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RI pushes on key projects with Japan
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ndonesia is pushing for faster progress on flagship infrastructure projects on which it is cooperating with Japan, but various issues have yet to be settled, not least on pricing.
Transportation Minister Budi Karya Sumadi met with top officials in Japan last week to discuss several projects, including the second phase of MRT Jakarta, the Makassar-Parepare railway, Patimban seaport and a vehicle roadworthiness testing and certification facility (BPLJSKB) in Bekasi, West Java.
Minister Budi, accompanied by Indonesian Ambassador to Japan Heri Akhmadi and House of Representatives Deputy Speaker Rahmat Gobel, met with Japan’s Land, Infrastructure, Transport and Tourism Minister Akaba Kazuyoshi, Foreign Affairs Minister Uto Takashi and Japan Bank for International Cooperation (JBIC) Governor Tadashi Maeda, as well as other stakeholders.
During his visit, Budi asked the Japanese government to adjust its bid price for the Jakarta MRT Phase 2 project, saying that the developer’s proposed price was “too high”.
“We hope [progress on] these projects will continue to accelerate and run according to plan,” Budi said in a virtual press conference on Sept. 7, without naming the developer.
The Japanese Embassy in Indonesia said Tokyo was working with the Japan International Cooperation Agency (JICA) to help operator PT MRT Jakarta and other negotiating companies reach an agreement on the completion date and close in on agreeable prices.
“Japan is fully committed to the MRT project,” the embassy told The Jakarta Post on Wednesday.
Separately, JICA did not immediately respond to a request for comment on the issue.
Japan’s Sumitomo Mitsui Construction Company won a contract to build part of the MRT Jakarta’s phase-two development over a 72-month schedule that starts this month and ends in August 2027.
The Makassar-Parepare railway project, on the other hand, is proceeding as planned and nearing the financial close, according to Budi. The construction work is divided into five stages, one of which is expected to break ground by the end of this year.
Meanwhile, Indonesia said it welcomed Japan’s interest in the public-private partnership (PPP) scheme for developing the BPLJSKB in Bekasi.
The minister said that a Japanese company was participating in the project’s ongoing auction, without naming the company.
The Patimban Port project is almost complete, with the port slated to commence operations in December. According to Budi, the port’s operator PT Pelabuhan Patimban is in the final stage of negotiation with Japan’s Toyota Tsusho Corporation on forming a joint venture to operate both the car terminal and the container terminal.
During his visit, Budi also invited Japanese stakeholders to collaborate in the construction of five seaports, including New Palembang Port in South Sumatra, Gorontalo Port in North Sulawesi and Batam Port in Riau Islands.
The Investment Coordinating Board (BKPM) data show that Japanese investment in Indonesia has increased significantly over the past three years, rising 175 percent from US$3.2 billion in 2018 to $8.8 billion in 2020.
