REPUBLIKA.CO.ID, JAKARTA -- Coordinating Minister for Marine Affairs Luhut Binsar Pandjaitan said that the arrival of the China Railway Corporation delegation to his office on Tuesday was to review the progress of the Jakarta-Bandung rapid rail project. He revealed the team will be back on Friday (March 9) after two days of reviewing the project. "We will meet on Friday to discuss the project further," he stated in his office here on Tuesday.

Luhut noted that the meeting with President Deputy of China Railway Corporation, Wang Tongjum, discussed all aspects in the mass transportation project, which was in progress since 2016. Ambassador of China for Indonesia, Xiao Qian, also attended the meeting.

"We spoke about land and other permits," he noted.

However, he stated that the disbursement should be able to be finalized in the near future. The China Railway Corporation stated that the project was almost completed. "I hope it will be done as soon as possible," he added.

Moreover, land acquisition has reached about 54 percent, where China Development Bank (CDB) could disburse the fund.

Also read: Construction of Jakarta-Bandung HST to finish at 2019

As many as 55 houses are destroyed on the control of assets owned by PT Kereta Api Indonesia (Persero) Operational Area (Daop) 2 Bandung, in Sasakbeusi Village RT 05/04, Gadobangkong Village, Ngamprah Subdistrict, West Bandung Regency, West Java, on May 15, 2017. The area will be used for rapid train project. 

The 142.3-kilometer Jakarta-Bandung rapid rail project is carried out by PT Kereta Cepat Indonesia China (KCIC), a state-owned joint venture with China Railway International Corporation.

The project initially required an investment of US$5.988 billion (about Rp80,87 trillion). However, the amount increased to $6.071 billion due to insurance costs and loan protective costs to an unexpected volatility or the Debt Service Reserve Account (DSRA).

The funding portion of the project is divided into two, in which 75 percent is borne by China Development Bank (CDB) and the remaining 25 percent from KCIC shareholders equity.

The early lending of $500 million from China Development Bank will be disbursed in March 2018 after completion of the minimal land acquisition requirements.

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