According to Dwiyana Slamet Riyadi, president director of PT KCIC, China Development Bank funded the “Belt and Road” project (BRI). The high-speed train project from Jakarta to Bandung will be 2 billion dollars over budget.
PT KCIC is a consortium of Chinese and Indonesian companies building the 142 km (88.23 miles) rail line connecting the capital Jakarta to the city of Bandung in West Java.
According to the Voice of America, Dwiyana told a parliamentary hearing on Monday, February 7, that this project also faces a cost overrun of about $2 billion, bumping up estimated costs to 113 trillion rupiah ($7.85 billion).
“Looking at the investment value, number of passengers and ticket prices, it’s very difficult to follow the earlier feasibility study where the assumption of a return on investment will occur within 20 years,” Riyadi stated that with suggested ticket prices ranging from 150,000 to 350,000 rupiah (10-25 dollar), reached a breakeven point in 40 years.
According to data released by the India-China High-speed Railway Company, the Jakarta-Bandung high-speed railway was 79.9% in 2021 and is scheduled to be completed in 2023. There were land title problems once work began in 2018, and its high economic expenses and negative environmental impact.
In early December 2021, during the construction of the Jakarta-Bandung high-speed railway, there was an accident when the pier slipped and knocked down two excavators. Fortunately, the workers escaped in time without causing any casualties.
In addition, Dewiana also stated at the hearing that as the Indonesian government plans to move the capital from Jakarta to Borneo Island in 2024, the completion of the high-speed rail linking Jakarta and Bandung will inevitably face a sharp decline in passenger traffic. Timing for investment recovery will also be greatly prolonged.