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Friday, October 2, 2015, 10:29

Fast-train talks to be sealed in Oct: Jakarta

By Xinhua

JAKARTA - An Indonesian minister said on Thursday that negotiations between Indonesian and Chinese consortiums to build a high-speed rail transport system linking Jakarta to West Java province capital of Bandung were under way at the moment.

Speaking at a press conference, Indonesia State-owned Enterprises (SoE) Minister Rini Soemarno said the joint venture agreement of the project between the two consortiums was expected to be reached later this month.

The two consortiums are negotiating to finalize all aspects of the project, she said, emphasizing that funds to finance the project would not come from the government.

"The President has decided that this project cannot be financed by state budget or guaranteed by government. Indonesian government is now concentrated to build train transport systems in Sumatra, Kalimantan and Sulawesi. So, no government's money would be used to finance the project," the minister said.

According to Rini, the proposed high-speed train connecting Jakarta with Bandung will likely have a speed of between 200 to 250 kilometer per hour.

"But it would be depend on the results of the negotiations," Rini said.

The fast train serving the two cities would pass through four stations, one in Jakarta and three in West Java province, she said, adding one of the stations will be in Walini, the area in West Bandung designed to be a new tourism center.

The project, which is expected to be completed in three years, would require an investment of around US$5.5 billion.

The minister picked China over Japan which too had submitted a bid.

The Indonesian government decided on Sept 3 to abandon a high- speed railway project and instead asked the two bidders - China and Japan - to submit new plans to build a slower train system.

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