Borrowing To CDB IDR 6.9 Trillion, KAI: Used To Pay For Fast Train Contractors

ICKy high-speed train (Photo: KCIC)

JAKARTA - PT Kereta Api Indonesia (Persero) or KAI received a loan from the China Development Bank (CDB) of IDR 6.9 trillion. The loan funds will be used to finance the debt of the Jakarta-Bandung high-speed rail project.

The loan funds from the CDB were received by KAI on February 7.

EVP of Corporate Secretary of KAI Raden Agus Dwinanto Budiadji said that one of the fresh funds from the loan will be used to pay for the construction costs of the Unpaid Fast Train project.

"The use is of course to pay the contractor. The contract has Wijaya Karya, then what (other) is paid for construction development. For payment, we already have a period according to the conditions," he told the media, in Jakarta, written Tuesday, April 23.

Agus himself did not specify which parts of the project had not been paid off. However, it was included in the overall cost overrunbulge of US$1.2 billion or Rp18.2 trillion.

"For what purpose, yesterday it was a construction like from Wijaya Karya. There are also some who have not paid and so on. There are many contracts, from China, from Indonesia, from everywhere, we will finish them," said Agus.

Agus said that the payment of the costs for the construction of the HIGH Speed Train had previously been arranged between a consortium and a contractor. He also said he already had a list and the order of the parties who would be paid.

"The term is in accordance, regulated, the term of the ax. Where to get paid, to anyone there is a list and the order," he explained.

Furthermore, Agus explained that the repayment time of the loan from the CDB would follow the agreed length of the agreed consensus.

"The fees are according to the CDB loan in accordance with the concessions. The concessions, for example 40 years, are still being discussed regarding Transportation. The birth is still being discussed for 80 years, it is still being discussed," said Agus.