Indonesia rejects Japan's railway bid, China wins contract
Japan has lost an important contract to build a high-speed railway in Indonesia, after Jakarta announced China as the winner of the bid.
China and Japan had for several months competed to win the contract to build a new railway in Indonesia as part of the two biggest Asian economies’ effort to boost their influence across the region, AFP reported.
Indonesia had originally invited bids for the construction of the country’s first high-speed railway, which would connect the capital Jakarta to the mountain-fringed city of Bandung.
Jakarta, however, changed its plans unexpectedly this month and opted for a cheaper and slower option on the same route.
After Indonesia changed its plan, China and Japan submitted new proposals, but Japan's government spokesman, Yoshihide Suga, later announced that an Indonesian government envoy had told him Tuesday that Tokyo's bid had been rejected.
"Japan offered the best possible proposal," he told reporters, adding, "The envoy came here to explain that the Indonesian government has welcomed the Chinese proposal…. I can't understand that at all. I frankly told the envoy that it was extremely regrettable."
The official noted that China's new proposal did not involve the Indonesian government taking on any financial burden, or guaranteeing the project, adding, "It is an unthinkable proposal for our country."
The Indonesian government did not immediately comment on the decision, but State-Owned Enterprises Minister Rini Soemarno suggested the Japanese bid had lost.
"The government stressed that (the project) should not have government funding, nor a guarantee -- Japan's proposal asked for a government guarantee," she said.
The rail project is an important part of President Joko Widodo's drive to build more infrastructure as he pledged after his election in October to overhaul Indonesia's ageing roads, railways and ports.
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