Beijing (ANTARA News) - Indonesia and China have held follow-up talks on a plan to develop a fast train network in Indonesia, including the joint production of export-oriented train coaches.

"We held follow-up talks to discuss various matters relating to the plan to build a fast train network. We hope that an agreement would soon be reached, so that the project would be developed immediately," State-owned Enterprises (SOE) Minister Rini Sumarno informed ANTARA here on Wednesday night.

The minister made the statement after witnessing the signing of a loan agreement between Chinese Development Bank (CDB) and three Indonesian banks: Bank Mandiri, Bank BNI, and Bank BRI.

She affirmed that China might accept the conditions proposed by Indonesia to build the fast train network wherein the development of the project would purely be carried out on a business-to-business (b-to-b) basis without a government guarantee and without utilizing funds from the state budget.

"They even agreed to take part in the development of its stations through a transfer of technology. As it is to be carried out on a b-to-b basis, it should benefit us, including the technological transfer," noted Sumarno.

Regarding the technological transfer, she remarked that China agreed to provide training to Indonesians, regardless of whether it sends experts to Indonesia, or our experts go to China for training.

The minister revealed that China also agreed to jointly manufacture coaches not only for fast trains but also for electric and light trains.

"The coaches manufactured jointly could be exported, so that it would also provide income to the state and boost employment opportunities," Sumarno affirmed.

With regard to the plan to jointly manufacture coaches, China has agreed to develop an aluminum factory in Indonesia.

"So, China has agreed that the raw material bauxite used for producing aluminum should be processed into a finished product before being exported. If the aluminum industry is developed, it means that we will be able to make aluminum slabs as the raw material to build coaches though this cooperation," stated the minister.

She said that various agreements will therefore be discussed intensively, so that several projects related to the fast train development plan could be implemented soon.

"Once the agreements are reached, the projects could soon be implemented and would offer jobs to around 40 thousand workers. If the fast train network is built, for instance, on the Jakarta-Bandung route, we hope the economies of the cities along the fast train lines such as Karawang and Walini would be boosted, and the peoples welfare would be improved," she emphasized.

Sumarno noted that for implementing the project, her ministry has formed a consortium, which includes PT Wijaya Karya, PT Jasa Marga, PT Perkebunan Nusantara VIII, and PT Inka, among others.(*)

Editor: Heru Purwanto
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