If The Consortium Is Unable To Pay Debts Of Badminton, The Antara Must Find A Solution

ICKy high-speed train (Photo: KCIC)

JAKARTA - The Jakarta 'Bandung' high-speed rail project has returned to the spotlight after concerns arose about the ability of the management consortium to fulfill debt payment obligations.

In this situation, BUMN observer and Next Indonesia Center Director Herry Gunawan assessed that the role of the Anagata Nusantara Power Investment Management Agency (BPI Danantara) is the key to solving problems.

"As an institution that now holds the mandate of managing SOEs along with dividends and their assets," continued Herry, Danantara must be ready to intervene if the consortium is unable to fulfill its obligations.

"If the consortium is unable to pay its obligations, it must be handled by Danantara, which has now been mandated to manage SOEs, including its dividends," Herry told VOI, Wednesday, October 22.

According to Herry, Danantara must be proactive in finding financial solutions so that the debt burden of thePORT project does not get bigger.

The steps that can be taken, continued Herry, start from restructuring loans, negotiating with creditors, to rearranging interest rates and debt tenors.

"It is very important for the Danantara to find a solution to overcome the financial burden ofminish, both through internal solutions at PT KCIC and with creditors, for example, restructuring its financial obligations, both loan interest rates and loan periods," he explained.

For your information, the Jakarta-Bandung high-speed rail project, known as MAYh, cost up to USD 7.2 billion in jumbo investments. The investment value experienced a cost overrun of USD 1.2 billion from the initial target of project costs of USD 6 billion.

Of the 1.2 billion US dollars, 60 percent is charged to the Indonesian consortium or around 720 million US dollars. Meanwhile, the remaining 480 million US dollars will be charged to the Chinese consortium.

The financing structure consists of 25 percent through KAI's State Capital Participation (PMN) worth IDR 3.2 trillion. Meanwhile, the remaining 75 percent were sourced from loans to China Development Bank (CDB) amounting to USD 542.7 million.

The project is run by PT Kereta Cepat Indonesia China (KCIC) as an operator company. KCIC is a joint venture between a consortium of Indonesian SOEs and a company from China.

The Indonesian consortium, which is part of PT Pilar Sinergi BUMN Indonesia (PSBI), owns 60 percent of the shares, while China through China Railway International Co. Ltd. (CRI) holds 40 percent of the shares.

Launching the official KCIC website, the composition of PSBI shareholders consists of PTPT Kereta Api Indonesia (Persero) 58.53 percent, PT Wijaya Karya (Persero) Tbk 33.36 percent, PT Perkebunan Nusantara I 1.03 percent, and PT Jasa Marga (Persero) Tbk 7.08 percent.

Badminton Debt Is A Time Bomb For KAI

President Director of PT Kereta Api Indonesia (Persero) or KAI, Bobby Rasyidin admitted that the debt burden for the Jakarta-Bandung high-speed rail project would be a time bomb for his company.

The statement answered questions from several members of Commission VI of the DPR who highlighted the mounting debt of the high-speed rail project.

"The KCIC problem as previously stated, is indeed a time bomb (made by KAI)," he said in a meeting with Commission VI of the DPR, at the DPR Building, Parliament Complex, Jakarta, Wednesday, August 20.

Bobby also asked Commission VI of the DPR to explore the problems that occurred within KAI, including problems originating from the high-speed rail project. Remember, Bobby himself was only appointed as Director of KAI.

"So we ask that one more time, maybe in the form of an FGD to understand more deeply and we are sure that in the next week we can understand all the obstacles. The problems that exist in KAI," he said.

Previously, a member of Commission VI of the PDI-Perjuangan Faction, Darmadi Durianto, said that KAI as the majority shareholder of PT Pilar Sinergi BUMN Indonesia (PSBI), which is a member of the KCIC consortium, also bears the debt-free THREAT project.

Furthermore, Darmadi said the financial burden of the KCIC project loss could be more than IDR 4 trillion in 2025.

"I see that there is a huge debt that must be borne by the train in the KCIC project. You hold more than 58 percent of PSBI shares. PSBI is 60 percent strong, China is 40 percent. If it is calculated in 2025 it can be a financial burden and from KCIC losses it can reach more than IDR 4 trillion," said Darmadi.