TEMPO.CO, Jakarta - The Whoosh high-speed train, a project now burdened with significant debt, is the focus of a collaborative effort between Danantara, an investment management agency, and PT Kereta Api Indonesia (KAI). Their goal is to find a solution for PT Kereta Cepat Indonesia China (KCIC), the company that operates the train.
Dony Oskaria, Chief Operating Officer of the Investment Management Agency Danantara, confirmed in Jakarta on a recent Friday that this exploration process is underway and is expected to be completed shortly. He noted that the resolution for the Whoosh project would be integrated into Danantara's Work Plan and Budget (RKAP) for the current year.
"We are currently exploring. The process will be completed, as previously stated by the President Director of PT KAI in the DPR. It will be included in our RKAP for this year," Dony stated, as quoted by Antara on last Monday.
A meeting between the two entities has been confirmed. Previously, during a Hearing with Commission VI of the Indonesian House of Representatives on Wednesday, August 20, PT KAI's President Director, Bobby Rasyidin, had proposed restructuring the Whoosh project.
"We will also delve into the issue of KCIC. This is indeed a time bomb. We will coordinate with Danantara for its resolution, including steps for improvement and portfolio restructuring," he said.
A Timeline of KCIC's Journey
Initial Opposition from Minister Ignasius Jonan
In early 2016, then-Minister of Transportation, Ignasius Jonan, expressed his opposition to the Jakarta-Bandung high-speed train project, citing that PT Kereta Cepat Indonesia China (KCIC) had not met several requirements. He even admitted his uncertainty regarding whether the consortium had deposited the minimum required capital of Rp1.25 trillion for the operator.
Consequently, Jonan was doubtful that the project's groundbreaking, scheduled for January 21, would proceed as planned. "Many things have not been fulfilled yet, so I cannot confirm it," he remarked at the Presidential Palace on Monday, January 4, 2016.
In addition to the capital contribution, Jonan highlighted several outstanding permits, including revisions to the route permit and the Environmental Impact Assessment (Amdal). He also mentioned that at certain points, the high-speed train line intersects with the route of the light rail transit (LRT) project.
Escalating Costs and Financial Strain
In September 2021, PT KCIC affirmed its commitment to the late 2022 operational target for the Jakarta-Bandung high-speed train, despite the project's escalating costs.
"This issue does not halt the operational readiness or the acceleration of construction," said Mirza Soraya, Corporate Secretary of KCIC, on Tuesday, September 7, 2021. She emphasized that all preparatory steps for the operation were proceeding simultaneously.
Project costs were estimated to increase by approximately US$1.9 billion, or Rp27.17 trillion, bringing the total budget to Rp113.9 trillion. From this amount, the Indonesian consortium's additional burden was estimated at around Rp4.1 trillion, with a proposal to cover this through State Capital Participation (PMN) in 2022.
Multiple Construction Incidents
The construction of Whoosh has been marked by several incidents. On December 5, a support pillar for the rails being dismantled collapsed and struck an excavator in DK46, Telukjambe Barat, Karawang.
A similar incident had previously occurred on October 22, 2019, when drilling activities for the project triggered an explosion of a PT Pertamina (Persero) pipeline, resulting in the death of a worker. At the time, the President Director of PT Wijaya Karya Tbk, Tumiyana, stated that the incident was caused by a misunderstanding of work procedures due to language barriers.
Subsequently, on March 2, 2020, PT KCIC had to temporarily halt construction after the project's activities led to flooding on the Jakarta-Cikampek toll road. Acting Director General of Construction Development at the Ministry of Public Works and Housing, Danis Sumadilaga, explained that the flood occurred because the drainage channel was obstructed by the project's work.
Whoosh Launch and Funding Details
On October 2, 2023, PT KCIC officially launched Whoosh. This project is designated as a National Strategic Project (PSN) under Presidential Regulation Number 3 of 2016 and was developed without state budget support or government guarantees.
The project's funding was sourced from a 75 percent loan from the China Development Bank, with the remaining 25 percent borne by shareholders. The consortium comprises PT Pilar Sinergi BUMN Indonesia (60 percent) and Beijing Yawan HSR Co. Ltd. (40 percent). The 142-kilometer line includes four primary stations: Halim (Jakarta), Karawang, Padalarang, and Tegalluar (Bandung).
The Tender Collusion Case
In 2024, reports emerged of a public complaint against PT CRRC Sifang Indonesia, the tender committee, and PT Anugerah Logistik Prestasindo. Investigators from the Business Competition Supervisory Commission (KPPU) suspected both parties of being involved in collusion that hindered the chances of other bidders, potentially violating Article 22 of Law Number 5 of 1999 concerning the prohibition of tender collusion.
In response, PT Kereta Cepat Indonesia China (KCIC) affirmed its non-involvement in the procurement process for the Electric Multiple Unit (EMU) transport services for the project. "KCIC is not involved in the procurement process," stated Eva Chairunisa, General Manager of Corporate Secretary at KCIC, on Tuesday, December 17, 2024.
Angga Sukma Wijaya, Caesar Akbar, Vindry Florentin, Yudono Yanuar, and Antara contributed to the report
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