Request A Fast Train Concession Period To 80 Years, KCIC Starts Providing Data To The Ministry Of Transportation

JAKARTA - PT Kereta Cepat Indonesia-China (KCIC) is still trying to get an additional application for the Jakarta Bandung Fast Train (KCJB) concession period from 50 to 80 years to be approved.

Therefore, KCIC continues to coordinate data with the Directorate of Traffic and Train Transportation, Directorate General of Railways, Ministry of Transportation.

General Manager Corporate Secretary KCIC Rahadian said the submission of data and information needed so far was carried out in stages.

Rahadian said the Demand Forecast data from the UI Polar Study, Financial Model Data from KPMG Consultants, Feasibility Data from CRDC Consultants and several other data had been submitted and an in-depth joint discussion was carried out between KCIC and the Ministry of Transportation.

"To strengthen the request, we have conducted a joint study with Polar UI regarding demand forecast and several things related to the commercial aspect. We have also submitted the results of the study to the Ministry of Transportation at the meeting which also involved the Coordinating Ministry for Maritime Affairs and Investment," he said in a statement, Friday, February 17.

In the meetings that have been held, Rahadian said, KCIC always conveys the various data and information needed by the Directorate of Traffic and Railway Transportation of the Ministry of Transportation to follow up on requests for an extension of the concession period that has been submitted by KCIC in August 2022.

Rahadian assessed that the request for an extension of the concession was possible in a regulatory manner as stipulated in the Regulation of the Minister of Transportation of the Republic of Indonesia Number 38 of 2021 and included in one of the clauses of the Concession Agreement which had previously been signed.

"The application is based on several factors such as changes in passenger demand forecast due to the impact of the pandemic and other factors, changes in the total cost of the project after the cost overrun, extensions of the construction period, changes to non-farebox business schemes, and various other factors," said Rahadian.

He said the addition of the concession period would maintain indicators of investment feasibility and ensure more sustainable high-speed train services.

"KCIC will always cooperate and communicate with the Ministry of Transportation regarding data submission, including if there are other additional data needed," said Rahadian.

The Ministry of Transportation has not yet started the Study on Extension of the Concession Period

Spokesperson for the Ministry of Transportation Adita Irawati revealed that the assessment for the extension of the KCJB concession has not yet begun.

This is because KCIC has not provided the supporting data needed in the Ministry of Transportation's study.

Until now, he said, the Directorate General of Achievement of the Ministry of Transportation has not received data to support the study on the extension of the concession period from KCIC.

"I have received information from the Directorate General of Railways so far, the KCIC has not submitted the data. So how do we want to conduct a study because the data is not yet complete and this is what we are waiting for," he told reporters, in Jakarta, Wednesday, February 15.

Adita said the Ministry of Transportation did not set a deadline for depositing supporting data on the extension of the concession period.

However, Adita suggested that the supporting data should be immediately deposited by KCIC.

"We want it as soon as possible. We have often pushed us to KCIC to carry out the submission (supporting data)," he said.