Cost Overrun Of Jakarta-Bandung High Speed ​​Rail Project Reaches IDR 21.4 Trillion

A series of inspection trains for the maintenance needs of the Jakarta-Bandung high-speed train in Tegal Luar, Bandung Regency, West Java. (Photo: Doc. Antara)

JAKARTA - The cost overrun for the Jakarta Bandung Fast Train (KCJB) project has reached 1.449 billion United States (US) dollars or equivalent to IDR 21.4 trillion (assuming an exchange rate of IDR 14,800).

This figure is the result of a review conducted by the Financial and Development Supervisory Agency (BPKP). The initial cost of this project is 6.07 billion US dollars.

President Director of PT KAI Didiek Hartantyo said BPKP conducted two cost overrun reviews or cost overruns for the KCJB project.

The results of the first review total cost overruns of 1.176 US dollars.

Then, said Didiek, BPKP conducted a second review. Based on the results of the review, the cost overrun was US$ 273 million.

"So, with the existence of assertions one and two, the total cost overrun is US$1.449 billion," he said during a hearing with Commission VI, Wednesday, November 9.

For your information, the cost overrun for the KCJB project has increased when compared to the calculation and review of BPKP on March 9, 2022, which was only US$1.17 billion or equivalent to IDR 17.64 trillion.

According to Didiek, this cost increase will be paid by a joint venture between a consortium of Indonesian and Chinese SOEs 25 percent and 75 percent will come from the withdrawal of loans from the China Development Bank (CDB).

"We have reached an initial agreement with the Chinese side. This cost overrun financing structure is carried out with a scheme with 25 percent equity, and 75 percent loan. This has been an agreement," said Didiek.

Didiek explained that 25 percent of the cost of swelling the KCJB project was recorded at IDR 5.363 trillion.

Of this amount, 60 percent or IDR 3.218 trillion was paid by the Indonesian consortium and 40 percent or IDR 2.145 trillion was paid by the Chinese consortium.

Meanwhile, 75 percent or IDR 16.1 trillion will be met through loans to CDB.

"For the portion of Indonesia's equity whose total value is IDR 3.2 trillion, it is proposed to source from PMN to PT KAI as the leading sector," he said.