Commission VI approves additional Rp3.2 trillion state capital participation for high-speed railway
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.
Investor Daily - Komisi VI setujui tambahan PMN kereta cepat Rp3,2 triliun
24 November 2022
By: Amrozi Amenan and Triyan Pangastuti
House of Representatives (DPR) Commission VI approves the additional state equity participation (PMN) in 2022 worth Rp3.2 trillion for PT Kereta Api Indonesia/KAI (Persero) to complete Jakarta-Bandung High-Speed Railway (KCJB) project that is experiencing cost overrun. Commission VI also asked State-owned Enterprises Ministry to ensure that the additional PMN would be able to complete KCJB project on time by June 2023.
“DPR Commission VI approved the additional PMN in 2022 for KAI worth Rp3.2 trillion from the investment reserve of the 2022 APBN (state budget) to complete Indonesia’s capital portion of the cost overrun of Jakarta-Bandung High-Speed Railway,” Commission VI Chair Aria Bima said when he read the conclusion of the work meeting on Wednesday (23/11/2022).
Moreover, the work meeting was also attended by State-owned Enterprises Deputy Minister Kartika Wirjoatmodjo, PT KAI (Persero) President Director Didiek Hartantyo, and PT Kereta Cepat Indonesia China (KCIC) President Director Dwiyana Slamet Riyadi.
Aria explained that the PMN was approved as KAI had completed the audits from the Development Finance Comptroller (BPKP) as well as KCJB Project Committee regarding the cost overrun in accordance with Presidential Regulation Number 93 of 2021 on Acceleration of Infrastructure and Facilities Organisation of High-Speed Railway Between Jakarta and Bandung.
“Our legal umbrella is clear and strong regarding this decision. Besides the further study regarding the technocratic issue, there is also a legal umbrella for the financial side in the form of audits from supervisory agencies and presidential regulations,” Aria said during the work meeting on Wednesday (23/11).
Aria said that, in order for the project to progress as planned, Commission VI asked State-owned Enterprises Ministry to ensure that the additional PMN worth Rp3.2 trillion could complete KCJB project on time. The target set for KCJB project is June 2023.
Besides that, the government is currently completing the main station in Halim that will be connected to LRT stations. Then, there are also stations from Karawang to Tegalluar that are existing projects.
“We are accelerating Padalarang as it was left out due to new stations to attract [tourists] to Bandung. We are accelerating it, and it is expected to commence limited operation in June-July 2023. It will be completed gradually,” he said.
Tiko also said that KCJB was set to be connected to Jabodebek Light Rail Transit (LRT) in June 2023. The integration point is located at Halim station in East Jakarta. “If there is no issue from June to July 2023, we will operate the LRT and high-speed railway in parallel simultaneously, they will meet at Halim Station so that they can be integrated with other modes of transportation in Jakarta,” he said.
