Luhut Ensures KCJB Project's Cost Overrun to Be Settled in China Next Week
2 February 2023 18:34 WIB
TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan confirmed that the cost overrun of the Jakarta - Bandung high-speed railway (KCJB) project would be settled next week.
“No problem about the high-speed train cost overrun. We’d like to finalize the matter next week in Beijing, China,” said Luhut in Jakarta, on Thursday, February 2, 2023. He hoped that at the meeting, the issue will be resolved soon.
The House of Representatives (DPR) Commission VI previously approved additional state capital injection or PMN in 2022 totaling Rp3.2 trillion for state-owned railway operator PT Kereta Api Indonesia or PT KAI to resolve the project's cost overrun.
Commission VI deputy chairman Aria Bima said the approval was based on the consideration that PT KAI had completed the audit carried out by the Financial and Development Supervisory Agency (BPKP) and the KJCB Project Committee regarding the cost overrun.
The House also asked the SOE Ministry to ensure that the PMN could be used to finish the project on time in June 2023 according to a predetermined time target.
The high-speed train connecting Jakarta and Bandung of West Java is included in the national strategic project (PSN) which was built through cooperation between Indonesia and China by implementing high technology and knowledge transfer.
The trial run of the Jakarta - Bandung high-speed railway (KCJB) had been witnessed by President Joko Jokowi Widodo and Chinese President Xi Jinping virtually on the sidelines of the Indonesia-China Bilateral Meeting after G20 Summit in Bali at the end of last year.
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