Jakarta- Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan stated that the cost overrun issue pertaining to the Jakarta-Bandung Rapid Train (KCJB) project would be resolved in the following week.

“On the (matter of) cost overrun of the rapid train (project), there is no problem. We want to resolve it next week in Beijing, China,” the minister noted here on Thursday.

Pandjaitan expected that it would be addressed.

Commission VI at the House of Representatives has approved Rp3.2 trillion (US$215 million) in additional 2022 state capital investment for PT Kereta Api Indonesia to complete the KCJB project that was impeded by cost overruns.

The approval was given since PT KAI had completed an audit by the Financial and Development Supervisory Agency (BPKP) and the KJCB Project Committee on the cost overrun, deputy chairman of Commission VI at the House of Representatives Aria Bima affirmed.

The House of Representatives urged the State-Owned Enterprises Ministry to ensure that the company could utilize the additional funding to complete the project on time in accordance with the deadline set at June 2023.

It was also expected to be cost-effective so as to avoid cost overruns again. Thus, when the cost is right, it does not cause cost overruns, and the right quality and right use aid in proffering benefits to society and to facilitate economic growth.

The KCJB is part of the national strategic project pursued through cooperation between Indonesia and China.

The project uses high technology and knowledge transfer, so that domestic workers have an opportunity to improve.

The project has been successfully tested and was witnessed by President Joko Widodo and Chinese President Xi Jinping through virtual means on the sidelines of the Indonesia-China Bilateral meeting following the G20 event in Bali.

Source: Antara News