China won the bid over Japan to build the first railway line at high speed in west Java. The government hopes a boost to the economy. Experts weigh on the project.
ambitious plan of President Joko 'Jokowi' Widodo to improve Indonesia's infrastructure could boost production and create hundreds of thousands of new jobs in the archipelago. Now, Indonesia is embarking on a new path for the development of infrastructure by signing an agreement with China last month to build the first high speed railway nation.
The president of the national company China Railway International, Yang Zhongmin, inked the agreement with President Director of a consortium of Indonesian companies of the State, PT Pilar Sinergi to form a joint venture and get the current construction. The joint venture consists of the local construction company PT Wijaya Karya, PT Kereta Api railway operator Indonesia, road builder PT Jasa Marga toll and plantation company PT Perkebunan Nusantara VIII.
The mass is scheduled for November 9 break The high speed train is set to reach eight stations across 150 km between Jakarta and Bandung. The train will travel at 250 kilometers per hour, and the ticket price will be around Rp.200,000 (US $ 16) when the project is completed in 2019.
Train Indonesian | Photo courtesy Prayitno
A travel regularly by train from Jakarta to Bandung costs of approximately US $ 8 and takes over three hours. The railway is set to be a part of 750 kilometers of new railways planned in the Jokowi Infrastructure Plan.
"The train will be the first of its kind, not only in Indonesia but throughout Southeast Asia. It will help relieve traffic congestion, to advance the commercial development and social growth -economic and facilitate the formation of an economic corridor Jakarta-Bandung, "said Chinese Ambassador to Indonesia, Xie Feng. "As for China, this is his first high-speed rail project abroad using Chinese technology, standards and equipment. It is the first project to be jointly designed, built, operated and managed by China and its partners. "
Indonesia holds a 60 percent in the project, while China holds the other 40 percent. Bank-owned China State Development will provide 75 percent financing at an estimated cost of US $ 5.5 billion, with the remainder from the Chinese railway company and the Indonesian consortium.
The railway line will not need funding from the Indonesian government, or a government guarantee. One Indonesian officials gave reasons for rejecting the candidature of Japan was that require government funding.
"The government will not give any guarantee for the project. We do not believe that this agreement [will] go by default, but if it happens, the bank will take mitigation measures, not the government, "said Pilar PT Sinergi BUMN Indonesia President Sahala Lumban Gaol.
the consortium has been 40 years for China's society will not leave, even if the default of the project before the deadline. "China will not leave until all debts are paid. We have not put any collateral in this project, "said Gaol.
During the construction phase, the joint venture will use as many Indonesian materials, machinery and equipment as possible. It will also hire as managers, technicians and local workers as possible.
"cooperation agreements Furthermore, the two sides signed on staff training, local production and technology transfer. Both of us agreed to jointly explore other markets, particularly in Southeast Asia. Now, this golden autumn of October, they can finally reap the rewards of their hard work, "the ambassador Xie.
Specifically, the project will use local materials to 50 percent, said Minister Rini Soemarno consortium. She added: "The project will also hire 39,000 new local workers, while most of the aluminum will be local production"
With a strong involvement of companies belonging to the State of Indonesia. the project will be able to buy land for the road with a new law that sets deadlines for the acquisition of land. Until now, land acquisition was a major obstacle to most infrastructure projects in the country, and has scuppered previous plans to build railroads on the islands of Sumatra and Borneo. the project can also use land from an existing toll road . Bandung
for Indonesia, projects of this kind are necessary for the country lacks adequate infrastructure - both in quantity and quality - often causing logistical expenses rise sharply. As Indonesia requires funds for infrastructure development over the next four years about a value of $ 416.5 billion, the government will rely heavily on private sector participation.
According PT Wijaya Karya President Director Bintang Perbowo, the development of high speed rail could create new residential areas around transit with a plan that integrates with the railroad. "With these new areas being opened, people will choose to live there. There will also be the development of new cities, as Walini "said Perbowo, adding that the cities located near the station should be accessible to more quickly after opening.
Walini is a city hill near Bandung, and used as a tea producing area. However, in recent years it has become unproductive. the area should be used as a business center and residential area in the future. Some parts of Walini involved in the project belong to PT Perkebunan Nusantara VIII. the state company also pin hopes on accelerated development in Karawang, which is already known as an industrial area.
While the Government believes that the fast train scheduled bring many benefits to the public, some experts expressed concerns and doubts about the project.
Nico Harjanto, executive director of Jakarta-based pollster Populi Center, said the project differs clearly against Jokowi's promise to focus on the development of infrastructure much needed in regions outside Java, an island that has railway from east to west.
"Where is this high-speed train to be built? From the station Gambir in Jakarta? Why the project still focus on the capital? In fact, this project is necessary for political reasons in order that the next elections in 2019, there is something new [from Jokowi], "said Harjanto.
Ilham Malik, an expert in public policy from the University of Bandar Lampung center for regional policy studies, meanwhile, expressed skepticism about the effectiveness of the railway due to a lack of public transport in both Jakarta and Bandung.
"Maybe this railway will attract tourists. Today, people who wish to travel from Jakarta to Bandung and vice versa are served by planes, trains, […] bus and private vehicles, "he said. "If Indonesia wants to build the high-speed train, the administration must build interconnected public transport [also]. If the train depends only on private vehicles, it will not prosper."