JAKARTA (TheInsiderStories) – The investment value of the Jakarta – Bandung Fast Train swells to US$6.07 billion from the initial estimation of $5.98 billion, Chief Executive Officer of PT Kereta Cepat Indonesia China (KCIC) Dwi Windarto said Tuesday (20/02).
Chairman of PT Pilar Sinergi BUMN Indonesia, who is also President Commissioner of KCIC Sahala Lumban Gaol confirmed that the investment increases due higher costs for land acquisition.
Separately, the Coordinating Minister for Marine Affairs, Luhut Binsar Panjaitan admitted that there are still some hurdles in the development of the project, including the demand from the China Development Bank (CDB) for more guarantee in the form of setting up debt service reserve account.
The minister added the government is still looking for business development options to make the project more feasible. One option is extending the route of the fast train. He also hopes that there will be no request from the CDB, so that the investment value of the project will not swell again.