Japan Asks Indonesia to Establish SOE for Bullet Train Project
12 April 2015 08:06 WIB
TEMPO.CO, Jakarta - After conducting feasibility studies for the bullet train project in Indonesia, Japanese investors suggested the Indonesian government to establish a state-owned enterprise specially to handle the advanced transportation mode.
Deddy Priatna, the deputy of Facilities at the National Development Planning Ministry, said on Friday, April 10, 2015 that Japanese investors saw the huge potential of bullet train business in Indonesia, and it would need to be managed under different management from PT Kereta Api Indonesia.
“But the government would make the call whether it should be under PT KAI management [or otherwise]. During the first phase of the feasibility studies, Japanese investors wanted a new SEO since it will be a huge business,” Deddy said.
According to Deddy, the first feasibility study showed that the bullet train routes, connecting Jakarta and Bandung, could be extended to Cirebon, Semarang and Surabaya. The route extension to Cirebon was aimed at integrating it with Kerajati Airport in Majalengka.
Based on the first feasibility study, the project will cost Rp60 trillion (US$4.6 billion) that will be covered by the government, the SOE and private companies.
ANTARA NEWS