Indonesia plans to build a high-speed rail link between the capital Jakarta and second city Surabaya, despite scrapping a shorter line, according to a presidential palace statement released on Friday.
Indonesia abruptly cancelled late on Thursday plans to build a high-speed railway from Jakarta to the closer textile town of Bandung, inviting bids instead for a medium-speed railway between the two cities.
"At this time, the government is preparing to develop a high-speed train from Jakarta to Surabaya and a rail network outside Java," the presidential office said in a statement.
China and Japan had been engaged in an unprecedented bidding war for the multi-billion dollar project in Southeast Asia's biggest economy, but were left confused after it was pulled in what appeared to be the latest in a series of regulatory flip-flops under President Joko Widodo.
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