Jakarta –
PT Kereta Api Indonesia-China (KCIC) will increase its debt to the China Development Bank (CDB) to cover some of the high-speed train project costs. President Joko Widodo opened his voice about the plan to increase this debt.
When asked about the debt, Jokowi only said that the government would be pro or support mass transportation. This includes the Jakarta-Bandung fast train.
Fast trains and several other mass transportation, according to him, are a must to be made in big cities.
“We have to be pro for mass transportation, not pro private vehicles. While this is at IIMS. Pro mass transportation, called LRT, MRT, trains and fast trains, is a must for big cities,” Jokowi said on the sidelines of IIMS 2023 at JI Expo Kemayoran, Central Jakarta, Thursday (16/2/2023).
Jokowi also said that there must be integration of transportation between cities and within cities. This is done so that people tend not to choose to use private vehicles.
“This is so that modes of transportation are integrated within the city and from city to city so that people don’t tend to use the name private car,” said Jokowi.
The value of the cost overrun for the fast train itself has been agreed at US$ 1.2 billion or around Rp. 18 trillion. This number is larger than China’s previous calculations, but slightly smaller than Indonesia’s calculations through the Financial and Development Supervisory Agency (BPKP).
The cost increase for the high-speed rail project will be covered by depositing additional equity from the KCIC consortium and also adding loans to the China Development Bank (CDB). The portion, the addition of equity deposits to KCIC is 25%, the rest is financed by a loan from CDB.
The government itself has injected IDR 3.2 trillion in state equity participation (PMN) into PT Kereta Api Indonesia (Persero) or KAI to fulfill the Indonesian consortium’s equity portion in KCIC. KAI itself is the largest shareholder of the Indonesian consortium in KCIC, the railroad company can be said to lead the Indonesian consortium in KCIC.
According to calculations by the Deputy Minister of SOEs Kartika Wirjoatmodjo, it is possible that the additional debt owed to CDB amounts to US$ 550 million or around Rp. 8.5 trillion. This figure is obtained from the loan portion of 75 percent of the total cost of swelling US$ 1.2 billion.
Of that 75%, divided by Indonesia’s portion of 60% while China’s 40%. It was from there that the loan figure of US$ 550 million was obtained.
“The portion of the loan is around US$ 550 million and we are submitting it to CDB,” said the man who is familiarly called Tiko at the DPR Building, Jakarta, Monday (13/2/2023).
Also watch Video: KCJB Technical Train Wreckage Evacuated
(p/das)
