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China in line to build Indonesia high speed rail

China in line to build Indonesia high speed rail after Japan requirements rejected

China in line to build Indonesia high speed rail

JAKARTA, Indonesia (AP) -- China has emerged as the likely builder of Indonesia's first high-speed rail line after Indonesian officials rejected Japan's requirement for a government guarantee of loans.

China and Japan had been competing to construct the high-speed rail system, each offering low-interest loans and other perks as they vied to secure the estimated $5.3 billion high-profile railway contract.

The 150-kilometer (93-mile) Jakarta to Bandung high-speed line is part of 750-kilometers (466 miles) of new rail planned for Indonesia.

Indonesia's presidential chief of staff Teten Masduki said Wednesday that Japan lost out because its proposal was more about government-to-government cooperation. Indonesia required business-to-business cooperation without Indonesian fiscal spending or debt guarantees.

A spokesman for Japan's foreign ministry said the Japanese government had been informed of Jakarta's decision.


Updated : 2021-09-27 15:56 GMT+08:00