Indonesia And China Agree To Carry On With High Speed Train Project

Jakarta (Antara Bali) - The governments of  Indonesia  and China agree to carry on with the controversial speed train project between Jakarta and Bandung.

"Not only in the high speed train project which is already underway, but also in other sectors," Cabinet Secretary Pramono Anung said after a meeting between President Joko Widodo and a Chinese government delegation here on Wednesday.

The two countries agreed on cooperation in  various sectors  also including in development of natural resources, energy  and infrastructure, Pramono Anung said.

Opposition against the development of the country's first speed train is growing including among legislators.

Deputy House Speaker Fahri Hamzah urged the government to stop the project, saying there are big risks  in the projects
Fahri cited  danger of  landslides that could damage the 142 kilometer track to be built crossing mountainous area between the two largest cities in western Java.

The project to cost around US$5.5 billion has been awarded to Indonesia-China consortium PT Kereta Cepat Indonesia China (KCIC).

The consortium groups China Railway International Co. Ltd., a subsidiary of China Railway Group Ltd. and Indonesian state owned firms Wijaya Karya, Kereta Api Indonesia, and Jasa Marga.

Construction of the project, however, stalled as the Transportation Ministry has yet to issue a building permit for the train due to a lack of required documents, as well as a disagreement over points in the concession agreement.

Analysts and legislators are also concerned about the Chinese-led consortium's proposal to ask for a government guarantee for the train project.

But, State-owned Enterprises Minister Rini Soemarno said  that the government would only provide legal certainty for the  project.

The consortium had never requested financial guarantee, Rini  said, adding that it only asked for the issuance of a legal basis for the long-term operation of the train.

She said it was normal for investors to request legal guarantees for long  term investment projects to guarantee their permits would not be revoked.

The project is built on business to business scheme  not involving   the government financially. (WDY)