TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Indonesia to recalculate high-speed railway investment

  • Fedina S. Sundaryani

    The Jakarta Post

Jakarta   /   Wed, April 12, 2017   /   01:18 pm
Indonesia to recalculate high-speed railway investment President Joko "Jokowi" Widodo (center) gestures as he inspects a model of the high-speed train that is planned to connect Jakarta and Bandung. With him are (from left to right) West Java Governor Ahmad Heryawan, the director of Indonesia China High Speed Train Hanggoro Budi Wiryawan, State-Owned Enterprises Minister Rini Soemarno, the president of the China Railway Corp. Sheng Guangzu and Chinese state councilor Wang Yong during the groundbreaking ceremony for construction in Cikalong Wetan, West Java, on Jan. 21, 2016. (AP Photo/Dita Alangkara)

The Indonesian government is recalculating the investment needed to develop the high-speed railway that is expected to connect Jakarta and Bandung in West Java.

The government needs to recalculate the investment in light of a possible cost overrun caused by several technical issues related to old infrastructure and earthquake-damaged structures, said Coordinating Maritime Affairs Minister Luhut Pandjaitan.

“There is a Dutch colonial bridge on the tracks that has shifted due to seismic movements. China does not have experience in the matter,” he said at the State Palace in Central Jakarta on Tuesday.

(Read also: High-speed railway financier wants clarity on spatial plan)

Previously, State-owned Enterprises 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 all of the project's land has been acquired.

The CDB is expected to cover about 75 percent of the US$5.2 billion of the investment needed to complete the project. (bbn)