KCIC projects KCJB to contribute Rp11.1 trillion to state revenue
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 - KCIC proyeksikan KCJB sumbang penerimaan negara Rp11,1 triliun
PT Kereta Cepat Indonesia-China President Director (KCIC) Dwiyana Slamet Riyadi forecasts that Jakarta-Bandung high-speed railway (KCJB) will contribute to the state revenue by up to Rp11.1 trillion until the project operates in June 2023.
“We estimate that the KCJB project [will contribute] to the state revenue by around Rp11.1 trillion in the form of tax or PNBP (non-tax state revenue),” Dwiyana said at the hearing with House of Representatives (DPR) Commission VI on Wednesday (9/11/2022).
Furthermore, Dwiyana said that, from when it commenced, the KCJB project had contributed to the state revenue by Rp6.7 trillion until September 2022, and that amount would continue to increase. The contribution that has been realised consists of tax obligations (VAT, PPh, BPHTB, and PBB) that reach Rp5.1 trillion, lease payment for Halim worth Rp1.16 trillion, state asset lease payment for right-of-way worth Rp436.8 billion.
“That contribution is quite large even though the project has not been completed,” Dwiyana added.
On the hand, according to him, the KCJB project will only turn a profit in 38 years after it operates in June 2023 or in June 2061. This calculation was made by a financial model consultant in the last feasibility study.
“The profit calculation includes the highest tariff that reaches Rp250,000 for 3 years,” he said. However, Dwiyana affirmed that the profit in 2061 did not include land management for transit-oriented development (TOD).
“We are no longer calculating revenue from TOD as our funds are focused for construction,” he explained.
Besides that, KCJB will also affect land ownership around the project, which is why the TOD post is not included in KCIC’s calculation. For example, Halim Station, where KCIC owns 3.4 hectares of land leased by Auri for 50 years, will be developed to construct property that support the services. The rest are still in further studies.
“TOD will be carried out if everything is completed,” Dwiyana added.
Hence, Dwiyana hopes that the KCJB project can receive additional state equity participation (PMN) worth Rp3.2 trillion soon so that the project completion can be in line with the target in June 2023.
