The government has now decided that it must be carried out based on a business-to-business (B2B) scheme through a consortium.
Jakarta (ANTARA News) - State Enterprises Minister Rini Soemarno reiterated here on Tuesday that the Jakarta-Bandung railway project will not use the state budget and a government guarantee.

"The fast railway project will not use the state budget and a government guarantee," she stated at the state palace compound.

She remarked that Japan had indeed sought a government guarantee and a payment made through the government, which meant using the state budget.

"The government has now decided that it must be carried out based on a business-to-business (B2B) scheme through a consortium," she affirmed.

"The state-owned companies would review who could invest or whether it could be carried out," she said.

Besides Japan, China has also submitted a proposal for the project.

Teten Masduki, the presidential chief of staff, had earlier noted that the project is not a government project, and its implementation has been fully referred to state-owned companies.

He remarked that the project requires commercial study, which will be conducted by domestic or international state-owned companies.

He pointed out that the project would also not require a presidential decree as it would be a B2B scheme.

"The Japanese government had earlier proposed a government-to-government (G2G) scheme, and as this project has become a B2B project, Japan will not take part in it," he added.

Teten said that Japan currently has several projects in Indonesia, including the Mass Rapid Transport project.(*)

Editor: Heru Purwanto
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