Xi urges Widodo to help keep Sino-Indonesian rail project rolling
The near-derailment of the Jakarta-Bandung joint ventures offers valuable lessons for Chinese companies heading abroad, analyst says
President Xi Jinping urged his Indonesian counterpart Joko Widodo to ensure a smooth roll-out of the US$5.1 billion joint-venture Jakarta-Bandung high-speed railway as the two leaders met in Hangzhou on Friday ahead of a Group of 20 summit.
The meeting comes two weeks after Indonesia scuttled 71 impounded foreign vessels, including three from China, a move seen as a tough response to Chinese claims that waters surrounding the Natuna Islands are part of traditional Chinese fishing grounds.
But Xi focused on positives, saying China and Indonesia shared “broad common interests” and would expand cooperation on infrastructure, productivity, trade, investment, finance and e-commerce, to establish “more flagship projects”, state-run Xinhua reported.
Xi said bilateral relations were on a good path and China would “firmly support the unity of the Association of Southeast Asian Nations”, the report said.
Xi’s call over the rail project highlights problems in economic cooperation between the two countries.
The landmark scheme was halted in January after the Chinese partner failed to submit documents for approval. It finally received all its permits late last month but questions have mounted over its 2019 completion date.