HSR Jakarta-Bandung, Indonesia-China cooperation
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GeraltofRivia
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Cannot wait to see this HSR operational!
Indos
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Indonesia-China Agree on Cost Overrun of Jakarta-Bandung High-Speed Train Project US$ 1.2 Billion
37 minutes agoKONTAN.CO.ID - JAKARTA. Indonesia and China have agreed on the cost overrun of the Jakarta-Bandung High Speed Train project.
Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan said that the installation of the 304-kilometer (Km) Jakarta-Bandung High Speed Rail had been completed. It is estimated that trials will begin at the end of May. Then, it is targeted to start operating on August 18, 2023.
"Technical teams from both countries have agreed on a cost overrun figure of US $ 1.2 billion," Luhut said in a press conference monitored from the Youtube of the Coordinating Ministry for Maritime Affairs and Investment, Monday (10/4).
Luhut said a loan worth US $ 560 million and a loan tenor of 30 years had been decided from the China Development Bank (CDB).
Also Read: Fast Train Driver Preparation, KCIC Presents Advanced Technology Simulator
Regarding loan interest, Luhut said, initially the loan interest offered was 4%. Then, after negotiations, the current loan interest has successfully dropped to 3.4%.
The interest rate is somewhat lower than the interest on loans from the United States government or US dollar bond interest from the Indonesian government. And somewhat lower than the interest of other countries which is around 6%.
Luhut said, his party would still finalize and negotiate related to loan interest. However, if the negotiation does not succeed in agreeing on the expected loan interest of 2%, Luhut considers the current loan interest agreement to be good enough.
Luhut emphasized that there is no problem related to the ability to pay for Indonesia if the loan interest will be 3.4%.
"There is no problem, how come you doubt your country. You don't underestimate," Luhut said.
In addition, Luhut is also still negotiating related to the guarantee structure. The Chinese government wants the guarantee to be done through the state budget. Meanwhile, Indonesia wants to guarantee through PT Penjaminan Infrasfrktur Indonesia (PII).
Luhut has explained, if the guarantee with the State Budget must go through a long procedure.
Also Read: Jakarta Bandung High Speed Train Construction Progress Reaches 86%
Deputy for Investment and Mining Coordination of the Coordinating Ministry Marves Septian Hario Seto added that Indonesia is encouraging guarantees through PII. Later the loan will be given to KAI. Then, KAI gave it to KCIC.
"The issue should have been settled," Seto said.
As is known, the cost overrun settlement scheme for the Jakarta-Bandung High Speed Train project was agreed through 25% equity and 75% loans.
Meanwhile, the Indonesian consortium has deposited its equity after receiving state capital participation (PMN) of Rp 3.2 trillion. Then, there is an equity deposit from a Chinese consortium. The rest will be met through a loan from the China Development Bank.
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Indos
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Older News, the loan has been given, I just want to show other important data on the project like overall investment, previous interest rate, and others.
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JAKARTA, April 10 (Reuters): Indonesia expects to conclude negotiations with China in coming weeks on an additional US$560 million loan for a high-speed rail project being built in the South-East Asian country, a senior minister said on Monday.
The cost of the line linking the capital Jakarta with the textile hub of Bandung has overshot, pushing Indonesia to seek a new loan from the China Development Bank to help cover a $1.2 billion cost overrun.
The total cost of the most high profile Belt and Road Initiative (BRI) in Indonesia has now risen to more than US$7 billion, Indonesian officials have said.
Senior Indonesian minister Luhut Pandjaitan said during a trip to Beijing last week China had cut the interest rate on a proposed additional loan to 3.4%, from 4% previously. The figure was, however, still above the 2% rate Indonesia wanted, he said.
"We are finalising the interest rate. They've agreed below 4%, but we want lower," Luhut told a news conference.
The China Development Bank in 2017 had given a consortium of Indonesian and Chinese companies building the railway a $4.55 billion loan with a 40-year tenure and a 2% interest rate.
Negotiations would also continue on the loan's maturity, deputy minister Septian Hario Seto said, adding Indonesia wanted it be similar to the 2017 loan with a 10 to 15 year grace period.
Furthermore, China wanted the Indonesian government to guarantee the loan and pass it on to PT KAI, one of the state-owned companies behind the project, while Jakarta preferred to appoint a company as a guarantor, Seto said.
China Development Bank could not immediately be reached for comment.
Jakarta has insisted that Chinese finance for such projects be delivered on a business-to-business basis, amid accusations that some other countries hosting BRI projects have fallen into a debt trap.
Still, due to the cost overrun, Indonesia had to inject 3.2 trillion rupiah ($214.77 million) of capital into PT KAI in January to help plug ballooning costs.
The railway is expected to operate commercially by August, Luhut said. ($1 = 14,900 rupiah). - Reuters
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Indonesia expects to clinch US$560 million Chinese loan for high-speed train soon
JAKARTA, April 10 (Reuters): Indonesia expects to conclude negotiations with China in coming weeks on an additional US$560 million loan for a high-speed rail project being built in the South-East Asian country, a senior minister said on Monday.
The cost of the line linking the capital Jakarta with the textile hub of Bandung has overshot, pushing Indonesia to seek a new loan from the China Development Bank to help cover a $1.2 billion cost overrun.
The total cost of the most high profile Belt and Road Initiative (BRI) in Indonesia has now risen to more than US$7 billion, Indonesian officials have said.
Senior Indonesian minister Luhut Pandjaitan said during a trip to Beijing last week China had cut the interest rate on a proposed additional loan to 3.4%, from 4% previously. The figure was, however, still above the 2% rate Indonesia wanted, he said.
"We are finalising the interest rate. They've agreed below 4%, but we want lower," Luhut told a news conference.
The China Development Bank in 2017 had given a consortium of Indonesian and Chinese companies building the railway a $4.55 billion loan with a 40-year tenure and a 2% interest rate.
Negotiations would also continue on the loan's maturity, deputy minister Septian Hario Seto said, adding Indonesia wanted it be similar to the 2017 loan with a 10 to 15 year grace period.
Furthermore, China wanted the Indonesian government to guarantee the loan and pass it on to PT KAI, one of the state-owned companies behind the project, while Jakarta preferred to appoint a company as a guarantor, Seto said.
China Development Bank could not immediately be reached for comment.
Jakarta has insisted that Chinese finance for such projects be delivered on a business-to-business basis, amid accusations that some other countries hosting BRI projects have fallen into a debt trap.
Still, due to the cost overrun, Indonesia had to inject 3.2 trillion rupiah ($214.77 million) of capital into PT KAI in January to help plug ballooning costs.
The railway is expected to operate commercially by August, Luhut said. ($1 = 14,900 rupiah). - Reuters
Indos
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This project (Greater Jakarta LRT) which is entirely developed by Indonesian SOE consortium will help the connectivity between many areas in Jakarta with HSR Jakarta-Bandung system.
The connection between MRT, BRT, LRT will happen in August, Greater Jakarta LRT is expected to commence its operation in July, a month sooner than HSR Jakarta-Bandung.
Add : Greater Jakarta LRT is different with Jakarta LRT.
Greater Jakarta LRT is entirely own by national companies (SOE), while Jakarta LRT with currently has much less distance is developed by Jakarta local government.
Jakarta LRT is also developed by national companies, Wijaya Karya (SOE) as contractor and other province owned companies, PT Jaya Konstruksi and PT Jakpro, supported by Korean loan. Because supported by Korean loan, Jakarta LRT uses train from South Korea, while Greater Jakarta LRT uses train from Indonesian SOE (PT INKA).
The connection between MRT, BRT, LRT will happen in August, Greater Jakarta LRT is expected to commence its operation in July, a month sooner than HSR Jakarta-Bandung.
Add : Greater Jakarta LRT is different with Jakarta LRT.
Greater Jakarta LRT is entirely own by national companies (SOE), while Jakarta LRT with currently has much less distance is developed by Jakarta local government.
Jakarta LRT is also developed by national companies, Wijaya Karya (SOE) as contractor and other province owned companies, PT Jaya Konstruksi and PT Jakpro, supported by Korean loan. Because supported by Korean loan, Jakarta LRT uses train from South Korea, while Greater Jakarta LRT uses train from Indonesian SOE (PT INKA).
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