Three
years of polemics about the necessity of developing a high-speed train abruptly
ended on Thursday evening when President Joko “Jokowi” Widodo called
Coordinating Economic Minister Darmin Nasution to indicate his decision not to
give a go ahead for the proposed development of the bullet train project.
The President signalled for the development of a
medium-speed train instead.The controversial high-speed train project
connecting the national capital of Jakarta and the West Java provincial capital
of Bandung, was initially meant to be part of the planned development of a
Jakarta-Surabaya high-speed railway track, the plan of which was introduced
during the presidency of Jokowi’s predecessor, Susilo Bambang Yudhoyono. The
feasibility study for the Jakarta-Surabaya network, including the
Jakarta-Bandung track, had been completed by Japan.
The high-speed train project turned into a polemic
after it was decided to also include China in the project through an open
bidding mechanism, following an offer made by President Jokowi during his
Beijing trip earlier this year. A memorandum of understanding (MOU) with China
— for its participation in the bidding process — was signed in April this year
on the sidelines of the organization of the 60th anniversary of the Asia-Africa
Conference. The “beauty contest” for the US$6 billion project was declared open
on Aug. 19.Throughout the process, Japan, with its shinkansen bullet train
technology, and China, with its own high-speed railway system, have made
detailed, comprehensive feasibility studies for building such a network. The
two countries had submitted proposals with relatively similar offers and the
two had offered loans to be paid back in 40 years with a 10-year grace period.
The interest rate Japan had offered, however, would
have been 0.1 percent, while the Chinese would have asked for 2
percent.According to its feasibility study, Japan was ready to begin
construction in 2016 and would have taken five years to build the system,
including a one-year trial operation period. Meanwhile, China said it would
start building in September and construction would be complete in three
years.The operation of the bullet train to connect Jakarta and Bandung was
expected to reduce travel time for the 150-kilometer route to about 45 minutes
from about three hours at present.Those were the conditional “technical”
aspects on offer if any of the two competing countries had won the bidding
contest.
Yet, the President eventually opted not to choose
either of the two and simultaneously abandoned the idea of the high-speed
railway network for the Jakarta-Bandung route altogether. On the other hand,
the President considered the medium-speed train as an answer to the demand for
an efficient intercity mass transportation system.
The President did not provide a thorough explanation
of his decision, but he apparently did listen to criticism about the
comparative advantages of the high-speed train system aired by a number of
senior analysts and observers. The most prominent one was the criticism offered
by Emil Salim. The minister of state for population and the environment during
the New Order government of Soeharto said pursuing such an ambitious high-speed
railway network project should not be a priority for the current government in
view of the existing problem of income disparity between cities and provinces
on Java Island and those outside Java.“There is a huge social gap between Java
and non-Java cities and provinces. The construction of the high-speed railway
network in Java will only heighten the gap,” Emil said.“The money [to be used
for the high-speed railway network construction] should instead be used for
programs to tackle the existing social problems,” he added.
Based on the financial evaluation of the medium-speed
train service, it has also been calculated that an efficient medium-speed rail
service would have a better value than the high-speed one as it can save up to
30 percent on overall costs if compared with the latter. And as it would only
take the medium-speed train about 10 minutes longer than the high-speed one,
the high-speed railway network has therefore become less competitive for
further development.
Another possible reason for the cancelation of the
bullet train project is undoubtedly the real condition of transportation
services from Jakarta to Bandung and vice versa. Such a short-distance service
as for the proposed Jakarta-Bandung railway network is not an urgent project to
pursue as the demand for rapid transportation is not as high as the more
sought-after one for long-distance service, such as the much farther
Jakarta-Surabaya network.
Also, the Jakarta-Bandung route is already served by
the equally efficient services of intercity buses, as well as the availability
of the Cipularang toll road that helps shorten the mileage for those traveling
in their personal cars. All of the above factors serve as a reliable reminder
that the proposed Jakarta-Bandung high-speed railway network is not a priority
for the central government.
Apart from those technical and financial
considerations, President Jokowi’s decision to pursue a medium-speed railway
network serving the Jakarta-Bandung route is apparently part of his face-saving
exit strategy amid the stiff rivalry between Japan and China for winning the
high-speed train project. Rather than opting to appoint one of the two as the
eventual winner, which will surely hurt, if not anger, the losing one, the
President was apparently smart in not doing so and launching an alternative
solution instead. Jakarta Post
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