JAKARTA (TheInsiderStories) - Transportation Ministry will in the near future issue permits to develop and operate the Jakarta-Bandung High Speed Train project after PT Kereta Cepat Indonesia China (KCIC), the developer of the project, finally signed concession permit.
Transportation Minister Ignasius Jonan said that the the investment to develop the Jakarta-Bandung High Speed Train has been cut to US$5.1 billion from US$5.5 billion set earlier, after KCIC revised the feasibility study, as a prerequisite to obtain the concession permit.
The concession permit was signed by KCI and the Transportation Ministry on Wednesday (March 16), which will last for 50 years.
He said the feasibility study has been revised as there some changes in term of railway tracks from Gambir to Bandung to Halim (East Jakarta) to Bandung.
“Thus the total investment is US$5.1 billion after the revision of FS,” he said.
However, Jonan did not disclose whether there has been a change in the source of funds to finance the project. Previously, China Development Bank (CDB) said it would give loan as much as 75 percent of the total investment, while 25 percent will come from a consortium.
Jonan said KCI has been granted concession to operate the HST for 50 years, in which the date of the maiden operation to be determined by the Transportation Ministry.
He said the project development permit will be given soon after concession permit is signed.
In addition to the concession, Jonan asked KCIC to adhere to the points that have been agreed. First, concession period is set for 50 years since the signing of the concession permit and may not be extended; Secondly, the government does not receive concession fees; third, the HST project will not use funds from the State Budget; fourth, KCI must comply with the applicable laws in Indonesia; fifth, after the concession ends, the facilities will be handed over (to the government) in clean and clear condition and shall not pledged to other parties as collaterals; sixth, the concession agreement cannot be cancelled unilaterally by the government should there be any changes of laws.
Seventh, the government will not provide high speed train permit to other parties, within 10 kilometers from Jakarta-Bandung stations; eight, the government, can give permits to operate railway facilities within the HST corridor operated by KCIC only after approval is given by KCIC; and lastly, the government does not provide guarantee for the failure of the development of the HST project, caused by KCIC.
Under the existing plan, in addition to stations in Halim and Bandung, there will be stations built in Karawang, Walini and then Tegal Luar.
About 15.23 percent of the railway will be built through a tunnel and 46.81 percent (66.62 km) will be built above bridge. (*)
