Saturday, 21 September 2019 11:45 GMT

Indonesia cancels USD5b high-speed train project

(MENAFN) Key Japanese and Chinese investors where extremely confused with Indonesia's 11th-hour decision to scrap plans for the nation's first high-speed railway, an investment that had China and Japan fiercely battle over it.

Tokyo and Beijing had petitioned heavily for the USD5 billion contract, and it was projected that whoever had won would have been the front-runner for future rail projects in Asia, including one joining Kuala Lumpur and Singapore.

Indonesia's president declared on Thursday that a bullet train between Jakarta and the textile town of Bandung was unnecessary, since it would never reach its maximum speed of more than 300 km per hour in between station stops.

"It was the recommendation from independent consultants that suggested to the government that a medium-speed rail was a better option because the cost is cheaper and the time of the journey isn't much longer," said the presidential chief of staff.

Indonesia cancels USD5b high-speed train project

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