Jakarta-Bandung High-Speed Train Contributes Rp5.34 Tn to State Coffer: KCIC

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11 February 2022 19:00 WIB

PT Kereta Api Cepat (KCIC) president director Dwiyana Slamet Riyadi delivers an opening speech in a ceremony marking the first installment of sleepers for the Jakarta-Bandung high-speed railway (KCJB) project in Cikarang, West Java, Wednesday, December 29, 2021. TEMPO/Dika Yanuar

TEMPO.CO, Jakarta - PT Kereta Cepat Indonesia China (KCIC) has confirmed that its Jakarta-Bandung high-speed train (KCJB) has contributed Rp5.34 trillion to the state coffer as of late December 2021.

“KCJB’s contribution to the state revenue until December 2021 reached Rp5.34 trillion,” said KCIC president director Dwiyana Slamet Riyadi in Jakarta, Friday, February 11, 2022.

He explained the contribution encompassed Rp3.37 trillion in tax payment, Rp16.9 billion in right-of-way property tax, Rp1.16 trillion in state asset rent payment for Halim Station for the next 50 years, and Rp436.8 trillion in rent payment for right-of-way of the KCJB toll trace.

He added that 67 percent of the total procurement expenses for the railway project utilized local capital goods, which had spurred regional economic growth.

The project also contributed to the economy of affected residents through land procurement worth Rp15 trillion, which was directly paid and opened up jobs for 13,477 local workers.

KCIC has also secured state capital injections (PMN) from state railway operator PT KAI through PT PSBI as the consortium of state-owned enterprises (BUMN) for the railway project in late December 2021.

Thus, the financing composition for the project comprises CDB loans, PSBI equity Chinese SOEs.

“The COVID-19 pandemic has caused four Indonesian SOEs to fail to fully pay their capital, so the government decided to provide PMN to PT KAI, which replaced WIKA as the leading sponsor,” he said.

However, despite involving the state budget and PMN, the KCJB business scheme remains B2B as opposed to B2G. Dwiyana said the PMN was given to PT KAI as a sponsor of the project.

Concerning the potential of cost overrun, Dwiyana said the leftover fund in the project was still being calculated by the Development Finance Comptroller (BPKP).

If an overrun does exist, Dwiyana asserted it would be paid from the equity, as per the previous agreement. He added KCIC would continue to propose funding to the shareholders.  

Read: Jokowi Eyes Jakarta-Bandung High-Speed Rail to Operate June 2023

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