Discuss Whoosh Debt, AHY Requests Budget Support for Infrastructure to Purbaya

JAKARTA - Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), visited the office of the Minister of Finance Purbaya Yudhi Sadewa to discuss a number of issues, including the debt of the Jakarta-Bandung High Speed Train (KCJB) or Whoosh.

"The Jakarta-Bandung High Speed Train, which some time ago also received the attention of the public, we want to ensure that what is the directive of the President so that this can be resolved properly," he told the media, Tuesday, January 20.

AHY emphasized that the settlement of the fast train project debt must benefit all parties, especially since there are plans to develop the line to Surabaya.

"The state is present, the government is present and the solution must be good for everyone because we certainly do not just want KCJB or KCIC to be able to operate well, successfully. In the end, it can also be developed because it certainly does not stop in Bandung, we hope that the development of this fast train can also be up to Surabaya even," he explained.

In addition, AHY explained that his visit was also to discuss budget support for infrastructure development throughout Indonesia.

"The point is related to the construction of structures throughout Indonesia, this needs budget support. We want to convey to him what needs attention and support, whether it is large-scale projects, including basic infrastructure that indeed requires large budgets," he said.

AHY also conveyed the plan for discussion related to post-disaster recovery in Sumatra, where the repair and development of infrastructure is the responsibility of several ministries and institutions.

"In the post-disaster rehabilitation and reconstruction period, the role of infrastructure is dominant. Therefore, we want to discuss the main things that are the tasks of a number of K/L related to the repair and construction of post-disaster infrastructure, whether it is related to roads, bridges, clean water resources," he said.

However, AHY emphasized that funding was not entirely sourced from the state budget, but also through cooperation with business entities and efforts to attract investment.

"this is related to connectivity, including basic infrastructure which indeed requires a large budget. Of course the scheme is not entirely from the state budget, but also through cooperation with business entities. Including efforts to bring in investment," he concluded.

For information, the Whoosh Project is carried out by PT Kereta Cepat Indonesia China (KCIC), a joint venture between a consortium of SOEs through PT Pilar Sinergi BUMN Indonesia (PSBI) and a Chinese consortium through Beijing Yawan HSR Co. Ltd.

PSBI holds 60 percent of the shares, while Beijing Yawan 40 percent, with PT Kereta Api Indonesia (KAI) as the leader of the PSBI consortium.

The project, which was initiated in 2015 and began to be physically built in 2016, cost around 7.2 billion US dollars (around Rp122 trillion).

The cost inflation reached 1.2 billion or around Rp20.35 trillion from the targeted budget.