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Japan leaves out state funding to match China's high-speed rail proposal
Japan has submitted a new proposal for the development of Indonesiaâs first bullet train that excludes Indonesian state funding in an attempt to topple Chinaâs recent bid, an official says
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J
apan has submitted a new proposal for the development of Indonesia's first bullet train that excludes Indonesian state funding in an attempt to topple China's recent bid, an official says.
The deputy for infrastructure and regional planning at the office of the coordinating economic minister, Luky Eko Wuryato, said on Friday that Japan's new proposal was similar to China's, which did not request government funding for the development of the project that will connect Jakarta and the capital of West Java, Bandung.
'[In Japan's new bid] the government is no longer involved financially; there's only state-owned enterprises and private sectors,' said Luky as quoted by Kontan.com.
In its previous proposal, Japan requested state funding because, according to its feasibility study, the project was deemed non profitable.
Japan's first submission proposed a financial scheme with 74 percent of the budget being funded by state-owned enterprises, while the remaining 10 and 16 percent coming from the state budget and private sectors, respectively.
However, Luky refused to reveal further details of Japan's new proposal, only hinting that it was similar to China's.
Recently, China submitted a proposal for the high-speed railway that estimated a project cost of around US$5.5 billion and promised that the project would be finished by 2018.
The government will decide on a winner for the contract in the coming weeks. (rad/ika)(+++)
