A new regulation allows the government to guarantee the Jakarta-Bandung high-speed railway project, better ensuring the completion of the nationally strategic, but grossly over-budget, Chinese-Indonesian infrastructure project. Presidential Regulation No. 93/2021, which came into effect on Oct. 6, allows the government to use the state budget to help finance the project, whether through a loan guarantee or a state capital injection. The regulatory change comes as the project’s budget had overran by Rp 27.17 trillion (US$1.9 billion) to Rp 113.9 trillion as of September, which the State-Owned Enterprises (SOEs) Ministry has acknowledged was due to land acquisition problems, overoptimistic planning and poor project management. Funds will be channeled through PT Kereta Api Indonesia (KAI), which replaces the debt-laden construction company PT Wijaya Karya Tbk (WIKA) as the leader of the consortium.
October 12 2021, The Jakarta Post - Read 20 times