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Jakarta Post

Three lawsuits to proceed against Bandung-Jakarta train project

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, July 11, 2018   /   10:38 am
Three lawsuits to proceed against Bandung-Jakarta train project President Joko Widodo (center) attends the groundbreaking ceremony on Jan. 21, 2016 for a high-speed train project in Cikalong Wetan, West Bandung, West Java. (AP Photo/Dita Alangkara)

Five companies have filed lawsuits against the Bandung-Jakarta high-speed train project with the Karawang District Court in West Java, demanding a total compensation of Rp 2.02 trillion (US$141 million) for their properties affected by the project, of which three will proceed to court.

PT Gajah Tunggal, PT Karawang Cipta Persada, PT Perusahaan Industri Ceres, PT Batuah Bauntung Karawang Primaland and PT Pertiwi Lestari had filed separate lawsuits against the project, reported on Wednesday.

Karawang Cipta Persada filed two lawsuits, while the four other companies each filed one lawsuit. Of these, the court rejected both lawsuits from Karawang Cipta and one from Gajah Tunggal. The court is proceeding with the three remaining lawsuits.

Meanwhile, Sahala Lumban Gaol, president commissioner of PT Kereta Cepat Indonesia-China (KCIC) and chairman of PT Pilar Sinergi BUMN Indonesia (PSBI), said that the project was not affected by the lawsuits.

“Generally, the project is not affected. Everything is on schedule,” he said, adding that the developer had even accelerated construction on the 143-kilometer high-speed rail project, which broke ground in January 2016.

“We have started construction, while the land acquisition is being completed,” he said.

Earlier, KCIC director Chandra Dwiputra said that the land acquisition for the $5.9 billion project, funded mainly by a loan from the China Development Bank (CDB), had reached 73 percent completion, with 60 percent of the acquired land handed over to the developer.

CDB was reportedly to disburse US$1.1 billion this month in the second phase of construction. The first disbursement of $170 million took place in May. (bbn)