Indonesia Offers Surabaya-Malang Train Project to Russia

The Railway Directorate General expressed hope in a press statement here on Tuesday that Russia will continue the development of railway project in East Kalimatan, after Russian companies had expressed their interest earlier.

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[quote font_size=”18″]”The Ministry of Transportation has invited the Russian side to discuss the follow-up efforts on the railway development,” [/quote]Director General for Railways, Prasetyo Boeditjahjono, said.

Prasetyo said his ministry prioritized the development of the Surabaya-Malang railway project. To show its interest in the project, the Russian side has sent representatives to observe the project site and conducted surveys in the locations.

He said that the railway project was a commercial project that was directed to the Russian investors. However, the form of cooperation and the investment needed could not be revealed, as it was still in the negotiation process.

He added that the government was still focusing on considering the single track of the railway project.

In the meantime, the Indonesian government will give preference to Japan to build the Jakarta-Surabaya semi-high speed train project, Transportation Minister Budi Karya Sumadi last week.

“Japan will receive preference,” he said, after a coordination meeting at the Coordinating Ministry for Maritime Affairs, here on Friday.

Despite receiving the preference, Japan must continue to meet the qualifications set by the Indonesian government, Sumadi, one-time president director of state airport operator Angkasa Pura II, said.

He made it clear that at the coordination meeting with Luhut Binsar Panjaitan, Coordinating Minister for Maritime Affairs; Bambang Brodjonegoro, National Development Planning Minister/National Development Planning Agency (Bappenas) Head; and Sri Mulyani, Finance Minister, the government decided to expedite the construction of the semi-high speed train project.

The government will soon complete a plan for the construction of the semi-high speed train line and will discuss it with Japan in the next few months, he said.

Meanwhile, Bambang said at the meeting that the government still had to assess the semi-high speed train project.

[quote font_size=”18″]”We are still discussing whether the project will use an ordinary loan scheme, government project or private sector participation scheme,” he said.[/quote]