[JAKARTA] Japan must drop its requirement for government guarantees if it wants to stay in the race against China to build an Indonesian railway link from Jakarta to Bandung, a senior minister said on Friday.
"Japan's proposal includes a request for a government guarantee. Meanwhile China doesn't require that. That's the main difference," state-owned enterprises (SOEs) minister Rini Soemarno told reporters.
"So if Japan wants to stay in the process they must get rid of the requirement for government guarantees and government loan to SOEs."
Indonesia scrapped plans for the nation's first high-speed railway linking the two cities at the 11th hour on Thursday, but invited bidders China and Japan to submit new proposals for a slower line.