Take A Peek At The Jakarta-Bandung High-speed Train Interest That Experienced Cost Overrun Of Up To IDR 18 Trillion

Illustration. (Photo: Doc. Antara)

YOGYAKARTA The Jakarta-Bandung High Speed Rail Project (KCJB), which is currently in a limited trial phase, still leaves many problems. Starting from the cost overrun of 1.2 billion US dollars (around Rp. 18.02 trillion) to the interest on loans which are considered too high. If Indonesia fails to pay its debt, there is a possibility that the management of the high-speed train will be taken over by China. So, how much is the interest on the high-speed train debt?

Deputy Minister of SOEs Kartika Wirjoatmojo said the cost overrun or cost overrun for the KCJB project was in the range of 3 to 3.5 percent.

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

The man who is familiarly called Tiko added that the amount of interest on the debt refers to the last discussion between Indonesia and China.

Previously, Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan said that he failed to negotiate the amount of loan interest on the Jakarta-Bandung high-speed rail project.

During his visit to China, the Beijing government insisted on setting a loan interest of 3.4 percent.

Meanwhile, the Indonesian government requested that debt interest be cut to 2 percent.

"We want 2 percent (debt interest), but not all of us achieve it. Because if we borrow out, the interest can now be 6 percent," said Luhut some time ago.

"If we get 3.4 percent, for example, until there, we're doing okay, even though it's not okay, it's okay," he continued.

The KCJB project debt will be borne by PT Kereta Cepat Indonesia China (KCIC) as the operator as well as the concession holder.

Payment of principal installments and interest will be borne by the KCIC consortium which involves nine companies. From Indonesia, there are four SOEs, namely Wijaya Karya, Jasamarga, Perkebunan Nusantara VIII, and KAI.

Meanwhile, from China, among others, China Railway International Company Limited, China Railway Group Limited, Sinohydro Corporation Limited, CRRC Corporation Limited, and China Railway Signal and Communication Corp.

The four state-owned companies then formed a business entity called PT Pilar Sinergi BUMN and China formed China Railway. Then, the two joint companies then formed a consortium of PT KCIC.

PT Pilar Sinergi BUMN Indonesia holds 60 percent stake in PT KCIC. Meanwhile, the remaining 40 percent share is controlled by the Chinese consortium.

The Debt Of Fast Train Projects Is Guaranteed By The State Budget

For additional information, the Jakarta-Bandung high-speed rail project debt will be guaranteed by the state budget. Minister of Finance (Menkeu) Sri Mulyani Indrawati has signed Minister of Finance Regulation (PMK) Number 89 of 2023 concerning Procedures for Implementing Government Guarantee Administration to Accelerate the Implementation of High-speed Train Infrastructure and Facilities between Jakarta and Bandung. This rule was promulgated on September 11, 2023.

The guarantee was given as a step to handle the occurrence of cost overruns due to the high-speed train project.

However, the guarantee given for the withdrawal of the fast train debt will certainly not burden the state budget.

That's information about the interest on high-speed train debt. Get news updates of other options only on VOI.ID.