The government is seeking offers for the construction of a railway linking Jakarta with the Soekarno-Hatta International Airport in Cengkareng, Banten, after the previous winner failed to start construction, an official said Friday.
"As decided at a coordinating meeting at the vice presidential office, the Transportation Ministry will repeat the bidding process," said state minister for state entrprises deputy for tourism and logistics Harry Susetyo.
The process has to be repeated because technical issues have stalled the project.
Harry said the project managers, state-owned airport operator PT Angkasa Pura II and state railway operator PT Kereta Api, failed to find an ideal solution.
Previously, the office of the state minister for state enterprises had facilitated a meeting with both firms to discuss the technical issues.
The 30-kilometer railway will connect the airport to Manggarai railway station in South Jakarta passing through Dukuh Atas and Muara Angke areas.
It is estimated the project will cost Rp 2.2 trillion (US$239 million). The railway is expected to be operational by 2009.
The railway is deemed necessary as the main toll road linking Jakarta to the airport is often flooded during the rainy season and by tidal waves.
Both state firms established a joint-venture company, PT Rail Link, to build the railway. The company, however, was unable to secure funding from state banks Bank Mandiri and BNI as well as private Bank Mega.
A similar railway is planned to connect North Sumatra's Kuala Namu Airport with provincial capital Medan, and West Sumatra's Minangkabau International Airport with provincial seat Padang.