Jakarta, Sept 18 (Antara) - China and Japan are competing stiffly to win an Indonesian multi-billion dollar high-speed train project but this week Jakarta and Beijing held follow-up talks, after Japan has promised to propose a new feasibility study.
"We held follow-up talks to discuss various matters relating to the plan to build a fast train network. We hope that an agreement would soon be reached, so that the project would be developed immediately," State-owned Enterprises (SOE) Minister Rini Sumarno informed Antara in Beijing Wednesday night.
The Japanese government is lobbying Indonesian President Joko Widodo over the planned construction of Indonesia's Jakarta-Bandung fast train project. Japanese Prime Minister's Special Envoy Hiroto Izumi met President Widodo at the presidential office late last month (Aug. 26) to discuss the project.
Japan had earlier conducted a feasibility study. According to the National Development Planning Board (Bappenas), the Japanese feasibility study had put the investment value for the project at US$6.2 billion.
In the meantime, China conducted a feasibility study after Japan. In the Chinese proposal, the investment needed for the construction of the high speed train development was only US$5.5 billion.
The difference in the protocols used in the feasibility studies conducted by Japan and China reveal the differences in the length of tracks and investment value for the Jakarta-Bandung fast train project
However, Japan has sought the Indonesian government's approval to conduct another feasibility study. It has requested approval to conduct a study under the same ground used by China
Japan also expressed readiness to accelerate the completion of the project from its previously proposed schedule. "They said it will be difficult to accelerate the project in terms of a time frame if an environmental study is included. They basically have several (new) proposals. I cannot explain it all yet. There is also the matter of transfer of technology," Chief Economic Minister Darmin Nasution said last month.
This week, Minister Rini Sumarno is in Beijing for follow-up talks of the fast train project.
The Indonesian fast train project is similar to Japan's Shinkansen train network, with a cruising speed of 300 kilometers per hour, and will cover the Jakarta-Bandung route.
However, President Joko Widodo said that "there are alternatives -- train with a speed of 350 kilometers per hour or one with a speed of 250 kilometers per hour, and political calculation."
President Joko Widodo during his recent Middle East tour said on Monday (Sept. 14) the project would cost a lot of money at around Rp70 trillion-Rp80 trillion forcing the government to opt for the business to business scheme.
Originally the project were offered by the government to Japan and China, but the cost being too high had apparently forced the government to change the scheme to system.
It would not use fund from the state budget; there would be no government guarantee and it would be in a business-to-business scheme, the President said.
According to Minister Sumarno, China might accept the conditions proposed by Indonesia to build the fast train network wherein the development of the project would purely be carried out on a business-to-business (b-to-b) basis without a government guarantee and without utilizing funds from the state budget.
"They even agreed to take part in the development of its stations through a transfer of technology. As it is to be carried out on a b-to-b basis, it should benefit us, including the technological transfer," noted Sumarno.
Minister Sumarno said she also discussed the possibility of including a joint production scheme of export-oriented train coaches in the fast train development project cooperation.
The minister revealed that China also agreed to jointly manufacture coaches not only for fast trains but also for electric and light trains.
"The coaches manufactured jointly could be exported, so that it would also provide income to the state and boost employment opportunities," Sumarno affirmed.
She said that various agreements will therefore be discussed intensively, so that several projects related to the fast train development plan could be implemented soon.
"If the agreements are reached, the projects could soon be implemented and would offer jobs to around 40 thousand workers. If the fast train network is built, for instance, on the Jakarta-Bandung route, we hope the economies of the cities along the fast train lines such as Karawang and Walini would be boosted, and the people's welfare would be improved," she emphasized.
Regarding the plan to jointly manufacture coaches, China has agreed to develop an aluminum factory in Indonesia.
"China has agreed that the raw material bauxite used for producing aluminum should be processed into a finished product before being exported. If the aluminum industry is developed, it means that we will be able to make aluminum slabs as the raw material to build coaches though this cooperation," stated the minister.
On the technological transfer, she remarked that China agreed to provide training to Indonesians, regardless of whether it sends experts to Indonesia, or our experts go to China for training.
Sumarno noted that for implementing the project, her ministry has formed a consortium, which includes PT Wijaya Karya, PT Jasa Marga, PT Perkebunan Nusantara VIII, and PT Inka, among others.***3***
(T.A014/o001)
(T.A014/A/BESSR/O. Tamindael) 18-09-2015 11:41: |
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