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High-speed railway financier wants clarity on spatial plan
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Groundbreaking: Indonesian President Joko Widodo (right wearing a white helmet) leads a pack of people as he inspects the construction site of the high-speed railway that will connect Jakarta to Bandung, the country's fourth largest city, during its groundbreaking ceremony in Cikalong Wetan, West Java, on Jan. 21, 2016. (AP Photo/Dita Alangkara)
S
tate-owned Enterprises (SOEs) Minister Rini Soemarno denied on Tuesday that the China Development Bank (CDB) is withholding the disbursement of agreed-upon loans for the construction of the Jakarta-Bandung high-speed railway until the project's land acquisition process is fully completed.
“The [land acquisition] is pending the completion of the regional spatial plan that needs to be signed by the President. If not, it cannot be completed because the spatial plan is what ensures that the location cannot be changed,” she told reporters at the Presidential Palace in Central Jakarta.
(Read also: Jokowi wants MRT during Asian Games)
CDB is expected to cover around 75 percent of the US$5.2 billion worth of investment needed to complete the project.
Rini claims that while the finalization of the spatial plan is ongoing, the CDB is still committed to increasing its capital for the project.
“So far they have already put in Rp 500 billion [$37.5 million] but in essence, they need to funnel Rp 2 trillion [in capital]. However, they are still waiting for the regional spatial plan, and if that’s done then there is no problem,” she said.
Rini added that the much-awaited spatial plan would be in the form of a government regulation (PP), which she claimed had been already signed by related ministers and submitted to the Cabinet Secretariat.
