Railways: China to work on Surabaya high-speed railway
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.
Bisnis Indonesia - Perkeretaapian: China garap KA cepat Surabaya
1 November 2023
By: Lorenzo A. Mahardhika & Hendra Wibawa
Jakarta - The State-owned Enterprises (SOE) Ministry is providing an opportunity for China to extend Jakarta-Bandung high-speed railway’s route to Surabaya.
SOE Deputy Minister Kartika Wirjoatmodjo explained that China would extend the high-speed railway route as an agreement has been signed between China and Indonesia recently.
“Yesterday, we came back from China where we signed an agreement to conduct a joint study with China Railway,” he said during the press conference for Aquabike at the Coordinating Ministry for Maritime Affairs and Investment in Jakarta on Tuesday (3/10).
However, Kartika is reluctant about revealing the investment value of the extension of the high-speed railway route to Surabaya.
He also did not mention the amount of interest agreed on for work on the project.
The SOE Ministry’s step to provide an opportunity to China to work on the high-speed railway extension to Surabaya is in line with the statement of Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan.
Luhut mentioned that China has offered a far cheaper loan interest rate for Jakarta-Surabaya high-speed railway project.
“Mr. Jokowi wants Jakarta-Surabaya high-speed railway to be continued. I heard that the agreement with China has been established, and the interest rate is far cheaper than the interest rates offered by other countries,” Luhut said.
Meanwhile, Indonesia Transportation Society (MTI) Regional Strengthening and Development Deputy Chairperson Djoko Setijowarno disagrees with financing the extension of the high-speed railway to Surabaya using the state budget (APBN).
“Please continue the high-speed railway project to Surabaya, but I do not agree with using the APBN,” Djoko said to Bisnis.
He stated that it would be unfair for citizens in remote areas, such as Merauke or Maluku, to use the APBN to extend the high-speed railway to Surabaya.
Most citizens in remote areas and villages also need subsidised mass transportation to reduce transportation costs.
