In an attempt to reduce costs, the Indonesian government is considering seeking bids from foreign governments to build a new railway on the island of Java, despite its current engagement with Japan for the project.
The planned train will run on a 750 km route between the capital city of Jakarta and Surabaya, Indonesia’s second-largest city. The plan is to drastically overhaul an existing state-owned railway and cut the travel time by more than half from the current 11 hours.
Previous plans to accept a yen loan from Japan for the project are reconsidered in favor of a public-private partnership, which does not increase the country’s debt. Tender plans drawn up by the ministry include conditions such as electric trains and the use of a PPP. But government officials are said to be still divided on the form the project will take and the final decision is up to the president.
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