"We do need to address the debt issues. However, it must not impede our greater plan to expand connectivity from Jakarta to Surabaya," AHY stated at the Presidential Palace complex here on Monday evening (October 20).
The top minister confirmed that the discussion between government stakeholders to settle the Jakarta-Bandung HSR project debt is ongoing.
Danantara Indonesia sovereign wealth fund, the Finance Ministry, and state-owned railway company PT Kereta Api Indonesia (KAI) are among the parties involved in the talks, he added.
AHY also said that his ministry is coordinating with the Finance Ministry to seek the most convenient and sustainable way to address the debt issues.
"I could not inform the final decision yet since we are considering and calculating all the options, including how Danantara will handle this issue and how the Finance Ministry will play their role," the coordinating minister said.
President Prabowo Subianto's advice is also being sought by the government to resolve the high-speed railway project debt, he added.
"As we resolve the issue, we can move to the new discussion topic on the development of the next HSR phase connecting Jakarta and Surabaya," AHY stated.
The total investment for the Jakarta–Bandung high-speed railway project reached US$7.27 billion, or approximately Rp120.38 trillion.
About 75 percent of the funding was obtained through a China Development Bank (CDB) loan with an annual interest rate of 2 percent.
Danantara is currently considering two options to settle the debt: allowing the government to take over the infrastructure or injecting new capital into KCIC’s parent company, PT Kereta Api Indonesia.
However, no final decision has been made, while the government continues to encourage Danantara to take full responsibility for the repayment.
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Translator: Fathur Rochman, Nabil Ihsan
Editor: M Razi Rahman
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