Published By : 08 Oct 2015 | Published By : QYRESEARCH
Finally, after many weeks of uncertainties, speculation, and even temporary cancellations of the construction project, China has been appointed to construct the first high speed Indonesia rail. The bid between China and Japan, was won by China who will be now constructing a 150 km railway line connecting Bandung and Jakarta, supposedly the business center in the Western area of Java. Both, China and Japan, the biggest construction industries, were competing with each other for the US$5 to US$6 bn construction project, since China joined the bid in April 2015. There were many hiccups and dramatic developments in the project, before it was finally awarded to China.
Ministers from China and Japan presented many different options and views to the Indonesian government. Suitability of constructing a high-speed train in the area which is already being served by road transport and medium-speed train, was one of the topics of discussion. Minister Rizal Ramli, in a conference, gave preference to a medium-speed train over a high-speed train. China won the bid as they promised to build the railway track cheaper and faster that Japan. China proposed to complete the construction in three years compared to Japan who had proposed a five year construction plan. China earned an upper hand as they confirmed that the construction would begin within a month, immediately after signing the contract.
As far as finance is concerned, China has proposed to complete the construction with an amount of US$5.5 bn compared to Japan who had proposed an amount of US$6.2 bn. A dedicated project team from the China construction industry has already landed in Jakarta and is expected to start working on the rail construction project by end of 2015. This project has given an opportunity to China to strengthen their relationships with Indonesia through cooperation on production capacities and infrastructure facilities.