Indonesia in Talks with China on High-Speed Rail Cost Overrun

By Editorial Team 02/08/2022
Kereta Cepat Indonesia China
Summary

The Indonesian government is in talks with China to solve the cost overrun of the Jakarta-Bandung high-speed rail project. Coordinating Economic Ministry spokesperson Alia Karenina said that the Chinese side also asked Indonesia to bear the cost overrun. She revealed that the government would still have to assess the request and ensure that its payment would not violate any regulation. "The Financial and Development Supervisory Agency [BPKP] estimated that the cost overrun reached US$1.18 billion or Rp 16.8 trillion," Alia elaborated on Sunday.

Previously, Coordinating Economic Ministry's deputy for regional development and spatial planning coordination Wahyu Utomo stated that the China Development Bank (CDB) asked Indonesia to cover the cost overrun. However, the Finance Ministry was only interested in discussing the project's progress, not cost overrun.

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