"Numerous foreign and national banks have an interest to finance the railways sector, and this shows that rail transportation is very profitable," the minister informed newsmen after opening the Indonesian Railway Society National Work Meeting here on Saturday.
The transportation minister remarked that the development of rail infrastructure needed major funding and absorbed a significant amount of state budget, so a better solution is needed for development.
He said the government remained consistent in continuing to develop an effective mass transportation system, and rail transportation is considered a solution.
"In the long term, the railways will become an appropriate means of mass transportation to reduce road traffic density," Sumadi noted.
The minister pointed out that private parties from Japan have expressed high interest to be involved in the development of a high-speed train network connecting Jakarta and Surabaya.
Despite involving foreign private parties in the development of the high-speed train network, the minister remarked that the government is keen on the use of local content in the development of the train network.
"Similarly, in the process of development, the government wants to involve several local workers," the minister of transportation stated.
Sumadi noted that the rail development work offered to private parties is not only centered in Java Island and for human transportation only but also offered outside Java and for logistics transportation.
Reporting by Ahmad Wijaya
(O001/INE)
(T.SYS/B/KR-BSR/O001) 21-07-2018 12:43:10
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Editor: Fardah Assegaf
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