Japan Approves Jakarta-Surabaya Railway Project, Minister Says  

TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan said that Japan has approved the Jakarta-Surabaya medium-speed railway project financing scheme under the private-public partnership (PPP).

"We decided to go with the scheme so that it won't burden the State Budget," Luhut said in Jakarta last week.

According to Luhut, the public-private partnership scheme was suggested by the National Development Planning Agency head Bambang Brodjonegoro. Based on a calculation made by the Japanese government, as much as Rp 102 trillion (US$7.8 billion) is necessary to complete the project. However, the Indonesian government estimated that the project could be realized with Rp 80 trillion (US$6.1 billion).

The Transportation Ministry and state railway company PT Kereta Api Indonesia (KAI) have completed the preliminary study for the project. The government decided to use electrical system for the medium-speed railway project.

Luhut revealed that the medium-speed train could travel as fast as 160 kilometers per hour, that could shorten the travel time from Jakarta to Surabaya to five hours.

Earlier, the government claimed that the land acquisition for the Jakarta-Bandung high-speed railway project was almost completed. Consortium PT Kereta Cepat Indonesia-Cina (KCIC) was asked to acquire a 650-hectare land worth at least Rp 4 trillion (US$307 million). The land acquisition issue had hampered the loan application with the China Development Bank (CDB). The project is estimated to worth US$ 5,13 miliar.

ANGELINA ANJAR SAWITRI | GHOIDA RAHMAH