TEMPO.CO, Jakarta - Transportation Ministry and PT Kereta Cepat Indonesia-Cina have finally signed agreement on Jakarta-Bandung high-speed train project in Jakarta, Wednesday, March 16, 2016. The consortium of state-owned enterprise and China have agreed on the items proposed by Transportation Ministry.

Both had previously fail to agree on many items, such as exclusive right. Transportation Ministry would not grant permit for other high-speed train project in the radius of 25 kilometers from the first station to the last station. Whereas the company had asked for the radius to be extended to 50 kilometers.

They have finally agreed on what the government desired, according to Budi Wiryawan, President Director of PT Kereta Cepat. “It’s been agreed at 25 kilometers,” he said in the signing of concession agreement at the office of Transportation Ministry.

PT Kereta Cepat has also set May 31, 2019 as the start of train operation. The date is important as it relates to concession period. Transportation Minister Ignasius Jonan had asked for concession period of 50 years starting from train operation target. Whereas the company had asked for concession period to start from train operation, despite failing to meet the target.

Minister Jonan said that the government does not provide any warranty whatsoever to the company. PT Kereta Cepat had aksed for compensation in the event that an arbitration decided that the government had breached the contract. “No warranty, both in cash nor guarantee,” he said.

DEVI ERNIS