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Indonesian and Chinese firms in rail negotiations

Updated: Oct 3,2015 9:10 AM     Xinhua

An Indonesian minister said on Oct 1 that negotiations are underway between Indonesian and Chinese consortiums to build a high-speed rail system linking Jakarta and Bandung, capital of West Java province.

Speaking at a news briefing, Rini Soemarno, Indonesia’s minister for State-owned enterprises, said the consortiums are expected to reach an agreement about the joint venture later this month.

The consortiums are in negotiations to finalize all aspects of the project, she said, emphasizing that the project would not be funded by the Indonesian government.

“The president has decided that this project cannot be financed by the state budget or guaranteed by the government. The Indonesian government is now concentrating on building rail transportation systems in Sumatra, Kalimantan and Sulawesi. So, no government money will be used to finance the project,” the minister said.

According to Rini, trains on the proposed Jakarta-Bandung route are expected to hit speeds of 200 to 250 km per hour. “But that will depend on the results of the negotiations,” she said.

The express service would pass through four stations, one in Jakarta and three in West Java province, Rini said. She added that one of the stations will be in Walini, an area in West Bandung designed as a new tourism center in West Java.

The project, which is expected to be completed within three years, will cost about $5.5 billion.