TEMPO.CO, Jakarta - Coordinating Minister for the Economy Sofyan Djalil, said that the extent of the Memorandum of Understanding (MoU) on the development of a high-speed railway between Jakarta and Bandung only covers the feasibility study of the project.

Djalil explained that the study aims to continue a previous study, which had been partially completed when Japan proposed a similar project under President Susilo Bambang Yudhoyono's (SBY) administration. "As such, we can roughly gauge which cooperation model would better benefit Indonesia," said Djalil at his office in Jakarta on Monday, March 30, 2015.

According to Djalil, the study - which will be jointly done with China - could help the government decide the future of the proposed high-speed railway project.

That said, the realization of the project might not even involve China. "There are many factors that we need to consider - and we will decide who to work with on this project at a later date, as soon as possible," said Djalil.

Previously, SBY's administration had been approached by Japan to develop a high-speed railway that will connect Jakarta and Bandung - wherein Japan offered a grant for a feasibility amounting to US$15 million or Rp 150 billion, which will be disbursed over two years. However, the former Coordinating Minister for the Economy at that time, Chairul Tanjung, declined the project because Japan wanted to be actively involved in the procurement of the trains.

Meanwhile, at the beginning of President Joko Widodo's government, he had stressed that his administration will focus on the development of railways outside of Java, and that the construction of the fast rail will be postponed for the time being.

However, during his bilateral visit to China last week, Jokowi's entourage is known to have signed a MoU that relates to the development of a fast rail link between Jakarta and Bandung.

The State-owned Enterprises (SoE) Minister, Rini Soemarno, is known to have signed the MoU, which was also signed by China's National Development and Reforms Commission.

KHAIRUL ANAM