The Jakarta Post reported that transportation minister, Mr Budi Karya Sumadi, said Jica was undertaking a comprehensive feasibility study into the line, which would take two years to construct.
The project would involve building a new line from Jakarta to Semarang, as well as upgrading the existing line between Semarang and Surabay. The project is expected to cost Rupiah 90 trillion ($US 6.3bn), but Sumadi said the government is trying to keep costs below Rupiah 60 trillion.
Jica would provide a loan to fund the project, while the government would provide the land.
The line, which would connect both ends of the island of Java, would have a maximum speed of 160km/h, and would connect the two terminal cities in less than six hours.
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