Jakarta –
Development project Jakarta-Bandung High Speed Train experiencing cost overruns. The Indonesian government was finally asked to participate in financing the swelling.
The Chinese side working together to build fast car has requested that the swelling project be immediately financed by Indonesia. Then, will the government pay for the swelling of the high-speed train?
Spokesperson for the Coordinating Ministry for the Economy, Alia Karenina, said that it was true that China had asked Indonesia to share in the costs of the high-speed rail project. However, that does not mean the government will immediately agree to the request.
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Alia said that currently there are still discussions at the government level to ensure that the government’s steps are in accordance with applicable regulations.
“This request was not immediately approved by the government and discussions will still be carried out to ensure that if the government does indeed bear the burden of the cost over run, then it is in accordance with applicable regulations,” Alia said in her statement to detikcom, Sunday (31/7/2022) .
According to Alia, the Jakarta-Bandung high-speed rail project is expected to experience a cost overrun of up to Rp 16.8 trillion. “Reviews of the Financial and Development Supervisory Agency (BPKP) estimate that the cost overrun is US$ 1.176 billion or equivalent to Rp. 16.8 trillion,” he said.
Alia added that the Jakarta-Bandung high-speed train is one of the National Strategic Projects (PSN) and is an investment project between the Indonesian and Chinese consortiums through PT Kereta Api Indonesia-China (KCIC), and is funded by a loan from the China Development Bank (CDB).
Previously, the Deputy for Coordination of Regional Development and Spatial Planning at the Coordinating Ministry for Economic Affairs, Wahyu Utomo, stated that the China Development Bank (CDB), which is committed to funding the Jakarta-Bandung high-speed rail project, asked the Indonesian government to cover the cost overruns for the high-speed rail project.
Wahyu added, regarding requests from China, the Ministry of Finance will discuss the part of Indonesia’s obligations related to project development, not cost overrun.
“There is a request that this cost overrun be covered by the Indonesian government,” Wahyu said at a press conference at the Ali Wardhana Building, Central Jakarta, last Tuesday (26/7/2022).
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