China Development Bank (CDB) has disbursed $448 million (approximately IDR 6.9 trillion) to Indonesian Railway Company (KAI). This loan will be used to cover cost overruns for the Jakarta-Bandung High-Speed Railway, also known as the "Whoosh" high-speed rail project.
In a significant document submitted by KAI to the Financial Services Authority, the loan is denominated in both US dollars and Chinese yuan. The loan is divided into two parts: Tranche A, amounting to $230.9 million (approximately IDR 3.6 trillion), was disbursed on February 7. Secondly, Tranche B is RMB 1.54 billion (approximately IDR 3.3 trillion), disbursed on February 5.
The loan was transferred to the Indonesian consortium Pilar Sinergi BUMN Indonesia (PSBI), a state-owned enterprise holding 60% equity in the Jakarta-Bandung High-Speed Railway project. The consortium consists of four state-owned companies: Indonesian Railway Company, state-owned construction company Wijaya Karya, state-owned toll road operator Jasa Marga, and state-owned plantation company Perkebunan Nusantara VIII. KAI is the largest shareholder.
The cost overrun amount for the high-speed rail project has been agreed at $1.2 billion (approximately IDR 18.76 trillion). The cost overruns are due to differences in the cost of building high-speed rail between China and Indonesia, mainly from land acquisition, signaling systems, and other expenses.
The loan from China Development Bank will become capital for KAI. The Indonesian government previously applied for a $550 million (approximately IDR 8.3 trillion) loan from the bank in early 2022. However, the disbursement was delayed because the interest rate or interest requested by Indonesia did not meet the bank's standards.
In the high-speed rail project, PSBI and Beijing Yawan High-Speed Railway Co., Ltd. established a joint venture named China-Indonesia High-Speed Railway Joint Venture (KCIC). This joint venture will be the operator of the "Whoosh" high-speed railway. The "Whoosh" high-speed railway officially launched on October 2 last year, offering two weeks of free rides, and then began commercial operations on October 17. Public response to Southeast Asia's first high-speed railway has been enthusiastic, as seen from the number of passengers; within less than two months of commercial operation, cumulative passenger trips exceeded 1 million.
Source: Indonesia Business Daily
政策信息
China Development Bank Allocates Funds to Indonesian Railway Company to Solve High-Speed Rail Cost Overruns
China Development Bank (CDB) has disbursed $448 million (approximately IDR 6.9 trillion) to Indonesian Railway Company (KAI). This loan will be used to cover cost overruns for the Jakarta-Bandung High-Speed Railway, also known as the "Whoosh" high-speed rail project.
In a significant document submitted by KAI to the Financial Services Authority, the loan is denominated in both US dollars and Chinese yuan. The loan is divided into two parts: Tranche A, amounting to $230.9 million (approximately IDR 3.6 trillion), was disbursed on February 7. Secondly, Tranche B is RMB 1.54 billion (approximately IDR 3.3 trillion), disbursed on February 5.
The loan was transferred to the Indonesian consortium Pilar Sinergi BUMN Indonesia (PSBI), a state-owned enterprise holding 60% equity in the Jakarta-Bandung High-Speed Railway project. The consortium consists of four state-owned companies: Indonesian Railway Company, state-owned construction company Wijaya Karya, state-owned toll road operator Jasa Marga, and state-owned plantation company Perkebunan Nusantara VIII. KAI is the largest shareholder.
The cost overrun amount for the high-speed rail project has been agreed at $1.2 billion (approximately IDR 18.76 trillion). The cost overruns are due to differences in the cost of building high-speed rail between China and Indonesia, mainly from land acquisition, signaling systems, and other expenses.
The loan from China Development Bank will become capital for KAI. The Indonesian government previously applied for a $550 million (approximately IDR 8.3 trillion) loan from the bank in early 2022. However, the disbursement was delayed because the interest rate or interest requested by Indonesia did not meet the bank's standards.
In the high-speed rail project, PSBI and Beijing Yawan High-Speed Railway Co., Ltd. established a joint venture named China-Indonesia High-Speed Railway Joint Venture (KCIC). This joint venture will be the operator of the "Whoosh" high-speed railway. The "Whoosh" high-speed railway officially launched on October 2 last year, offering two weeks of free rides, and then began commercial operations on October 17. Public response to Southeast Asia's first high-speed railway has been enthusiastic, as seen from the number of passengers; within less than two months of commercial operation, cumulative passenger trips exceeded 1 million.
Source: Indonesia Business Daily
