Faisal Basri Criticizes Jokowi's Return Of Capital Fast Train Waiting For Doomsday, Denny SIregar: That's The Count Of Street Vendors, Buy Vegetables For IDR 1,000, Sell IDR 1,500
Jakarta-Bandung high-speed train. (Photo: Doc. KCIC)

JAKARTA - University of Indonesia (UI) senior economist Faisal Basri criticized the construction of the Jakarta-Bandung High Speed Train (KCJB). This project is in the spotlight because it is considered redundant.

According to Faisal, the funding for this project is predicted not to return on investment even until the end of the world. "Soon people will pay for the fast train. Maybe the ticket will cost Rp 400,000 one way. It is estimated that until the end of the world there will be no return on investment," said Faizal in a virtual dialogue, Wednesday, October 13, 2021.

Faisal's calculations were refuted by social media activist, Denny Siregar. According to Denny, although he is not an economist, he sees that the Jakarta-Bandung high-speed rail project must be broader, not just when to payback.

"How come Faisal Basri, an economics expert at a UI lecturer, sees the construction of a high-speed train only seeing how much capital is spent and how much is the price of a train ticket so that the capital can be returned? That's the calculations of street vendors. profit for Rp. 1,500," explained Denny as reported by VOI from CokroTV's Youtube channel, Saturday, October 16.

In Denny's view, national development projects must be viewed within the framework of the multiplier effect. For example, industrial development in an area is not only seen how much capital is spent or how much profit is earned.

Rather, how much labor is absorbed, how is the economic wheel around industrial development, the price of land for the population is moving up and so on.

"So there is no new economic growth that would not exist if the industrial area was not built. That is what is known as the multiplier effect. It's like the construction of this high-speed train," explained Denny.

The multiplier effect of the Jakarta-Bandung high-speed train is the growth of the train stop area. From quiet to crowded because it was stopped by fast trains. Not to mention people's businesses ranging from places to food, transportation, land and so on.

"The area around the station that used to be quiet and there was no price became crowded. The level of the economy is growing that an economist does not think about, who only dwells on the amount of capital. Jokowi's thinking is crazier than the Jakarta-Bandung high-speed train,"

"When this is finished, Jokowi will build again to Surabaya. Maybe to Banyuwangi and maybe even to Bali. Imagine the new economic value that grows in the new stations of the high-speed train that passes from Jakarta to Surabaya or to Bali," said Denny. .

For information, Faisal highlighted the construction of the Jakarta-Bandung High Speed Train (KCJB). The project was built by PT Kereta Api Indonesia-China or KCIC.

The green light for the use of the state budget is because the project financing has swollen to 8 billion US dollars. Initially, this project was calculated to cost 6.07 billion US dollars through the cooperation of the Indonesian and Chinese governments.

The use of the APBN for the Jakarta-Bandung high-speed rail project is revealed in Presidential Regulation (Perpres) No. 93/2021, which was just signed on October 6, 2021. The regulation is an amendment to Presidential Decree No. 107/2015, concerning the Acceleration of the Implementation of Infrastructure and Facilities for the Jakarta-Bandung high-speed train. .

The assistance is provided in the form of state capital grants (PMN), project guarantees, and permits to issue debt securities or bonds for PT Kereta Api Indonesia (Persero) or KAI as the project consortium leader.

For your information, this fast train is a mode of mass transportation that operates from the Jakarta area to Bandung and vice versa. This fast train uses the latest generation CR400AF with an operating range of 142.3 km. This transportation goes through four stops, namely Halim, Karawang, Walini, and Tegalluar.

Quoted from kcic.co.id, there are several advantages that the Jakarta-Bandung High Speed Train has, which is more effective and efficient, especially in terms of time. Then, the technology used in this transportation is modern. Then, the government also guarantees the safety of this transportation. Especially for passengers with disabilities to stay comfortable during the trip.

Not only that, another advantage is that this fast train will be integrated with other public transportation modes such as LRT and Transjakarta. It is even planned that there will be Bus Rapid Transit (BRT) at every stop station.

The Minister of Transportation (Menhub) Budi Karya Sumadi said that the construction project of the Jakarta-Bandung High-Speed Train that uses high technology is a good leap for Indonesia.

Budi made this statement at the opening ceremony of the head office of China Railway Group Limited (CREC) in Indonesia, which is the largest investor in the Jakarta-Bandung high-speed rail project.

"This is a certain leap for Indonesia in terms of development technology, from what was previously not possible, now it is possible. We should interpret this leap well," Budi Karya was quoted as saying in a written statement, Sunday, April 11.

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