Erick Thohir: I Became A Minister When The Jakarta-Bandung High-speed Train Reached 60 Percent, Should I Stop? It Will Be Useless

Minister of SOEs, Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir said the Jakarta-Bandung High-Speed Train (KCJB) project requires support from the state budget (APBN). If no support is given, more than 60 percent of the projects that are already running will become scrap metal.

"This is when I entered (as Minister of State-Owned Enterprises), the KCJB project was more than 60 percent. Is it time to stop? Yes, it means that if you stop, the money will be burned. Everything becomes scrap metal," he said at the Kick Andy Show, quoted Monday, November 15.

According to Erick, the current project financing structure has been improved. So that it can ask for a statement of the state capital (PMN) and restructuring, which initially only relied on financing from market mechanisms.

Furthermore, Erick said that the work on the project would continue after Finance Minister Sri Mulyani approved the disbursement of PMN from the APBN worth Rp4.3 trillion through PT Kereta Api Indonesia (KAI).

As is known, the projected funding needs for the Jakarta-Bandung high-speed rail project will swell by around Rp27 trillion from the initial calculation.

"It can't be b to b (Business to business). This must have an assignment and we present it openly. There is no dustpan," he explained.

Will not return the investment in a short time

In addition, Erick Thohir acknowledged that the KJCB project will not return its investment in a short time. This is in response to Economist Faisal Basri's statement that the KCJB project will not return on investment until the end of the world.

Furthermore, Erick said that infrastructure investment is indeed long-term. He said, the benefits of the KCJB project will be felt not now but in the next 30 to 40 years

"Yes, indeed (benefits) of infrastructure projects are long. We will not feel it until we die, maybe those who enjoy our children and grandchildren," he said.

Erick admitted that it did not light up Faisal Basri's view. However, in the project, demand and supply must be considered or supply and demand. Because of that, he said he didn't want to argue.

"I'm not saying that the observer is wrong. But there must be supply and demand thinking. I don't want to debate, because I'm not an economist," he explained.