JAKARTA (TheInsiderStories) - The Chinese government is confident that the Jakarta-Bandung route high speed train (HST) project can be completed by the end of 2019 as scheduled.
“China is fully confident in the early completion of the construction and operation of the train. When we come to consider this project, then it is better to hear the words of the participants of the project, we and Indonesia,” said a spokesman for the Chinese Foreign Ministry Lu Kang in a written statement in Beijing last weekend.
The statement was responding to a foreign news agency reports that the project had been a contention between China and Japan. According to Lu Kang, the preparatory work for the development of all parts of the project continues to run according to the schedule set by the Government of China, the Government of Indonesia, and the companies involved.
He admitted that there are some hurdles that slightly hinder the progress of the project.
“However, since the construction of an important part of the project started last year, China and Indonesia have worked very closely to encourage all the work as their best effort,” he said.
Lu Kang explained that both parties consult each other at this time related to the contract and the loan agreement for technical procurement construction (EPC).
Meanwhile, Indonesian Minister of State Owned Enterprises (SOEs) Rini Soemarno insists there is no problem with regard to funding the construction of high-speed train, linking Jakarta and Bandung. The project construction is pending on the results of the revised national Spatial Plan (RTRW).
Earlier, China Development Bank (CDB), an institution which will finance development of the Jakarta-Bandung fast train, has offered a bailout as an alternative temporary financing. However, the institution requires disbursement of Rp 51 trillion out of Rp 68 trillion for the construction of the project, after the land acquisition process is completed.
Minister Rini said the construction of railroad by PT Kereta Cepat Indonesia China (KCIC) is pending additional capital injection after the RTRW completed. President Director of PT KCIC Hanggoro Budi said the JV firm is targeting the physical work construction of the Jakarta-Bandung high speed train begins on March 2017. So far, KCIC has cleared 60% of total land needed to develop the project. (HS)