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strong>Feb. 4, 2016

The government has stated that Kereta Cepat Indonesia China (KCIC) must meet nine requirements in the concession agreement in order to obtain a business permit for the Jakarta-Bandung high-speed railway.

'€œThe government has given KCIC nine requirements to meet for obtaining the high-speed train project concession agreement,'€ said the Transportation Ministry'€™s director general of railways, Hermanto Dwiatmoko, during a press conference in Jakarta on Wednesday.

The requirements, he added, included accepting the non-extendable concession period of 50 years, effective from the signing of the concession agreement without involving state budget support. In addition, KCIC must accept being subject to Indonesian laws and regulations.

Your comments:

Was the groundbreaking ceremony already conducted before even planning the tracks? Same as this power plant groundbreaking before even purchasing the land months ago and still not building?

I see why the Japanese bailed out.

Kantisini

I fear this will be like all those failed Jakarta monorail type projects that morphed and passed from one consortium to another one over the past 20 years and never managed to get financial backing '€” and the blighters left ugly half-built pillars over the entire city!

The government looks to have been '€˜blowing their trumpet'€™ a bit too early on this one. Let'€™s hope the tune is not '€œthe last post'€.

Pherplexed

It seems strange that an environmental study was not done before the project was awarded. It is also bemusing that technical studies have not been done on the entire 150-kilometer stretch, as this should have been done to determine the feasibility of constructing the project.

Maybe the ceremony was just to announce an MOU has been entered and, subject to completion of all studies, it may or may not proceed. So it is a project that has not been approved as yet.

LB Saw

'€œAs expected?'€ It will soon be filed together with the Jakarta elevated train, the bridge to Sumatra and so on and so forth.

Yaudah

I understand this is a state project and there'€™s a fair chunk of change at stake, but wouldn'€™t you research all this before announcing the project?

All the flip flopping sends the wrong message to foreign investors. I can hear bank vaults slamming shut across the world.

Morganunfairchild

And the Japanese are still smiling and breathing a sigh of relief, because they lost nothing.

However, there is no doubt the rest of the corporate world reads this, too, and it surely has a major impact on deciding to invest elsewhere.

Willo1246