Jakarta: Indonesia revealed on Tuesday the rationale behind its decision to procure electric trains from a Chinese firm, citing a more competitive price offered by CRRC Sifang Co Ltd compared to bids from Japan and South Korea.
However, the selection was not solely based on price considerations.
Anne Purba, the corporate secretary of the state-owned railway company Indonesia Commuter Train (KCI), said the trains manufactured by CRRC meet the technical specifications required in Indonesia.
“The majority of trains built in Korea are made of aluminum, while we require stainless steel,” Anne said in a news conference at Juanda Train Station in Central Jakarta.
CRRC presented the most affordable offer at Rp 783 billion ($49.7 million) for three sets of trains, according to Anne. However, she did not disclose the proposed prices from Japanese and Korean competitors.
“It’s certain that the other manufacturers submitted higher prices after adjusting their previous proposals concerning technical recommendations and financing,” she added.
In addition to the competitive price, the Chinese manufacturer agreed to customize the air conditioning system and seat configurations to meet the specific technical requirements in Indonesia.
