an executive officer for overseas business development at the NSSMC, said that Krakatau Osaka Steel will be fully operational in 2016, while the Krakatau Sumikin will start its operation in 2017.

wait, what happened to the Krakatau Posco? isn't Krakatau already partnering with Korean Posco before? was it because of the Posco explosion that they're switching partnership?
 
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wait, what happened to the Krakatau Posco? isn't Krakatau already partnering with Korean Posco before? was it because of the Posco explosion that they're switching partnership?

Krakatau Posco has already been producing since 2014, the explosion is minor and only halt the production for 1 week according to company secretary during that moment (2014). Krakatau Posco which is Indonesian - Korean partnership is a giant one and I think its target market is shipping industry and also military industry in which major players are also state owned companies like PT PAL (Shipbuilding) and PT Pindad (weapons and vehicle (IFV, APC, etc), and currently they are really using Krakatau Steel for their steel need.

The cooperation with Japan is for specific industry (automotive and construction). At those industries there are many Japanese affiliated companies like Toyota Astra, Daihatsu, Yamaha, Honda, etc that will likely to buy those steel (for engine and other part).

For the construction part, since Krakatau Steel is a state owned company, so it likely can sell their steel easily to our giant construction company that most of them are state owned like PT Adhi Karya and PT Waskita Karya (the ones that build Suramadu bridge with China Road company). There are also many large Japanese construction companies in Indonesia, so it will make this cooperation become promising, plus government promises to help steel industry using tax barrier for the imports ( not yet implemented ).

In essence, Indonesia is still in deficit in term of steel production, so there should not be any worry in term of this. So even though Krakatau Posco also want to produce steel for automotive industry, it will still have many market in my opinion by seeing the growth of our industries need for steel product.

This I give you two articles regarding this matter

Krakatau-Posco to contribute
80% of RI steel production

The Jakarta Post, Cilegon | Business | Mon, December 23 2013, 10:32 PM


The president director of state-owned steel producer PT Krakatau Steel, Irvan K.Hakim, has said the newly inaugurated integrated steel plant Krakatau-Posco will produce 3 million tons of steel per year, accounting for around 70-80 percent of Indonesia’s total steel production.

“The presence of PT Krakatau-Posco in the beginning of 2014 will be the answer to increasing domestic demand for steel,” said Irvan, on Monday, after the inauguration of Krakatau-Posco in Cilegon, Banten.

Krakatau-Posco, which was inaugurated by President Susilo Bambang Yudhoyono, is a joint venture between Krakatau Steel and South Korean steel giant Pohang Iron and Steel Company (Posco).

Irvan hoped that demand for steel from the automotive sector would increase to 20 percent from the current 7 percent, supported by growth in Indonesia’s automotive industry that used steel as a raw material.

Overall, Krakatau Steel accounts for 42 percent of the domestic market.

“Once the steel plant construction is fully completed, the market share can reach 60 percent. There is no steel factory with a market share that reaches more than 30 percent,” said Irvan as quoted by Antara news agency.

The first stage of Krakatau-Posco’s construction activity cost US$2.66 billion.

First Lady Ani Yudhoyono attended the event, along with several cabinet ministers and officials, including Industry Minister MS Hidayat, State-Owned Enterprises Minister Dahlan Iskan, and Banten Deputy Governor Rano Karno, as well as South Korea Trade, Industry and Energy Deputy Minister Kim Jundong and Posco CEO Chung Joon Yang. (ebf)

- See more at: Krakatau-Posco to contribute 80% of RI steel production | The Jakarta Post


Toyota Doubles Its Indonesian Engine Manufacturing Capacity
Posted on February 27, 2014 by ASEAN Briefing

AutoManufacturing.jpg


Toyota has begun construction of a new US$198 million automotive engine manufacturing plant in Karawang, West Java, which, when completed in 2016, will more than double the company’s current production in Indonesia.

Toyota announced just two weeks ago they would be pulling out of Australia as a manufacturing base. The plant is expected to produce 216,000 engines per annum, of which half will be for the domestic market and the rest for export to destinations across Asia, Africa and South America. Of the production destined for Asia, Toyota has identified India, Japan, Malaysia, the Philippines, Thailand and Vietnam as being the markets for the Karawang produced engines.

The new plant comes on the heels of Toyota’s existing facility in Sunter, North Jakarta, which produces around 195,000 engines for Toyota’s international multipurpose vehicles, such as the Hilux pickup truck, Innova minivan and the Fortuner SUV.

Chris Devonshire-Ellis of Dezan Shira & Associates comments, “Toyota’s production and export strategy in this deal is a case study in the use of ASEAN and its free trade agreements. Indonesia is a member of ASEAN, and can provide relatively low labor costs and a young, energetic workforce. Japan has a Comprehensive Economic Partnership Agreement with ASEAN, and ASEAN itself also has an FTA with India. The other Asian countries marked out as receiving product from Toyota’s Karawang plant are all ASEAN members in their own right. As for Africa and South America, Indonesia has its own bilateral double tax treaties with Algeria, Egypt, South Africa, Sudan, Tunisia as well as Venezuela, all of which will have impacted upon the economic decisions Toyota has made.”

“Studying the impact of the ASEAN FTAs and the bilateral DTAs with each country is now a prerequisite for working out your global manufacturing and supply chain strategy. The new dynamic of the global supply chain can be seen at work right here in this Toyota deal, and it is ASEAN and not China that is becoming the new global manufacturing base,” he further commented.

You can stay up to date with the latest business and investment trends across Asia by subscribing to Asia Briefing’s complimentary update service featuring news, commentary, guides, and multimedia resources.

- See more at: Toyota Doubles Its Indonesian Engine Manufacturing Capacity - ASEAN Business News
 
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Contractors :

  • Kontraktor CP 101 dan CP 102: Tokyu - Wika JO
  • Kontraktor CP 103: OSJ JV (Obayashi - Shimizu - Jaya Konstruksi)
  • Kontraktor CP 104 & CP 105: SOWJ JV (Shimizu - Obayashi - Wijaya Karya - Jaya Konstruksi)
  • Kontraktor CP 106: SMCC-HK JO (Sumitomo Mitsui - Hutama Karya)

Tokyu/ Obayashi/Shimizu/ Sumitomo= Japanese companies/ has been working in Indonesia for so long, particularly Obayashi.

Wijaya Karya (Wika), Hutama Karya = Indonesian state owned companies
Jaya Konstruksi = Indonesian private owned company

Route

peta%20rute%20MRTJ.jpg
 
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Contractors :

  • Kontraktor CP 101 dan CP 102: Tokyu - Wika JO
  • Kontraktor CP 103: OSJ JV (Obayashi - Shimizu - Jaya Konstruksi)
  • Kontraktor CP 104 & CP 105: SOWJ JV (Shimizu - Obayashi - Wijaya Karya - Jaya Konstruksi)
  • Kontraktor CP 106: SMCC-HK JO (Sumitomo Mitsui - Hutama Karya)

Tokyu/ Obayashi/Shimizu/ Sumitomo= Japanese companies/ has been working in Indonesia for so long, particularly Obayashi.

Wijaya Karya (Wika), Hutama Karya = Indonesian state owned companies
Jaya Konstruksi = Indonesian private owned company

Route

peta%20rute%20MRTJ.jpg
Hopely in the future indonesia MRT network could be like japan MRT network.
 
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I was looking at population of Indonesian cities and it said Jakarta population is not even 10 million yet that's impossible to believe.
 
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