Overcoming The Surge In Costs, The Government Is Called To Provide Guarantee For High-speed Rail Projects

Illustration of the Jakarta-Bandung High Speed Train. (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) is said to provide guarantees for the potential swelling debt for the Jakarta-Bandung High Speed Rail (KCJB) project.

This is stated in the Minister of Finance Regulation (PMK) Number 89 of 2023 concerning Procedures for Implementing Government Guarantees to Accelerate the Implementation of Jakarta-Bandung High-speed Train Infrastructure and Facilities.

In this regulation, the government will guarantee PT KAI as the debtor of the government's strategic project. The PMK, which was signed by the Minister of Finance Sri Mulyani on August 31, alluded to the role of state finances (APBN) in ensuring that KCJB can be held properly.

It was noted that PMK 89/2023 required PT KAI to submit a guarantee to the Minister of Finance, in this case through the Directorate General of Financing and Risk Management.

The following are some requirements that must be met by PT KAI to obtain this facility.

For information, the KCJB project was originally estimated to cost $ 5.1 billion based on a proposal submitted by the Chinese Government.

Behind, information conveyed by the Deputy Minister of SOEs Kartika Wirjoatmodjo occurred in an overrun cost of US$1.2 billion.