The Interest Of Jakarta-Bandung High-speed Train Debt Is 3.8 Percent, The Tenor Is 35 Years

Jakarta-Bandung high-speed train (Photo: dock. Antara)

JAKARTA - The Indonesian and Chinese governments have agreed on the amount of interest on debt loans for the cost overrun of the Jakarta-Bandung Fast Train of 3.8 percent with a tenor of 35 years.

Deputy Minister of State-Owned Enterprises (BUMN) Kartika Wirjoatmodjo said the Indonesian government had successfully negotiated the interest on debt loans with the China Development Bank (CDB) from initially at the level of 4 percent to 3.7 to 3.8 percent.

Tiko, Kartika Wirjoatmodjo's nickname, said that the interest on loans with CDB is much lower compared to the yield on US bonds or US Treasury.

“The figure is 3.7-3.8 percent. Because let's just look at the American treasury yield, it's now 5.25 percent. This means it is far below the American treasury yield. "So that's the interest, the concession interest, special interest is also given with a very long tenor, 35 years," he told reporters, written Thursday, November 2.

For your information, the Indonesian and Chinese governments have agreed on the amount of cost overrun for the Jakarta-Bandung High Speed ​​Train project of 1.2 billion US dollars.

From the agreed amount, CDB will provide loan funds amounting to 560 million US dollars or around IDR 8.3 trillion (assuming an exchange rate of IDR 15,100 per US dollar).

This cost overrun payment will be divided according to the share ownership portion between the Indonesian and Chinese consortium. Where the Indonesian consortium is 60 percent and the Chinese consortium is 40 percent. That way, the Indonesian consortium will pay around 720 million US dollars and the Chinese consortium will pay around 480 million US dollars.

Of the total cost overrun that will be paid by the Indonesian consortium, 25 percent will be paid by PT Kereta Api Indonesia (Persero). Meanwhile, the remaining 75 percent comes from CDB loans.