Government Guarantees Fast Train Debt, Deputy Minister Tiko: Loan Interest To China Is Around 3-3.5 Percent

Deputy Minister of State-Owned Enterprises (BUMN) Kartika Wirjoatmodjo. (Mery Handayani/VOI)

Deputy Minister of State-Owned Enterprises (BUMN) Kartika Wirjoatmodjo revealed that the cost overrun or cost overrun for the Jakarta-Bandung High Speed Rail (KCJB) project is in the range of 3 to 3.5 percent.

Previously, the Indonesian and Chinese consortium agreed on the total cost of the high-speed rail project of US$1.2 billion or around Rp. 18.2 trillion.

Of this total, 560 million US dollars is the debt from CDB to the Indonesian consortium.

Meanwhile, USD 640 million was borne by a Chinese consortium. In addition, China also asks for the debt to be guaranteed by the state budget.

As is known, the government through the Ministry of Finance has also issued Minister of Finance Regulation (PMK) Number 89 of 2023.

Through this regulation, the government provides guarantees for debts to cover the prosecution of the KCJB project.

"Lastly, it's below 4 percent. The range is in the 3rd kisar, I forgot, but between 3 to 3.5 percent," he said at the DPR Building, Parleman Complex, Senayan, Jakarta, Wednesday, September 20.

Regarding debt guarantees, Tiko, Kartika Wirjoatmodjo's nickname explained, it is not the state budget that guarantees the debt of the high-speed rail project.

However, continued Tiko, the government appointed PT Kereta Api Indonesia (Persero) or KAI as shareholders of PT Kereta Cepat Indonesia-China (KCIC) to patch through PMN worth Rp3.2 trillion which he received. However, the funds are loans.

While the rest, continued Tiko, PT KAI will borrow from the China Development Bank (CDB).

"So that's two steps. KAI borrowed from the CDB, but the one who gave the additional capital was KCIC, right, KCIC's son KAI, so that's 2 steps, so if you can afford to pay KAI, it's stronger," he said.

"So we feel that KAI is healthy enough to carry out the allegation for the cost overrun in its equity form," he continued.