The Swelling Cost Of The High Speed Rail Project Has Been Covered, Here Are The Three Sources Of Funding

Deputy Minister of BUMN Kartika Wirjoatmodjo (Photo: Mery Handayani/VOI)

JAKARTA - Deputy Minister of State-Owned Enterprises (BUMN), Kartika Wirjoatmodjo, ensured that the cost overrun or cost overrun for the Jakarta-Bandung Fast Train project had been successfully covered.

For your information, the cost overrun or cost overrun for the first high-speed rail project in Indonesia reached 1.2 billion US dollars or equivalent to Rp. 18.76 trillion.

"So if the cost overrun has been covered up," he said after attending the National Press Day (HPN) celebration at Bentar Hall Temple, Putri Duyung Ancol, North Jakarta, February 19.

Tiko, Kartika Wirjoatmodjo's nickname, revealed that there were three sources of funding to cover the swelling cost of the high-speed rail project. First, a loan from the China Development Bank (CDB).

Furthermore, Tiko said the loan was carried out by PT Kereta Api Indonesia (Persero) or KAI and the value was US$448 million or equivalent to Rp6.99 trillion (assuming an exchange rate of Rp15,626 per US dollar).

Tiko said the loan from the CDB to cover the cost overrun for the fast train project proposed by KAI would be borne by PT Kereta Cepat Indonesia China (KCIC).

"This is actually a loan from this CDB to KAI, for injection, later as a form of shareholder loan to PT KCIC. So yesterday it was disbursed, we are still in the process of reducing it," said Tiko.

Second, continued Tiko, state capital participation (PMN) amounted to Rp3.2 trillion for PT KAI (Persero) as the majority shareholder of the BUMN consortium in the project.

Finally, an injection of funds of around Rp. 8.4 trillion came from an injection of Chinese consortium capital in the project, namely Beijing Yawan HSR Co. Ltd.

"That's enough, so later we just have to wait for the equity deposit from Beijing Yawan. So it's enough to actually fulfill it, that's it," he said.

Tiko also confirmed that the injection of funds from Beijing Yawan to cover the cost overrun was not a debt that had to be borne by KAI or the BUMN consortium.

"No, not (debt)," said Tiko.