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New rules aim to keep future rail projects from going off track
Informed by the hefty cost overruns of the Jakarta-Bandung railway project, the proposed regulation appears aimed at avoiding a repeat of mistakes in future high-speed rail development.
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Workers stand inside a tunnel, still under construction, of a high-speed railway project to connect Jakarta with Bandung in May 2020. (Courtesy of/KCIC)
T
he government is working on a new regulation to serve as the legal foundation for future high-speed railway development in the country, as it contends with major complications in ongoing projects.
The new regulation is aimed at clarifying how the costs of high-speed railway development in the country will be split among the state budget, state-owned enterprises (SOEs) and the private sector.
It will cover aspects ranging from land clearing and electricity transmission to signaling systems and transportation to and from railway stations, among others.
Some of these aspects have pushed the overall costs of the Jakarta-Bandung high-speed railway project, currently being developed by an Indonesian-Chinese consortium, far above initial projections.
Deliberations on the regulation began on Oct. 3 at a meeting led by Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan, who is also heading a committee to address the cost overrun issues in the ongoing project.
“The hope is that if there is another high-speed railway project in the future, or an extension of the current project to Surabaya, there will be a solid legal and operational basis, including for land acquisition,” Deputy State-Owned Enterprises (SOEs) Minister Kartika Wirjoatmodjo told lawmakers on Wednesday.
Read also: As Xi visit draws near, delays haunt Jakarta-Bandung rail project
