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Jakarta Post

Japan leaves out state funding to match China'€™s high-speed rail proposal

  • The Jakarta Post

    The Jakarta Post

Jakarta   /   Fri, August 14, 2015   /  05:29 pm

Japan 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.

'€œ[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)(+++)

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