Indonesia rail line decision delayed
Print Edition
INDONESIA has delayed naming the winner of a hotly contested race between China and Japan to build the first high-speed railway in Southeast Asia’s biggest economy, a senior government official said yesterday.
The two Asian giants have repeatedly sent high-level envoys to lobby the Indonesian government in what has been an unprecedented battle to build the 150-kilometer link between the capital, Jakarta, and the textiles hub of Bandung.
President Joko Widodo had been expected to announce a winner as early as this week. But Cabinet Secretary Pramono Anung said Widodo now planned to make a decision based on a review of the two proposals by an independent consultancy and a team of Cabinet ministers.
“The president has extended the time for the review until September 7, so that the process is fairer,” Anung told reporters, adding that the announcement of the winner could come any time after that.
Coordinating Minister for Economic Affairs Darmin Nasution said he and other senior officials assessing the bids would be making a recommendation to Widodo today.
“We want to meet the president together, and explain how we reached our decision, while giving our recommendation letter,” he told reporters.
Nasution said he did not know when Widodo would announce the winner.
Two government sources have said that Indonesia is leaning toward awarding the multi-billion dollar contract to China because its proposal is seen as “less financially burdensome.”
Indonesia’s state enterprises minister said that if China were to win the contract, state-owned companies PT Wijaya Karya, PT Jasa Marga, PT Kereta Api, and PT Perkebunan Nusantara VIII would be involved in the consortium with China.
“There is truly no burden on the government,” the minister, Rini Soemarno, told reporters yesterday.
Japan competes with Singapore as Indonesia’s top investor, while China is its biggest trading partner.
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