Development Finance Comptroller to audit high-speed railway project immediately
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.
Media Indonesia - BPKP Segera Audit Proyek Kereta Cepat
16 October 2021
The Jakarta-Bandung High-Speed Railway (KCJB) project will be audited immediately by the Development Finance Comptroller (BPKP). The audit will be conducted as there is cost overrun by up to US$1.9 billion or around Rp27 trillion in the project.
Based on Presidential Regulation Number 93 of 2021, PT Kereta Api Indonesia is appointed by President Joko Widodo as the consortium leader for the KCJB project.
“The cost overrun potential is around US$1.3 billion to US$1.9 billion (Rp18 trillion to Rp27 trillion). It currently still being calculated. Later, the BPKP will conduct an audit,” PT Kereta Api Indonesia (Persero) President Director, Didiek Hartantyo, said to Media Indonesia yesterday.
Didiek explained that the audit implementation was stated in Presidential Regulation Number 93 of 2021. In Article 4 paragraph 5 point C, it is mentioned that SOE (State-owned Enterprise) Minister, Erick Thohir, will review BPKP’s audit and forward it to the committee led by the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan.
Next, Luhut and Erick will discuss BPKP’s audit result and appoint an independent accountant to conduct a study and provide suggestions regarding the funding structure to resolve the cost overrun.
Didiek mentioned that the main cause of the cost overrun of the KCJB project was land acquisition.
When he was asked for a confirmation, BPKP Head, Muhammad Yusuf Ateh, confirmed that there would be an audit. However, his agency has yet to conduct the audit.
Previously, PT KCIC Corporate Secretary, Mirza Soraya, revealed that KCJB’s cost overrun was caused by unexpected construction costs. For example, costs for land acquisition as well as public facility and social facility relocation.
“During the land acquisition as well as the public facility and social facility relocation, there were several issues that were not predicted when the plan was being made as they only arose during construction,” he told a reporter several days ago.
