KCIC Asks For A Consensitivity Period For The Jakarta-Bandung High-speed Train To Be Extended To 80 Years, What Is Consensitivity?

Illustration of the Jakarta-Bandung high-speed train (Photo: Doc. Antara)

YOGYAKARTA Some people may ask what is a consensus after PT Kereta Cepat Indonesia-China (KCIC) as the manager of the Jakarta-Bandung Fast Train (KCJB) asked for the fast train concession period to be extended from the initial 50 years to 80 years.

Acting Director General of Railways of the Ministry of Transportation (Kemenhub) Mohamad Risal Wasal conveyed that the request for an extension of the concession period was submitted by PT KCIC on August 15, 2022, through letter Number 0155/HF/HU/KCI/C08 2022.

"PT KCIC asks the Ministry of Transportation to make adjustments to the KCJB concession period," said Risal during a working meeting of Commission V of the DPR at the DPR Building, quoted from the Commission V DPR RI Channel Youtube channel, Thursday, December 8, 2022.

According to Law Number 30 of 2014 concerning government administration, what is meant by consequence is that the decision of the competent government officials as a form of approval from the agreement of the Agency and/or Government Officials with other than the Agency and/or Government Officials in the management of public facilities and/or natural resources and other management in accordance with the provisions of the legislation.

In terms of providing railway transportation services, the consequence is the granting of rights by the government to Railway Business Entities to carry out activities in the railway sector within a certain period of time and certain compensation.

A concession agreement is made when something that can hinder the provision of rail transportation services that must be immediately restored and cannot wait for financing from the State Revenue and Expenditure Budget so that action is needed by the government.

Jakata-Bandung Fast Train Consensitivity Agreement

Regarding the Jakarta-Bandung high-speed rail project, a concession agreement was made between the Ministry of Transportation and PT Kereta Cepat Indonesia China.

The cooperation agreement with Number HK.201/1/21 Phb 2016 was signed by the Minister of Transportation Ignasius Jonan and the President Director of PT Kereta Cepat Indonesia Cina, KCIC, Hanggoro Budi Wiryawan at the Ministry of Transportation office, Jakarta, on March 16, 2019.

In the agreement, the concession period lasts for 50 years, calculated since May 31, 2019 and cannot be extended, except in a dredging situation -like there was a natural disaster.

In addition, the investment value that will be favored by KCIC is 5.9 billion US dollars. Meanwhile, the handover of the railway infrastructure was carried out at the end of the concession period.

However, recently, PT KCIC asked the Ministry of Transportation to extend the concession period to 80 years. This is due to obstacles that have caused a change in the feasibility of the project business.

"There are several obstacles that cause a change in the feasibility of the project business, so it takes adjustment of the concession period to 80 years," said Acting Director General of Railways of the Ministry of Transportation (Kemenhub) Mohamad Risal Wasal.

Risal explained three urgencys that required the concession period to be extended to 80 years.

First, improve the KCJB project feasibility indicator in order to meet cost overrun funding, so that the project can be completed properly and on time.

Second, in order to maintain the continuity of the KCJB project, so as to maximize the positive impact of the implementation of KCJB in various aspects that can benefit stakeholders and the community.

Third, to realize the success of the Jakarta-Bandung high-speed rail project, so as to strengthen bilateral relations between the two countries.

For additional information, the cost of the Jakarta-Bandung high-speed rail project has increased to US$1.449 billion or more than Rp21 trillion. The cost of the project is now US$7.5 billion.

That's the information about what a consensus is. To get updates on the development of the current situation, keep looking at VOI.id.