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Indonesia delays announcing winner of high speed rail bid
Published in The Saudi Gazette on 03 - 09 - 2015

JAKARTA — Indonesia has delayed the announcement of the winner of a hotly contested race between China and Japan to build the first high-speed railway in southeast Asia's biggest economy, a senior government official said on Wednesday.
The two Asian giants have repeatedly sent high-level envoys to lobby the Indonesian government in what has been an unprecedented battle to build the 150-km link between the capital, Jakarta, and the textile hub of Bandung.
President Joko Widodo had previously been expected to announce a winner as early as this week. But Cabinet Secretary Pramono Anung said Widodo planned to make a decision based on a review of the two countries' proposals by an independent consultancy and a team of Cabinet ministers.
“The president has extended the time for the review until Sept. 7, so that the process is fairer,” Anung said, adding that the announcement of the winner could come any time after that.
Two government sources have said Indonesia is leaning toward awarding the multibillion dollar contract to China because its proposal is seen as “less financially burdensome.”
Indonesia's state enterprises minister said that if China were to win the contract, state-owned companies PT Wijaya Karya, PT Jasa Marga, PT Kereta Api, and PT Perkebunan Nusantara VIII would be involved in the consortium with China.
“There is truly no burden on the government,” the minister, Rini Soemarno, told reporters on Wednesday. Japan competes with Singapore as Indonesia's top investor in Indonesia, while China is the Southeast Asian nation's biggest trading partner. — Reuters


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