Minister Rini Soemarno unaware of guarantee on high-speed train project

Jakarta (ANTARA News) - State Enterprises Minister Rini Soemarno confirmed that she was unaware whether the Jakarta-Bandung high-speed train (HST) project was included as a strategic project in a presidential decree, which receives a guarantee from the government.

"No, I do not know about it. Please do not ask me," she stated after attending an extraordinary plenary meeting of the Regional Representative Council (DPR) here on Friday.

Soemarno acknowledged to have not yet read the presidential decree in detail, particularly with regard to the Jakarta-Bandung HST project.

It was reported that the Jakarta-Bandung HST project is included as one of the strategic projects in Presidential Decree (Perpres) No 3 of 2016 on the Acceleration of National Strategic Projects where projects in the Perpres are guaranteed by the government.

"I have not yet even read the presidential decree. You can just inquire about it from the state secretary or cabinet secretary," she affirmed.

According to Perpres No 107 of 2015 on the Acceleration of Development of the Jakarta-Bandung HST, the project is not guaranteed by the government since from the onset, it was designed as a business-to-business project, which is not funded by the state budget.

In Perpres No 3 of 2016, the project is, however, guaranteed by the government.

On the same occasion, Director of PT Kereta Cepat Indonesia-China Hanggoro Budi Wiryawan revealed that his side was seeking clarifications regarding the fate of the project in the concession agreement.

"The rights and responsibilities of all parties must be clear. So, we hope there would be further talks on it," noted Hanggoro.

Hanggoro explained that when a default occurred amid the projects development, there will be a "guarantee," or clarity regarding the fate of the project as stated in the concession agreement.

"In essence, if there is a default on the part of the first party, we will not file a claim with the government. But, if there is a change in the regulation, it is just logical (for us) to ask for a renegotiation," noted Hanggoro.

However, he denied claims of having urged to include the Jakarta-Bandung HST project in Perpres No. 3 of 2016.

"I am only doing my job. We have never sent a letter about it. I do not have the authority to do it," he clarified.

In the meantime, Sahala Lumban Gaol, the commissioner of the Indonesian state-owned company PT Pilar Sinergi, which owns 60 percent stake in the HST project, had no idea on the inclusion of the Jakarta-Bandung HST project as one of the strategic projects in Perpres No. 3 of 2016.

"I do not know it. But, the fact is that it has been included in it, and there must be someone who has proposed it, and it must be someone at the coordinating minister's level. So, please seek clarifications from the coordinating ministry," remarked Lumban Gaol.

Comments