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House commission signs Rp 4.1t more for high-speed railway
The legislature looks set to approve an additional state capital injection for fiscal year 2023 to tackle the massive cost-overrun in the development of the Jakarta-Bandung railway link.
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Workers of PT KCIC observe the construction of the high-speed railway connection between Jakarta and Bandung in this undated photograph. (Courtesy of/KCIC)
C
ommission VI of the House of Representatives, which oversees industrial affairs, approved additional funds for state-owned railway company PT Kereta Api Indonesia (PT KAI) to complete the delayed Jakarta-Bandung high-speed railway.
According to a press statement made by PT KAI on Wednesday, the commission has agreed to an additional Rp 4.1 trillion (US$275 million) state capital injection for the fiscal year 2023 to complete the project amid a $1.17 billion cost overrun.
In August 2021, KAI replaced state-owned construction firm PT WIKA as the leader of a consortium of four Indonesian state-owned enterprises (SOEs) that holds a 60-percent stake in the Indonesian-Chinese project, PT Kereta Cepat Indonesia-China (KCIC), with Chinese railroad firm Beijing Yawan HSR holding the rest.
“KAI expresses its gratitude to the government for the trust and support given. KAI is committed to completing this assignment by applying the principles of good corporate governance (GCG) to provide high-speed rail transportation services,” KAI public relations vice president Joni Martinus is quoted as saying in the statement.
Read also: High-speed train project may take years to become profitable: KCIC
Joni added that the disbursement of funds for the project had reached 85 percent, while the construction had progressed to 76 percent of completion.
When trains start to operate on the new tracks, a single locomotive will pull eight cars with a total of 601 seats, including 555 second-class seats, 28 first-class and 18 VIP-class seats.
