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KAI to receive $542.7m loan from Chinese bank for high-speed rail cost overrun
Railway operator PT KAI secures a US$542.7 million loan from China Development Bank to cover cost overrun of the Jakarta-Bandung high-speed rail project with a government guarantee and 45-year tenure.
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Passengers wait for the Jakarta-Bandung high-speed rail service called 'Whoosh“ at Halim Station in Jakarta on Nov. 11, 2023. (Antara/Hreeloita Dharma Shanti)
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tate-owned railway operator PT Kereta Api Indonesia (KAI) revealed on Tuesday that it will receive a US$542 million loan from China Development Bank (CDB) to cover the cost overrun from the Jakarta-Bandung high-speed rail (HSR) project.
KAI president director Didiek Hartantyo explained that the total cost overrun of the project amounts to $1.2 billion, of which 60 percent is borne by the Indonesian consortium and 40 percent by the Chinese consortium.
This means that the new loan will only cover the cost overrun borne by Indonesia.
"The loan from CDB is to finance the cost overrun from the Indonesian consortium’s loan portion, which amounts to $542.7 million," Didiek told kompas.com on Tuesday.
“The equity portion of the Indonesian consortium has been met by the state capital injection.”
Didiek said that the loan from CDB consisted of $325.6 million and an equivalent of $217 million in Chinese yuan, payable over 45 years.
The interest rate on the loan is 3.2 percent for the US dollar portion and 3.1 percent for the Chinese yuan portion.
