The Coordinating Minister for Maritime Affairs and Investment has returned to public attention after speaking candidly about the financial condition of the Jakarta-Bandung High-Speed Rail (KCJB) project. In his statement, he mentioned that the project’s financial problems have existed since the initial planning stages, even before the project fully began.
“The finances were indeed rotten from the start,” he stated in an interview session. This statement immediately caught public attention and sparked widespread discussion about transparency and financial management of this national strategic project.
No State Budget Funds Used
He emphasized that the government did not use funds from the State Budget (APBN) to cover the high-speed rail project’s debts. He said that this project’s financing comes from a cooperation scheme between Indonesian state-owned enterprises and Chinese companies through commercial loans.
“No state budget funds were used. This is a business project, not entirely a government project,” he asserted. He added that the government only plays a role in ensuring the project’s sustainability and supervising to prevent fund misuse.
Root Problems Since Project’s Beginning
According to him, the root of this project’s financial problems emerged since the initial planning stage. Many aspects were not calculated thoroughly, ranging from land acquisition costs, construction costs, to currency exchange rates that affect foreign debt.
“At that time, the calculations were unrealistic. I’ve said since long ago, this is a large project that must be calculated carefully,” he explained. He also mentioned that several technical decisions in the past caused the project to experience quite significant cost overruns.
Hope for Improvement and Efficiency
While acknowledging financial problems, he emphasized that the government remains committed to completing the high-speed rail project thoroughly. He hopes that in the future, comprehensive evaluations can be conducted so similar mistakes are not repeated in other large infrastructure projects.
“We have learned a lot. Going forward, all large projects must use stricter feasibility studies and transparent financial management,” he said.
He also requested that involved state-owned enterprises be more disciplined in debt management and cost efficiency. According to him, financial supervision is the key to ensuring national projects don’t become economic burdens in the future.
Public Demands Transparency
This statement has generated various responses from the public and economic observers. Some parties appreciate the openness in conveying the actual conditions, while others request the government to explain in detail the steps to rescue the project.
“Transparency is important so the public knows where this investment funding is headed. Large projects like the high-speed rail should not create long-term burdens,” stated one national economic observer.
Strategic Project Continues Operating
Despite facing various challenges, the Jakarta-Bandung High-Speed Rail project is now operational and has become a symbol of Indonesia’s modern transportation progress. The government hopes this project can soon reach break-even point in the coming years.
He concluded his statement with optimism that the project, although full of dynamics, will become an important lesson for national infrastructure governance. “What’s important is that we learn from mistakes. Don’t repeat what was rotten at the start, but fix it along the way,” he said.
