The Fast Train Project Faces New Problems, Reportedly Operations Will Delay From August

Illustration (Photo: Doc. Antara)

JAKARTA - The Jakarta-Bandung high-speed rail project is facing new problems. The reason is, it is reported that the operation of the high-speed train connecting Jakarta and West Java will be delayed.

Citing from Reuters, in internal documents, the Indonesian Ministry of Transportation and three consultants have rejected a consortium plan to start a full commercial operation of the US$7.3 billion high-speed rail project in August.

Still citing Reuters, it was explained that the project was facing new problems. Where Chinese consortium participants requested a full operational feasibility certificate for the line even though the station was incomplete.

In contrast, the transport ministry and consultant Mott MacDonald, PwC and local law firm Umbra have suggested that full commercial operations could begin in January 2024. This is based on a progress update report dated May 14.

"There is a risk that commercial operations targets in August could be delayed to complete all constructions by December 31," the report reads, citing Reuters, Thursday, June 8.

Meanwhile, Indonesia is negotiating with China for an additional USD 560 million loan and asking for a 2.8 percent interest rate for the loan portion in the yuan, which is lower than the China Development Bank (CDB) offer of 3.46 percent. This is according to documents dated May 18.

He explained that the possibility of further delays and other details in the two documents had never been reported before.

Deputy for Investment and Mining Coordination of the Coordinating Ministry for Maritime Affairs and Investment, Septian Hario Seto said, debt negotiations are being carried out with the CDB. He said he focused on interest rates.

Seto said the train plans to start free trials with passengers in mid-August.

Then the paid trip is expected in September and the unfinished station is likely to be completed in November.

However, PwC declined to comment. The Chinese-backed consortium PT KCIC, Mott MacDonald, Umbra, CDB and the Chinese embassy in Jakarta did not immediately respond.