The contract is for the construction of the tracks and high speed train the class of Shinkansen, Minister for the National Development Planning Andrinof Achir Chaniago said.
The government has set up a team of consultants to look into the feasibility studies prepared by Japan and China, Adrinof said after a meeting with a Chinese delegation of 11 senior official;s led by Minister for National Development and Reform Commission Xu Shaoshi here on Tuesday.
"We will considered all aspects including inputs from outside," he said.
Among the aspects to be considered in naming the winner of the contract include the commercial value of the project, the track record of the prospective partner (contractors), the contribution of the government in the project , commitment in employment of local workers and the use of local content.
The result of feasibility study by China was already handed over to President Joko Widodo on Monday.
Based on the Chinese feasibility study , the project would cost around US$5.5 billion (Rp74 trillion) including for the construction of track and express train .
Andrinof said China pledged to start work in September 2015, and construction will take three years or to be completed in 2018.
He said China does not ask for contribution in investment by the Indonesian government through state budget and guarantee for the investment.
"China offers an annual interest rate of two percent for 40-year loan with a grace period of 10 years," he said. .
He said he could not yet give data about the Japanese feasibility study as the renewal of previous proposal is yet to be received .
The first phase of the Japanese feasibility study was handed over to the government in April 2015.
According to the National Development Planning Board (Bappenas) based on the Japanese feasibility study the project would cost Rp60 trillion.
The Japanese asked for the governments contribution of 16 percent of the total investment and the establishment of a special state company for high speed train. (*)