Indonesia awards multi-billion-dollar railway project to ChinaStaff writer ▼ | October 1, 2015
Indonesia has selected China over Japan to build a new rail link because Beijing provided $5 billion in loans without asking for guarantees, an Indonesian official says.
Transport China promised a larger share of technology transfer
Indonesia initially envisaged a high-speed service for the 150-kilometre journey but changed its mind this month, opting instead for a medium-speed train.
Analysts said whoever won the bid could be a front runner for future rail projects in the region, including one linking Kuala Lumpur and Singapore.
Indonesian president Joko Widodo's administration preferred China's proposal because it was less burdensome and promised a larger share of technology transfer than Japan's. ■