Jakarta –
PT Kereta Api Indonesia China (KCIC) opens its voice regarding the construction costs Jakarta-Bandung high-speed train (KCJB), which swelled from US$ 5.573 billion at the start of construction in 2016, to US$ 7.97 billion. Swelling of costs has occurred several times.
PT KCIC Corporate Secretary Mirza Soraya explained that the issue was still under discussion with the KCIC consortium, namely the four SOE sponsors consisting of PT Wijaya Karya Tbk, PT Jasa Marga Tbk, PT Kereta Api Indonesia (KAI) and PTPN VIII, as well as providing loans or lenders. namely the China Development Bank (CDB).
“On this issue, it is still in discussions with sponsors and lenders,” he said in a written reply to detik.com, Friday (3/9/2021).
Until now, he continued, matters relating to cost overruns and negotiations have been discussed by the Indonesian government and sponsoring SOEs.
He further explained that the cost overruns that occurred were used for land acquisition, social/public facilities relocation work, variation order work, financing costs, and other work that had to be done for project needs.
“If cost overrun If it is not paid, it will hinder the progress of work in the field, considering that cost overrun occurred due to the escalation of land acquisition work, relocation of social and public facilities, variation orders, financing cost or escalation of other work that is indeed a project need,” said Mirza.
To anticipate that the development costs will not swell again or at least minimize the swelling, KCIC is trying several things.
“Attempt to return project cost at a stage that is and will be implemented forward to return to initial budget,” he explained.
Furthermore, changing the operation maintenance readiness scheme (operation and maintenance readiness), where operation & maintenance HR uses most of the experienced PT KAI employees, prioritizing training in Indonesia and online, so as to save on training costs and readiness for other operations and maintenance.
Next, negotiate a facility agreement with lenders and negotiate with contractors regarding several project cost issues, carry out value engineering in several ongoing construction works, and delay the construction of TOD Walini.
“We will make maximum efforts so that the nominal cost overruns can be optimally reduced. In general, we can say that the spirit is efficiency and the involvement of local human resources as much as possible. So we changed the operation maintenance readiness scheme by using operation & maintenance HR using most of the PT KAI employees,” added Mirza.
(toy/eds)
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