Indonesia and China agreed to a budget overrun of 18 trillion rupiahs ($1.2 billion)

  Indonesia and China agree to a US$1.2 billion cost overrun for a high-speed train.

 

JAKARTA: Indonesia and China agreed to a budget overrun of 18 trillion rupiahs ($1.2 billion) for their fast trains between Jakarta and Bandung, which, when finished in a few months, will be the first high-speed rail link in Southeast Asia.

When the project started in 2015, it was originally projected to cost roughly 66.76 trillion rupiah.

However, PT KCIC, a group of Chinese and Indonesian state-owned firms developing the railway, said that the price has since risen to 113 trillion rupiah.

 

Kartika Wirjoatmodjo, the deputy minister of state-owned enterprises, stated in a speech to the legislature on Monday (Feb. 13) that a meeting in Beijing, China, some time ago decided to overspend the budget by US$1.2 billion. He didn't provide the date or time of the meeting. "We reached an agreement on a cost overrun of US$1.2 billion. We are still analysing a number of things related to taxes, frequency clearance fees, and other things, according to Mr. Wirjoatmodjo.

 

The details of the loan from the China Development Bank (CDB) are now being discussed; a decision is anticipated in the next one to two weeks. Thus, the rapid rail project can be completed by June or July 2023, as planned.

 

The project's completion was originally scheduled for 2019, however problems with land acquisition and the COVID-19 epidemic have caused a delay. The 142-kilometer train route will take just under 40 minutes to go from Jakarta to Bandung, the capital of the neighbouring province of West Java. Currently, a normal train takes roughly three hours to get there. At the conclusion of the G20 Leaders' Summit in Bali in November of last year, Indonesian President Joko Widodo and his Chinese counterpart Xi Jinping observed the operational trial of the trains by viewing a livestream of it.

 

The high-speed rail link is a significant Indonesian Belt and Road Initiative (BRI) project. The project is expected to be completed in June 2023.

($1 = 15,190.0000 rupiah)

If you read or visit the website for more articles click on the link:

https://atifshahzadawan.blogspot.com/