China Asks the Indonesian State Budget to Swell the Cost of High Speed ​​Trains Page all

KOMPAS.com – China The Development Bank (CDB) asked the Indonesian government to share in the cost of the Jakarta-Bandung High-Speed ​​Train (KCJB) project. This is in line with the occurrence of excess costs or cost overrun in the construction of the high-speed rail project.

The Jakarta-Bandung high-speed rail project is experiencing cost overrun to US$8 billion or equivalent to Rp. 114.24 trillion.

The cost increased 1.9 billion US dollars or equivalent to Rp 27.09 trillion from the initial plan of 6.07 billion US dollars equivalent to Rp 86.5 trillion.

Deputy for the Coordination of Regional Development and Spatial Planning at the Coordinating Ministry for the Economy, Wahyu Utomo, said there was a request that State Budget the Indonesian government is also responsible for the cost of the Jakarta-Bandung high-speed train.

Also read: When Jonan Was Not Present at Jokowi’s Groundbreaking for the Jakarta-Bandung High Speed ​​Train and the Reasons

However, the Indonesian government could not immediately accept the request. This is because it still has to be discussed at the Ministry of Finance as the treasurer of the State Budget.

“There is a request because cost overrun this so that-cover by the Indonesian government. Regarding this, friends from the Ministry of Finance have just discussed what is part of our obligation to contribute to development, right? cost overrun,” explained Wahyu Utomo quoted on Wednesday (27/7/2022).

In addition, regarding the issue of cost overruns, we are still waiting for directions from President Jokowi whether the government will be able to contribute to the bailout.

Previously, President Jokowi had several times emphasized that the Jakarta Fast Train project was pure business to business (b to b) and promised not to use any state budget funds.

According to him, the government through the Coordinating Ministry for the Economy together with the Coordinating Ministry for Maritime Affairs and Investment continues to closely monitor this project.

Also read: The Shadow of China’s Loans in the Jakarta-Bandung High Speed ​​Rail Project

Physical construction construction progress Jakarta Bandung High Speed ​​Train also continues to be accelerated. Although admittedly, the completion target was delayed several times.

“Perhaps what is being worked on is at the depot. Construction of the high-speed train stations has also begun,” said Wahyu.

Hope the state budget

President Director of PT KAI (Persero) Didiek Hartantyo said that the completion of the Jakarta-Bandung high-speed rail project was threatened with delays, so that the completion of the project was postponed.

Didiek said that the completion of the Jakarta-Bandung high-speed rail project could be delayed if PMN did not disburse and followed the depletion of cash KCIC until next September.

Also read: The Fast Train Doesn’t Reach Bandung City, How Many Interested?

“Yesterday it was in a thorough discussion and will be given support and if this doesn’t happen in 2022, it has the potential that the completion of this fast train will be hampered too, because cast flow The KCIC will last until September so it hasn’t gone down yet then cost overrun This June 2023 will be threatened with resignation,” said Didiek at a meeting of the House of Representatives Commission V.

Didiek also said that the problem with the Jakarta-Bandung high-speed rail project started with the contractor. Then, in 2019, the high-speed train project was hampered due to land acquisition.

“This is extraordinary, at that time, PT KAI was asked to enter, but it was only with the issuance of Presidential Decree 93 of 2021 yesterday that trains have really become lead sponsor from this fast car,” he said.

Furthermore, Didiek said, the initial cost of completing the Jakarta-Bandung high-speed rail project was US$6 billion.

Also read: The complexity of the fast train and Jonan’s objections when he became the Minister of Transportation

However, his party calculated that there were cost overruns consisting of land acquisition, EPC, route relocation and other costs.

“Since the beginning of this land acquisition, between 100 million US dollars to 300 million US dollars, this EPC is also large at 600 million US dollars to 1.2 billion US dollars. financing cost himself,” he said.

(Author: Yohana Artha Uly | Editor: Akhdi Martin Pratama)

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