JAKARTA - The cost of the Jakarta-Bandung high-speed rail project has increased. Director of Finance and Risk Management of PT KAI Salusra Wijaya said that the management of PT Kereta Cepat Indonesia China (KCIC) has made cost-cutting efficiency, TPOD, and station management to reduce the project's cost overruns.
"Thank God, we can press it to USD 8 billion. If we reduce the initial budget of 6.07 billion US dollars, the additional cost overrun will be USD 1.9 billion with 80 percent EPC composition and 20 percent non-EPC", he said in a hearing meeting with Commission VI of the House of Representatives (DPR), Wednesday, 1 September.
Salusra said that the initial budget for the Jakarta-Bandung high-speed rail project was USD 6.07 billion. The details are USD 4.8 billion for construction costs or engineering procurement construction (EPC), and costs outside the ECP are 1.3 billion US dollars.
"The largest portion of the financing is EPC USD 4.8 billion, land costs USD 0.80 billion, financing costs USD 0.27 billion, and HRS management and consultant costs USD 0.16 billion", he said.
Furthermore, Salusra said that after being calculated in November 2020, the cost turned out to be stretched to USD 8.6 billion (approximately IDR 122 trillion). Furthermore, based on a study involving consultants, the cost of the project went up again. One of them is due to land acquisition.
"After a study was carried out with the help of consultants, this project developed after changes in costs and prices and delays due to land acquisition and so on, PSBI's estimates are in the low and high scenario. Low USD 9.9 billion, and high USD 11 billion dollars", he said.
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After knowing the swelling budget, said Salusra, KCIC management assisted by consultants to make efficiency to reduce financing. He emphasized that in the future KCIC will continue to review and negotiate with the HSRCC consortium of contractors to be able to reduce the estimated cost overrun value.
Salusra said, based on the initial agreement that additional costs in the course of the project or cost overrun will be charged in the best endeavor according to each shareholder.
For your information, the funding for the Jakarta-Bandung high-speed rail project is funded by 75 percent or USD 4.55 billion by a loan from the China Development Bank. Meanwhile, 25 percent of project needs are funded from equity.
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