Cost Overrun Fee IDR 18.2 Trillion, Observer: Without A Pandemic It's Swell

Illustration (Photo: Doc. Antara)

JAKARTA - Transportation expert from the Bandung Institute of Technology (ITB) Sony Sulaksono said that without the COVID-19 pandemic, the cost of the Jakarta Bandung High Speed Rail (KCJB) project had also swelled from the initial cost projection.

As is known, this project should have been completed in 2019. However, the construction of this project has been delayed for four years and is targeted to operate in June 2023. As a result, the cost of the project swelled drastically.

The cost overrun or cost overrun for the KCJB project agreed by Indonesia-China is US$ 1.2 billion or equivalent to Rp. 18.2 trillion.

"I see that without a pandemic there is already a swelling. The pandemic is only getting worse," he told VOI, written Thursday, February 16.

Sony explained, actually in infrastructure development, cost overruns can occur. The causes are internal factors and external factors.

Yesterday's pandemic clearly made the KCJB project slow down and then ( exacerbated) cost overruns. This is an external factor," he said.

Sony said, internal factors can occur due to underprivileged planning, causing additional costs.

In the construction of KCJB, said Sony, it also occurred like there were utilities along toll roads that were only known during construction.

"Then land acquisition that is not in accordance with the initial plan, repetition of construction because the quality is not good, and others," he explained.

In addition, Sony said the cost overrun for the KCJB project would be a burden for State-Owned Enterprises (BUMN).

The reason is, to cover the swelling of government costs, the government plans to make a loan from the China Development Bank (CDB) worth US $ 550 million or IDR 8.3 trillion.

"This is a consortium loan, in this case a visible SOE. Directly, it is not a burden on the state budget but the burden on SOEs remains a loss for the community and is also affected," he said.

Therefore, Sony considers this project a dilemma for the government. The reason is, if project development is accelerated, the government must spend more, while if it is not accelerated the cost of the project could swell.

"Yes (aligned). And this is the government's bet now," he said.