Leaving for Japan, Transportation Minister to strengthen cooperation in the transportation sector
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Bertolak ke Jepang, Menhub perkuat kerja sama sektor transportasi
28 February 2023
Jakarta - Transportation Minister Budi Karya Sumadi is ready to strengthen cooperation related to the development plan of a number of transportation infrastructure projects during his visit to Japan for two days, starting Tuesday (28/02/2023) to Wednesday (01/03/2023). A number of transportation projects that are ready for cooperation include Proving Ground construction project, Patimban Port, MRT Jakarta, and Jakarta-Surabaya semi high-speed railway.
“Indonesia and Japan have a bilateral relationship that has been going on well. I will also meet with Advisor to the Prime Minister of Japan, Mr. Masafumi Mori and a number of representatives from JICA, Toyota Tsusho Corporation, JBIC, Marubeni, and other business players in Japan. Let’s hope this brief visit can bring a positive impact to the efforts to strengthen cooperation between the two countries, particularly in the transportation sector,” the Minister said in his official statement in Jakarta, Monday (27/02/2023).
In his visit to Japan this time, the Minister will attend several meetings with government officials and business players in Japan. He will also attend an invitation from one of the largest trade associations in Japan, Keidanren, that will hold the Japan-Indonesia Economic Committee of Keidanren Event. The Minister is set to deliver his keynote speech at the event – the largest business forum in Japan – which will be attended by a number of business players that are members of the forum.
Aside from the Transportation Minister, Vice Chairman of the Indonesian House of Representatives/Coordinator for Industry and Development (Korinbang) Rachmat Gobel, Human Settlements Director General at the Public Works and Housing Diana Kusumastuti, and Deputy for Regional Development at the National Development Planning Agency (Bappenas) Himawan Hariyoga Djojokusumo will also speak at the event.
In his visit to Japan, the Minister is also scheduled to witness the signing ceremony of the loan agreement for Proving Ground construction project at the Motor Vehicle Roadworthiness Testing and Certification Centre (BPLJSKB), Bekasi, between the consortium that won the project, namely the Indonesia International Automotive Proving Ground (IIAPG) and the Governor of Japan Bank for International Cooperation (JBIC).
The international-standard Proving Ground project becomes a priority project that is cooperated between the two countries, and the construction is targeted to start this year. The presence of this facility is expected to be able to boost the competitiveness of the national automotive industry, improve the safety aspects in motor vehicles, support the acceleration of electric vehicle (EV) ecosystem realisation, and support the efforts to reduce motor vehicle emissions in Indonesia.
In addition to Proving Ground, a number of transportation infrastructure projects that will also be discussed during the Minister’s work visit include Patimban Port, the continuation of Jakarta Mass Rapid Transit (MRT) construction project, and Jakarta-Surabaya semi high-speed railway project.
MRT and Patimban
The Minister, in his previous visit to Japan, specifically on Wednesday (22/06/2022) already met with a number of Japanese government officials (G to G) as well as the private sector (G to B) with regard to the MRT project (North-South Phase 2 and East-West) and Phase 1-2 (Packages 5 and 6) of the Patimban Port project.
The Minister said he extends the opportunity for the Japanese government to provide their support again for Phase 3 of the MRT Jakarta project.
“With regard to the continuation of the MRT construction project, the government is pushing for a speedy completion of contract negotiation process and the funding commitment statement, and for a faster completion of the feasibility study for East-West MRT Jakarta project,” the Minister said.
In addition, according to the Minister, the Indonesian government is also inviting Japanese investors to participate in the construction and development of Transit Oriented Development (TOD) in the MRT station area.
“Regarding the continuation of the MRT project, we thank God that in the near future, one funding commitment from Japan is going to be signed. This is encouraging, as the MRT construction project can therefore continue to progress,” he continued.
According to the Minister, the government is planning to expand the MRT network to the East-West corridor along approximately an 84.1 kilometre route from Cikarang, West Java, to Balaraja, Banten. This plan gained a massive support from the UK Government. Through its Expression of Interest (EoI), the UK Government has expressed its financing commitment of US$1.2 billion or equal to Rp19.3 trillion for MRT Jakarta Phase 3.
“Our government is also extending cooperation offer to Japan in addition to the UK,” the Minister added.
Meanwhile, with regard to the Patimban Port, the government is pushing for a speedy completion of Patimban Port Phase 1-2 (Packages 5 and 6) development project bid negotiation process. The Transportation Ministry signed a working contract for Package 5 of Patimban Port Car Terminal Construction last year.
