Different Calculations, Weighting The Cost Of Fast Train Projects Do Not Get A Chinese Agreement

Jakarta-Bandung high-speed train. (Photo: Doc. KCIC)

PT Kereta Cepat Indonesia China (KCIC) stated that until now there has been no agreement between Indonesia and China regarding the cost overrun or cost overrun for the Jakarta Bandung High Speed Rail (KCJB) project.

KCIC Corporate Secretary Rahadian Ratry revealed that the discussion of cost overrun has entered the final stage between the Indonesian Consortium and the Chinese Consortium.

Meanwhile, continued Rahadian, State Capital Participation (PMN) is also still in the process of distributing from Indonesian shareholders to KCIC.

Both of them are still in progress. Even so, the construction process and operational readiness of the KCJB are still ongoing," he said, written Friday, January 13.

For your information, from the two assessments of the Financial and Development Supervisory Agency (BPKP) it was decided that the cost overrun of the KCJB project would reach US$1.4 billion or Rp21.8 trillion (assuming an exchange rate of Rp15,600).

Meanwhile, the calculation from China is actually very different from Indonesia. It didn't even touch 1 billion US dollars. Last November, KCJB's cost overrun based on China's calculation was 980 million dollars or around Rp. 15.2 trillion.

The Jakarta-Bandung high-speed train itself was initially predicted to cost USD 6.07 billion. However, this cost will increase due to cost overruns.

As previously reported, PT Kereta Api Indonesia (Persero) has received PMN of IDR 3.2 trillion. This PMN was originally intended to be used to finance Indonesia's equity portion for the cost overrun or swelling the cost of the KCJB project.

The PMN acceptance is determined based on Government Regulation Number 62 of 2022 concerning the Addition of Indonesian PMN to KAI's Share Capital on December 31, 2022.

KAI's VP of Public Relations Joni Martinus said PMN sourced from the 2022 State Budget would increase KAI's capacity in order to complete the assignment given by the government, namely the KCJB project.

Through this PMN, said Joni, KAI will oversee the construction of KCJB so that it can be enjoyed by the community according to the set time.

"KAI will use the PMN to finance Indonesia's portion of equity on the cost overrun of the KCJB project so that its construction can achieve the operational target in June 2023," he told reporters, Tuesday, December 3.