Jakarta, CNN Indonesia —
The Coordinating Minister for Maritime Affairs and Investment Luhut Panjaitan will fly to China to negotiate the debt interest for the Jakarta-Bandung Fast Train Project to the China Development Bank (CDB).
Negotiations were carried out regarding the increase in debt interest caused by the soaring costs of the High Speed Train Project.
“So I will also have a high-level dialogue in Beijing, we will bring up this issue. So I think everyone will look for a win-win. Because they also see that we are doing it professionally,” he said as quoted from detik.com, Friday (31/ 3).
Swelling costs 75 percent will be patched from debt.
Currently, said Luhut, his party is still negotiating the debt interest rate.
“Now we just have to finalize the interest. They want 4 percent, we want 2 percent, now the negotiations are under way,” he said.
Luhut said Indonesia had a number of options in this regard. He also emphasized that Indonesia would not submit to anyone other than the rules.
“So we also never submit to anyone. We only submit to regulatory issues,” he said.
The cost of the Jakarta-Bandung High Speed Train has increased by US$1.2 billion or around Rp.18 trillion. BUMN Deputy Minister Kartika Wirjoatmodjo said that in the last high-level discussion held in Beijing, the amount of project expansion had been mutually agreed upon.
“Yesterday we just came from Beijing and we have agreed on the cost overrun agreed by Indonesia and China, so that it can be disbursed immediately to KCIC,” said the man who is familiarly called Tiko in a working meeting with Commission VI of the DPR, Monday (13/2) .