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Indonesian president says enterprise ministry to decide on high speed railway bid

Xinhua, September 3, 2015 Adjust font size:

Indonesian President Joko Widodo said on Thursday that the country's Ministry of State Enterprises will decide whether China or Japan will get the contract for a high speed railway project in the Southeast Asia's biggest economy.

China and Japan have submitted proposals to the Indonesian government for the contract of the 150-km railway from Jakarta, capital of the country, to Bandung, the provincial capital of West Java, one of the most populated provinces in the country.

"High speed train is badly needed in Indonesia, but we will not burden the state budget and there will be no guarantee from the government. So I defer to the Ministry of State Enterprises to undertake it, business to business," Widodo said.

Coordinating Economic Minister Darmin Nasution on Thursday submitted a recommendation from ministers after weighing assessment by an independent consultant.

On Wednesday, Nasution disclosed that should Indonesia award the project to China, it will have a greater socio-economic benefit rather than giving it to Japan.

"If China (wins the bid) it has a greater socio-economic impact, " he said at his office after a meeting with ministers and the consultant.

Minister of State Enterprises Rini Soemarno said on Wednesday that China's bid would not burden the government budget.

"There is no burden on the government's (budget)," should China be awarded the project, she said.

Widodo, who came into office in October, plans to build massive infrastructures, including railways, to pursue an over 7-percent GDP growth at the end of his tenure in 2019.

However, as the budget for financing the projects is limited, the government is highly expected participation of investors. Endi