Why Jakarta-Bandung Fast Train Needs to be Built

Suci Sedya Utami    •    Selasa, 06 Oct 2015 14:16 WIB
Why Jakarta-Bandung Fast Train Needs to be Built
This photo taken on August 13, 2015 shows Indonesian visitors looking at scale models of Chinese-made bullet trains on exhibition at a shopping mall in Jakarta. (Photo: AFP / Bay Ismoyo)

Metrotvnews.com, Jakarta: Government through the Ministry of State Owned Companies (BUMN) has decided to continue the development of Jakarta-Bandung high speed train with the scheme of business-to-business (B-to-B) between Indonesian state owned companies consortium and Chinese consortium. 

Minister Rini Soemarno explained the reason that the project needs to be continued, despite previously invited pros and cons for making China and Japan to compete in that project.

According to Rini, the high speed railway will be different than the regular one. With this high speed train available, it is hoped that the economy of the regions passed by the railways will be revived, as industries are hoped to develop.

"Since the government has decided the Jakarta-Bandung railway, it is because the economy needs improvement, especially on the regions previously cut off by the highway lines and have weakened economy," said Rini when met at the Parliamentary Complex, Senayan, Central Jakarta, Tuesday (10/6/2015).

Rini mentioned that the track will pass through regions, as the government selected the B-to-B scheme due to insufficient State Budget fund to run the project. Aside from that, the project is a commercial project given to the state-owned companies.

Rini added, since the government is unable to provide guarantees in any forms, then in between the two sides interested in the project, China was chosen as their proposal did not require any warranty.

"The high speed train partly passes through regions, so the government said b-to-b, no government warranty and no state budget. Therefore, from the two proposal, China was able to fulfill the requirements," explained Rini.


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