An official says Indonesia has dropped its plan to construct a high-speed train line and instead will shift to more economical medium-speed technology.

Coordinating Minister of Economy Darmin Nasution said Friday that the high-speed service is not suitable for the relatively short distance of 150 kilometers (95 miles) between Jakarta and Bandung, West Java's provincial capital.

China and Japan had been competing to construct the high-speed rail system, each offering low-interest loans and other perks in an attempt to secure a multibillion-dollar contract.

Nasution said a team will create a framework for the construction of the medium-speed line before it is opened to international bidding.