Chinese Investors Review the Progress of Jakarta-Bandung Railway Project

INDUSTRY.co.id - Jakarta - Coordinating Minister for Marine Affairs Luhut Binsar Pandjaitan said the arrival of China Railway Corporation delegation to his office in Jakarta on Tuesday (6/3/2018) aims to review the progress of the Jakarta-Bandung rapid train project.

"China Railway they came here to see the progress (Jakarta-Bandung fast train) Now the team to the field, later on Friday (9/3) back here," said Luhut when met with media crews at the Ministry of Maritime Ministries Jakarta.

Luhut explained that the meeting with Chinese Railway Corporation Deputy President Wang Tongjum discussed all aspects of mass transportation projects that have not been completed since 2016. Also attending the meeting was Chinese Ambassador to Indonesia Xiao Qian. "We talk about land and other permits," he said.

Despite not explaining in detail, the former Coordinating Minister for Political and Security Affairs said that the disbursement process should be completed in the near future.

The China Railway Corporation itself claims that almost all the affairs related to it is almost completed. "Yes it should be, almost all he said was done," he said.

Not to mention, land acquisition has reached about 54 percent where in accordance with existing requirements then the disbursement of funds by the China Development Bank (CDB) can begin to do.

Luhut said China Railway Corporation delegation will come back on Friday (9/3) after two days of reviewing the project. The meeting on Friday will likely discuss the continuation of the project after the review. "Later Friday they come to see me, so we'll talk Friday," he said.

The 142.3 km Jakarta-Bandung high speed rail project is done by PT Kereta Cepat Indonesia China (KCIC), a state-owned joint venture with China Railway International Corporation.

Initially, the project required an investment of 5.988 billion US dollars (about Rp80, 87 trillion, exchange rate Rp13.500). However, the figure jumped to 6.071 billion US dollars due to insurance costs and loan protective costs against unexpected volatility or the Debt Service Reserve Account (DSRA).

The funding portion of the project is halved, ie 75 percent borne by China Development Bank (CDB) and the remaining 25 percent of KCIC shareholders equity.

The initial $ 500 million loan from China Development Bank is scheduled for liquidity by March 2018, after meeting the minimum requirements for land acquisition.