Danantara Boss On Fast Train Debt: Negotiations With China Are Ongoing

JAKARTA - Danantara Chief Executive Officer (CEO) Rosan Roeslani revealed that the government is negotiating with the Chinese government regarding the Jakarta-Bandung high-speed train debt.

Rosan said negotiations were also carried out with the National Development and Reform Commission (NDRC) to ask for permission.

"Yes (the negotiations) are ongoing with the Chinese side, both with the Chinese government, as well as with the NDRC, it is ongoing," said Rosan when met at the Jakarta International Convention Center, Wednesday, October 8.

Even so, Rosan said, his party did not want to use a restructuring scheme, which in the future still left problems.

He said he would carry out comprehensive reforms so that similar problems would not be repeated in the future.

"We want it not to be a restructuring whose potential problems will exist in the future. So we want to carry out comprehensive reforms, as a whole. Once we restructure, in the future things like this will not happen again, such as possible defaults and others," said Rosan.

When asked about the restructuring scheme to be taken, Rosan could not convey it. Because the discussion is still ongoing.

"This is still running with the Chinese side, so it's not good for me to have spoken here, there will be no agreement there. Let us finish this first, we'll tell you later," he said.

On the other hand, Rosan acknowledged that this debt restructuring negotiation with the Chinese side was needed because there were plans to continue the construction of the project until Surabaya, East Java.

However, Rosan did not explain in more detail. He only ensures that the project implementation is carried out with ongoing principles.

"Essentially, even if this Jakarta-Surabaya is implemented, the structure is a truly sustainable structure," he said.

Previously, it was reported that Danantara Indonesia would restructure the debt for the Jakarta-Bandung High Speed Rail (KCJB) project.

This restructuring is one of the focuses of 22 work programs that will be accelerated in the remaining 2025 by Danantara.

The high-speed rail project, known asPORTash, experienced a cost overrun of US$1.2 billion or equivalent to Rp18.76 trillion.

Of this amount, 60 percent is charged to the Indonesian consortium or around 720 million US dollars.

The financing structure consists of 25 percent through KAI's State Equity Participation (PMN) worth IDR 3.2 trillion. Meanwhile, the remaining 75 percent were sourced from loans to China Development Bank (CDB) amounting to USD 542.7 million or IDR 8.4 trillion.

Danantara Indonesia Chief Operating Officer (COO) Dony Oskaria said his party would propose several alternatives to restructuring the fast train debt to the government.

"Indeed, we are thinking about this fast train, and we will propose it soon. But there are still some alternative solutions that we will offer, we will convey to the government about the completion of this fast train," said Dony when met at the DPR Building, Jakarta, Wednesday, July 23.

Dony explained that this debt restructuring needs to be done in order to maintain the performance of SOEs involved in the high-speed rail project, especially PT Kereta Api Indonesia (Persero) which is the leader of the Indonesian consortium.

Sekadar informasi, operator Kereta Cepat-Jakarta Bandung, PT Kereta Cepat Indonesia China (KCIC) adalah perusahaan patungan antara konsorsium Indonesia, PT Pilar Sinergi BUMN Indonesia (PSBI) dengan kepemilikan saham sebesar 60 persen, dan 40 persen persen sisanya miliki konsorsium China, Beijing Yawan HSR Co. Ltd.

Komposisi pemegang saham PSBI terdiri dari PT Kereta Api Indonesia (Persero) sebesar 51,37 persen, PT Wijaya Karya (Persero) Tbk 39,12 persen, PT Jasa Marga (Persero) Tbk 8,30 persen, dan PT Perkebunan Nusantara VIII 1,21 persen.

“Ini operasionalnya kan sedang kita lihat bagaimana nanti solusi jangka panjangnya mengenai utang-utang daripada konsorsium ini yang cukup besar ya. Ini yang nanti akan kita sampaikan (ke pemerintah),” tuturnya.

Dony bilang, restrukturisasi utang proyek Kereta Cepat Jakarta Bandung ini akan dilakukan secara komprehensif dan tidak menggangu kinerja KAI.

“Kita ingin penyelesaian kali ini komprehensif dan tidak mengganggu kinerja Kereta Api Indonesia ke depan,” ucapnya.

For your information, the operator of the Fast Train-Jakarta Bandung, PT Kereta Cepat Indonesia China (KCIC) is a joint venture between the Indonesian consortium, PT Pilar Sinergi BUMN Indonesia (PSBI) with 60 percent share ownership, and the remaining 40 percent have a Chinese consortium, Beijing Yawan HSR Co. Ltd.

PSBI's shareholder composition consists of PT Kereta Api Indonesia (Persero) at 51.37 percent, PT Wijaya Karya (Persero) Tbk 39.12 percent, PT Jasa Marga (Persero) Tbk 8.30 percent, and PT Perkebunan Nusantara VIII 1.21 percent.

"This is an operation, we are currently seeing how the long-term solution will be regarding the debts of this consortium which is quite large. We will convey this later (to the government)," he said.

Dony said that the debt restructuring of the Jakarta-Bandung high-speed rail project would be carried out comprehensively and would not interfere with KAI's performance.

"We want the settlement this time to be comprehensive and not interfere with the performance of the Indonesian Railway in the future," he said.