【Jakarta jiji】Indonesia’s first subway, in which Japan was fully involved, delayed its business in the country of everyday affairs, reaching the goal of opening in March. While there is a strong sense that the construction has not been completed, there is a strong sense of rush, but the high-speed railway that China received an order has become a sight of Japanese brands while the completion of construction has been delayed by several years. Behind that, Japanese companies that have received orders receive a scream that “payment is delayed and they are in the red”.
Mass Rapid Transit (MRT) is a Japanese ODA loan project, and the construction cost for the client is paid by the Japan International Cooperation Agency (JICA). However, the payment requires the permission of the business owner “MRT Jakarta”, and according to several parties, “irrational payment has been squeezed” one after another.
As a result, many Japanese companies are forced to borrow money to pay for material and labor costs, and “interests are lost all over” and “any company is red.” Not only the main contractor, but also subcontractors were affected. There are companies that ask third parties for arbitration, and that there are companies that “offend the risk” and forbidding a bid for the second phase.