Indonesia is pushing for faster progress on flagship infrastructure projects on which it is cooperating with Japan, but various issues have yet to be settled, including pricing.
Indonesian Transportation Minister Budi Karya Sumadi (R) inspects the LRT Palembang project in May 2018 (Photo: Indonesia's Transportation Ministry)
Jakarta (VNA) - Indonesia is pushing for faster progress onflagship infrastructure projects on which it is cooperating with Japan, butvarious issues have yet to be settled, including pricing.
Transportation Minister Budi Karya Sumadi met with top officials in Japan lastweek to discuss several projects, including the second phase of MRT Jakarta,the Makassar-Parepare railway, Patimban seaport and a vehicle roadworthinesstesting and certification facility (BPLJSKB) in Bekasi, West Java.
During his visit, Budi asked the Japanese government to adjust its bid pricefor the Jakarta MRT Phase 2 project, saying that the developer’s proposedprice was “too high”.
The Japanese Embassy in Indonesia said Tokyo is working with the JapanInternational Cooperation Agency (JICA) to help operator PT MRT Jakarta andother negotiating companies reach an agreement on the completion date andclose in on agreeable prices.
Japan’s Sumitomo Mitsui Construction Company won a contract to build part ofthe MRT Jakarta’s phase-two development over a 72-month schedule that startsthis month and ends in August 2027.
The Makassar-Parepare railway project, on the other hand, isproceeding as planned and nearing the financial close, according to Budi. Theconstruction work is divided into five stages, one of which is expected tobreak ground by the end of this year.
Meanwhile, Indonesia said it welcomed Japan’s interest in the public-privatepartnership (PPP) scheme for developing the BPLJSKB in Bekasi. The ministersaid that a Japanese company is participating in the project’s ongoingauction, without naming the company.
The Patimban Port project is almost complete, with the port slated tocommence operations in December.
During his visit, Budi also invited Japanese stakeholders to collaborate inthe construction of five seaports, including New Palembang Port in SouthSumatra, Gorontalo Port in North Sulawesi and Batam Port in Riau Islands. TheInvestment Coordinating Board (BKPM) data show that Japanese investment inIndonesia has increased significantly over the past three years, rising 175percent from 3.2 billion USD in 2018 to 8.8 billion USD in 2020./.
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Thai Permanent Secretary of the Ministry of Commerce Vuttikrai Leewiraphan Thailand's formal proposal will be substantial enough for the US to consider further detailed negotiations. He hoped for a tariff rate not exceeding 10% and suggested that the US might extend the negotiation period if an agreement is not reached by the July 8 deadline.
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Indonesian Transportation Minister Budi Karya Sumadi (R) inspects the LRT Palembang project in May 2018 (Photo: Indonesia's Transportation Ministry) 
