Jakarta (ANTARA) - Indonesia and China have agreed on the cost overrun in the Jakarta-Bandung Rapid Train Project, the State-Owned Enterprises Ministry said.

"We just returned from Beijing, China, some time ago, during which we have agreed on the cost overrun, both by Indonesia and China, so the funding can be disbursed immediately to PT KCIC," Deputy Minister II of the State-Owned Enterprises Ministry Kartika Wirjoatmodjo stated here on Monday.

Wirjoatmodjo delivered the statement at a meeting with Commission VI of the House of Representatives that was accessed here on Monday.

He also commended members of Commission VI for their support and approval for the increase in state equity participation (PMN) to surmount the rising costs.

"Currently, we are in the middle of negotiating the term of loan from China Development Bank (CDB), which had been expected to be resolved in one or two weeks, so later the rapid train project can finish according to the (operational schedule set in the) timeline, which is either June or July 2023," he stated.

Wirjoatmodjo also expects that once the rapid train became operational, it could be interconnected with the light rail transit to coincide with the commemoration of National Independence Day on August 17, 2023.

Commission VI of the House of Representatives approved Rp 3.2 trillion (US$210.4 million) of additional state capital investment for 2022 for PT Kereta Api Indonesia (Persero) to complete the Jakarta-Bandung Rapid Train project.

The House of Representatives urged the State-Owned Enterprises Ministry to ensure that the additional funding can be utilized by the company to complete the project on time, according to its deadline in June 2023, for the best interests of society and for driving economic growth.

The Jakarta-Bandung Rapid Train project is part of the national strategic projects established through cooperation between Indonesia and China.

The project utilizes high technology and adopts knowledge and technology transfer, so that workers in Indonesia can hone their skills.

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Translator: Aji Cakti, Mecca Yumna
Editor: Tia Mutiasari
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