FAJAR.CO.ID, JAKARTA—The public is highlighting funding for the Jakarta-Bandung Fast Train (KCJB) project which is said to require the country to pay installments of IDR 266 billion every month for 30 years to China.
Special Staff of the Minister of Finance for Strategic Communications, Yustinus Prastowo, denied accusations that the APBN was used to pay debts to China for the KCJB project.
It is known that this project became the public spotlight after officially operating on Monday (2/10).
Prastowo confirmed that the narrative circulating was wrong. He emphasized that the installment payments for the KCJB project were paid directly by PT Kereta Api Indonesia (KAI).
“This is wrong. Let me straighten out, those who entered into the loan contract for cost overrun were PT KAI and CBD. Who will pay in installments? Yes, PT KAI,” said Prastowo via his personal X account.
Debt payments to China for the KCJB project also come from PT KAI’s income, not the APBN.
“The source? From their income, including transportation contracts with PT Bukit Asam. So it’s not installments from the APBN,” he stressed.
Prastowo also ensured that there was a default risk mitigation strategy implemented, namely ring-fencing and first loss basis.
The APBN will not be used directly to pay debts for the KCJB procurement if PT KAI is unable to pay the installments.
“(If KAI is unable to pay the installments), the payment will not go directly to the APBN because there is still PT PII (Indonesian Infrastructure Guarantee) as a shield. “So we use a mitigation strategy with ring fencing and absorbing the first loss basis,” explained Prastowo.