Jakarta (ANTARA News) - The feasibility study on the Jakarta-Surabaya semi speed train project will be wrapped up in November, Transport Minister Budi Karya Sumadi has said.

The feasibility study by Japan International Cooperation Agency (JICA) is to be completed in November, Budi Karya said here on Tuesday.

The feasibility study concerns three main points - the price that has to be more economical, local content that has to be higher and the numbers of foreign and domestic contractors that have to be proportional, the minister said.

"We think first about the price of the technology to be used; second about component to be used with priority given to local components, and third, about contractors that the numbers have to be proportional between foreign and local contractors," he said.

The Transport Ministry has said it hoped the project would not cost more than Rp60 trillion.

Earlier, the minister said the biggest factor determining the implementation of the project is fund.

He said the government does not want that the project is wholly financed with fund from the state budget.

He said he expected participation of the private sector through a cooperation scheme between the government and private companies (KPBU).

He cited the Makassar-Pare-Pare railway project in Sulawesi is built under the KPBU scheme.

The original plan was that the project was entirely financed with soft loan from Japan. The loan was for 40 years with an annual interest of 0.5 percent and a grace period of 10 years, he said.

The total investment was around Rp60 trillion , but the calculation was not yet final, he said.

"It is alright even if the implementation has to be put off provided that the cost could be lower and only partly with state budget fund. It would be better," he said.

He said he had yet to communicate with Japan Bank for International Cooperation (JBIC).

"We also want to move fast but we have to be efficient," he said.

Reporting by Juwita Trisna Rahayu
Editing by A Saragih, Rahmad

Reporter: Antara
Editor: Fardah Assegaf
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