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Analysis: Fatal accident puts rail project at risk of further delays, higher costs
Two Chinese workers died in an accident in the construction of the Jakarta-Bandung High-Speed Railway on Sunday, raising concerns about the project’s safety, timeline and costs.
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A worker walks inside Tunnel 1 of the Jakarta-Bandung high speed railway project in Pondok Gede, Bekasi, West Java on Tuesday, December 15, 2020. A boring machine has completed the 1.8-kilometer tunnel located under the Jakarta-Cikampek toll road. (JP/Wendra Ajistyatama)
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wo Chinese workers died in an accident in the construction of the Jakarta-Bandung High-Speed Railway on Sunday, raising concerns about the project’s safety, timeline and costs. Since it began, the project has suffered multiple accidents, delays and ballooning cost overruns.
The first major accident occurred in late 2019 when PT Kereta Cepat Indonesia China (KCIC), a joint venture between Indonesian and Chinese state-owned enterprises (SOEs) for the HSR project, was constructing the pile foundation near the Purbaleunyi toll road.
The construction coincided with the relocation of state-owned energy company Pertamina's pipeline from the north of the Cipularang toll road section to the south. A pipe broke and caused a fire that killed one Chinese worker employed by PT Ming Shu Construction, a subcontractor of the project. Lack of communication with stakeholders was said to have contributed to the incident.
Then, in December 2021, a pillar collapsed on an excavator at the high-speed rail project site in Teluk Jambe, Kerawang, West Java. PT KCIC found six pillars misaligned and instructed contractors to rework the pillars. However, the dismantling of the pillars was allegedly done without properly following the standard operating procedures, causing one of the pillars to fall on an excavator.
Recently, a work train consisting of a diesel locomotive and railway track laying machine went off the tracks and hit concrete on the sides of the project area on Sunday, leaving two Chinese workers dead and two others injured.
In response to the fatal accident, the National Transportation Safety Committee (KNKT) has opened an investigation on the accident site, halting project activities in the area. However, PT KCIC president director Dwiana “Edo” Slamet Riyadi insisted that project activities in other areas were continuing, such as the construction of the auxiliary building, stations and Overhead Contact System (OCS), preventing further delays and therefore avoiding more cost overruns.
Furthermore, Edo said KCIC would evaluate their standard operating procedures for railway track laying as well as other processes and ensure that all work carried out by the project contractor met the work safety aspects in every activity.
What’s more
In addition to accidents, the high-speed railway has caused impacts that have prompted protests. Explosives for the construction allegedly caused cracks in the walls of residential homes nearby and dried household wells in West Bandung, prompting local residents to protest the project. The project was also accused of being the culprit behind flooding inundating several areas across the Jakarta-Cikampek toll road in 2020 as the debris of the project was said to have blocked the toll road’s drainage.
KCIC added another controversy by requesting a concession extension to 80 years due to impacts of the COVID-19 pandemic, including construction delays due to mobility restrictions and falling demand caused by moderate post-pandemic economic growth.
Meanwhile, it is still facing a longstanding issue of cost overruns whose value have yet to be agreed upon. The first audit assertion by Indonesia’s Development Finance Comptroller (BPKP) estimated the overrun to be US$1.2 billion, with a final estimate that may reach $1.9 billion. Meanwhile, the cost overrun estimated by China was US$982 million.
Until both sides agree on the number, the Indonesian government will be unable to disburse the state capital injection of Rp 3.2 trillion (US$204 million) that is allocated to be spent in this accounting year, leaving the project with a lack of cash to operate and unable to finish on time.
What we’ve heard
A source at the Transportation Ministry said the institution where he was working had suggested that KCIC stop the entire high-speed train construction project following the incident with the rail-laying train in West Bandung last Sunday.
However, this tug-of-war within the government cannot be stopped. This is because KCIC must complete the Jakarta-Bandung high-speed train project before July 2023. President Joko “Jokowi” Widodo insists that this project can operate commercially by the middle of next year. That is why the master schedule has been prepared some three months ahead of time, which includes the implementation of standard operating procedures.
Recently, the plan to stop the high-speed rail project has changed entirely. The Transportation Ministry suggested that only work around the scene of the accident needed be stopped. The ministry added that the project could potentially run normally again after the work train accident’s evacuation process was completed.
"It’s as if we’re chasing a broadcast deadline," said this source. He explained further that just one day after the incident occurred, KCIC signed a master schedule for the completion of the high-speed train project. The ratification of the master schedule took place in the middle of the shareholders’ general meeting. The rest of the meeting was little more than a formality. It wasn’t until after the master schedule approval meeting that KCIC’s management finally evaluated the accident that had occurred.
The evaluation meetings took place once in the morning and once in the evening. It was during those meetings that KCIC invited all contractor companies involved in the high-speed train project.
Another source confirmed that according to the master schedule, the track laying should be completed in February 2023. That's why KCIC did not want the entire fast train project to be stopped. In order to meet the deadline, KCIC still plans to install the rails at the accident site manually, not using a machine. The current target is 1 kilometer a day for rails above the ballast. Whereas for the non-ballast track, the target is 5 km per day.
KCIC is still confident that it can complete the work by the middle of next year. “Even if the installation of this rail is stopped, only 3 kilometers will remain at the accident site. Assuming 1 kilometer takes one day, the work duration would only increase by three days.”
What KCIC has shown is contrary to minister Budi Karya's advice. He had previously asked KCIC not to be careless in testing and commissioning the Jakarta-Bandung high-speed train. He conveyed this warning shortly after the minister received a recommendation from Crossrail, a consultantcy from the United Kingdom.
In their recommendation, Crossrail advised KCIC to extend the duration of the fast train trial. In Crossrail's eyes, the trial duration set by KCIC was too short, which could have an impact on work safety when the fast-train was operating.
Disclaimer
This content is provided by Tenggara Strategics in collaboration with The Jakarta Post to serve the latest comprehensive and reliable analysis on Indonesia’s political and business landscape. Access our latest edition to read the articles listed below:
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