China Officially Disburses IDR 6.9 Trillion For The Swelling Cost Of The Jakarta-Bandung High Speed Train

Fast train (photo: between)

PT Kereta Api Indonesia (Persero) officially received a loan from the China Development Bank (CDB) to close the cost overrun or cost overrun for the Jakarta-Bandung High Speed Train (KCJB) project. The funds obtained from this CDB amounted to 448 billion US dollars or equivalent to Rp6.99 trillion (exchange rate of Rp15,626 per US dollar).

Based on material facts submitted by KAI to the Indonesia Stock Exchange (IDX), KAI received the disbursement of loans from the CDB on February 7. It was also explained that the disbursement of loans was received by PT Kereta Api Indonesia (Persero) with two different currencies, namely the US dollar and the Chinese Yuan (CNY).

In detail, facility A amounted to 230,995,000 US dollars. Then, the gasility of B RMB Equivalence is 217,080,000. US dollars or 1,542,787,560 CNY rate 1 / 7,107 dated February 5, 2024.

"The disbursement was immediately forwarded to PT Pilar Sinergi BUMN Indonesia (PSBI) on February 7, 2024," said Executive Vice President of Corporate Secretary Raden Agus Dwinanto Budiadji in the IDX's public information disclosure, quoted Tuesday, February 13.

For your information, PSBI is a consortium of SOEs in the Jakarta-Bandung high-speed rail project. The consortium consists of four SOEs, namely KAI, PT Wijaya Karya (Persero) tbk or WIKA, PT Jasa Marga (Persero) Tbk, and PT Perkebunan Nusantara VIII (Persero) or PTPN VIII. In the consortium, KAI became the majority shareholder.

Previously reported, Deputy Minister of BUMN Kartika Wirjoatmodjo said the loan from CDB would be KAI's capital. He said the Indonesian government and CDB had signed an agreement on the loan.

However, Tiko, Kartika Wirjoatmodjo's nickname, has not specified the nominal amount of funds to be injected by foreign banks into KAI.

"It's signed, but I forgot how much. But it's signed, it's about to be disbursed. That's the loan later on KAI. That's actually KAI's capital injection," he said when met at Waskita Rajawali Tower, Jakarta, Monday, January 8.

For your information, the Government of Indonesia and China have agreed on the amount of cost overrun or cost overrun for the Jakarta-Bandung high-speed rail project of US$1.2 billion.

The 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 bears around 480 million US dollars.

Of the total cost overrun to be paid by the Indonesian consortium, as much as 25 percent will be paid by PT Kereta Api Indonesia (Persero). While the remaining 75 percent come from CDB loans.

The governments of Indonesia and China have also agreed on the interest rate of debt loans for the cost of overruning the Jakarta-Bandung high-speed train, which is 3.8 percent with a tenor of 35 years.