National strategic project: New ammo for bullet train
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Proyek strategis nasional: Amunisi baru kereta peluru
14 February 2023
By: Lorenzo A. Mahardhika and Hendra Wibawa
PT Kereta Cepat Indonesia China will receive an additional loan from China to accelerate the completion of Jakarta-Bandung High-speed Railway in the middle of this year.
The good news for Jakarta-Bandung High-speed Railway (KCJB) came from the meeting room of House of Representatives (DPR) Commission VI on Monday (13/2).
During the work meeting of DPR Commission VI with State-owned Enterprises (SOE) Minister Erick Thohir, it was revealed that Indonesia and China agreed on the cost overrun of KCJB project.
SOE Deputy Minister Kartika Wirjoadmodho disclosed the agreement with the Chinese party.
During the meeting in Beijing in China, according to him, both delegates agreed on the cost overrun amount of KCJB project that reached US$1.2 billion or Rp18.2 trillion (assuming Rp15,600 per dollar). The agreement is lower than the final calculation of the Development Finance Comptroller (BPKP) that calculated the cost overrun of KJCJB would reach US$1,449 billion or Rp21.7 trillion.
Kartika, familiarly called Tiko, explained that the agreement of both countries regarding the amount of the cost overrun of KCJB would facilitate KCIC’s step to work on the national strategic project.
“We were just from Beijing [in China]. We have agreed on the cost overrun [amount] that has been agreed on by Indonesia and China so that the amount can be disbursed to KCIC, reaching US$1.2 billion,” he said at the work meeting with DPR Commission VI.
With that result, Indonesia immediately negotiated the terms to disburse an additional loan from China Development Bank (CDB) worth US$550 million.
“So, the government is negotiating the final structure and the price. It should be completed next week. The loan portion from CDB covers 75% [of the US$1.2 billion]. Then, it is divided again to be 60% from us and 40% from China,” he explained.
Tiko revealed that KCJB project had received an additional state equity participation (PMN) from DPR Commission VI worth Rp3.2 trillion that was provided to PT Kereta Api Indonesia (Persero) as Indonesia’s SOE consortium leader to complete KCJB project that was experiencing a cost overrun.
He hopes that the disbursement of the loan from CBD for KCJB project can complete the project on schedule in June 2023 or July 2023.
At the same work meeting, Erick Thohir affirmed that KCJB project was hindered due to the Covid-19 pandemic that increased commodity prices, including iron and steel.
“During the Covid [pandemic], supply chain was disturbed, so commodity prices were high, including iron. This is important, so no one should assume that there is corruption,” he explained.
KCJB is a national strategic project that is built through a cooperation between Indonesia and China.
The construction of the project uses sophisticated technologies and utilises knowledge and technology transfers so that workers in Indonesia can improve their competence in the high-speed railway sector.
Trainsets
On another occasion, KCIC Corporate Secretary General Manager Rahadian Ratry explained that KCIC was waiting for the last five electric multiple units (EMUs) that would arrive in stages in Indonesia until the end of April 2023.
Since 13 January 2023, he explained that KCIC had received four EMUs that were part of the second batch in Tegalluar Depot in West Java.
He stated that there was no meaningful issue during the delivery process of the EMUs from the storage location in Cakung, Bekasi.
He explained that, before the trains were delivered, KCIC always carried out a pre-trip inspection to ensure the security and the safety of the trains during delivery to Tegalluar Depot.
“To ensure security during the delivery process, KCIC continuously coordinated with all related stakeholders, such as Korlantas Polri (Traffic Corp of Indonesia National Police), Jasa Marga, BPJT (Toll Road Regulatory Agency (BPJT) of the PUPR (Public Works and Housing) Ministry, as well as contractors and consultants in KCJB project,” Rahadian said in his official statement.
During delivery, each EMU is unlinked to be delivered one by one using trucks with a capacity of 279 tonnes.
To maintain the security of other toll road users, he added that the delivery was carried out on weekdays from 9:00 PM West Indonesia Time (WIB) to 5:00 AM WIB. Every day, the number of EMUs delivered is limited to 2 units.
Rahadian affirmed that each EMU delivery took 2 days to ensure the security and the safety of the staff and all toll road users.
According to him, Tegalluar Depot is sterile from various heavy equipment so that the EMUs can be placed immediately on the tracks.
With the arrival of the four EMUs, Rahadian stated that the number of KCJB EMUs increased to six trainsets out of 11 trainsets that were planned for KCJB’s operation.
