Project debt Fast Car Jakarta-Bandung will be guaranteed by the APBN. Minister of Finance Sri Mulyani has just signed Minister of Finance Regulation (PMK) Number 89 of 2023 concerning Procedures for Implementing Government Guarantees to Accelerate the Implementation of Fast Train Infrastructure and Facilities between Jakarta and Bandung. The rules will come into effect when they are promulgated, namely September 11 2023.
Sri Mulyani also opened up about the reason the government guaranteed the debt for the Jakarta-Bandung High Speed Train project. The guarantee itself is given as a step to handle the occurrence of cost overruns or swelling costs of the fast train project.
He said that Presidential Decree 93 of 2021 concerning the Acceleration of the Implementation of Fast Train Infrastructure and Facilities between Jakarta and Bandung also explained that debt guarantees for the fast train project were allowed.
“Like the fast train, it has been regulated by Presidential Decree 93. It says there is a guarantee, because there is a cost overrun. The cost overrun has also been audited by BPKP and BPK. There are recommendations for handling cost overrun,” said Sri Mulyani when met at the DPR Building. , Central Jakarta, Tuesday (19/9/2023).
Sri Mulyani also said that the Jakarta-Bandung Fast Train Committee consisting of herself, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Transportation Budi Karya Sumadi, and Minister of BUMN Erick Thohir saw that so far KAI had more income than coal transportation in Sumatra.
This income is considered to be able to pay off the fast train debt. In this way, the government is confident that the guarantee provided for the fast train debt withdrawal will not burden the APBN.
“In terms of risk, we are in the (fast train) committee, consisting of Mr. Luhut, the Minister of Transportation, the Minister of BUMN, and the Minister of Finance, determining that PT KAI has additional income from coal traffic in Sumatra, with PTBA. From there we will get “revenue or income is a source for PT KAI to have the financial strength to pay back,” explained Sri Mulyani.
The Jakarta-Bandung Fast Train Committee also asked the Ministry of BUMN to create some kind of financial supervision scheme for PT KAI. This is also done to ensure the company can pay its debts, so that the guarantee provided does not need to be provided.
“Secondly, we also ask the Ministry of BUMN to create some kind of monitoring mechanism regarding the financial condition of PT KAI, including monitoring costs and revenue and creating a sinking fund that is able to ensure that the guarantee is not called, but is realized,” said Sri Mulyani.
Sri Mulyani also said that PT PII as the guarantor agency of the Ministry of Finance would strengthen its capital structure to guarantee fast train debt.
Fast Car Swell
Financing for the Jakarta-Bandung high-speed train project has ballooned. The Jakarta-Bandung high-speed train was initially estimated to only cost US$ 5.5 billion, then increased to US$ 5.8 billion and increased again to US$ 6.07 billion.
Finally, after long negotiations, in early 2023 this project is set to increase in cost by US$ 1.2 billion, meaning that the High Speed Train project currently has total financing of US$ 7.27 billion. One way to fulfill this swelling is by increasing debt to China.
The financing of the high-speed train project costs will be covered by depositing additional equity from the KCIC consortium. The remaining costs were met by credit obtained from the China Development Bank (CDB), therefore Indonesia had to increase its debt to China.
According to calculations by the Deputy Minister of BUMN Kartika Wirjoatmodjo, it is possible that the additional debt owed to the CDB will reach US$ 550 million or Rp. 8.5 trillion. This figure was obtained from the loan portion of 75% of the total swelling costs of US$ 1.2 billion.
“The loan portion is around US$ 550 million. We are currently applying for the loan to the CDB,” said the man who is familiarly called Tiko at the DPR RI Building, Central Jakarta, last Monday (13/2/2023).
Well, apart from increasing debt. Fulfillment of high-speed train costs is done by making an equity deposit to KCIC. The nominal is 25% of the total swelling costs of US$ 1.2 billion.
The government has injected state capital participation (PMN) of IDR 3.2 trillion into PT Kereta Api Indonesia (Persero) or KAI to fulfill the equity portion of the Indonesian consortium in KCIC. KAI itself is the largest shareholder of the Indonesian consortium in KCIC, the railway company can be said to lead the Indonesian consortium in KCIC.
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