Jakarta, Jan 29 (Antara) - Indonesia's Rp70 trillion worth Jakarta-Bandung high speed train (HST) project needs a clear legal basis to ensure that the project has a proper business status and remains valid.
Right from the beginning, the government has pointed out that the Jakarta-Bandung HST project will be carried out through a business-to-business model and government guarantees or state budget funds would not be involved.
Recently, however, certain quarters have raised the issue that the project was included as one of the strategic projects in a presidential decree that involves a guarantee by the government. This comes even though a previous presidential regulation had the stipulation that the project was not backed by any government guarantee.
"There must be a binding legal basis to serve as its legal umbrella so that it will not face constraints later on," legislator Sartono Hutomo of Commission VI on industry and investment affairs of the House of Representatives (DPR) said on Wednesday.
With legal certainties as stated in regulations, the high speed train project can proceed until it is completed, even if the current government changes. "If the fast train project is not completed and there is a change in government, it could face constraints if the next government decides to stop it or does not include it in its priority programs," he said.
The fast train project also needs careful studies and assessment with regard to its impact on the environment (Amdal), social impact and economic viability.
"It needs careful Amdal, social and economic analyses," the legislator said.
On investment calculation, this project can reach a breakeven point in five years after the investment has reached Rp70 trillion. "With a distance of 146 kilometers and a speed of 250 kilometers per hour, the project is less effective because it is wasting speed (the distance is too short)," he said.
The fast train should also be adjusted to the market segment. If the ticket price is set at Rp300 thousand, this transportation mode will largely be for middle and upper class people only. "If the train carries 20-30 thousand passengers, it will need tens of years to exceed the breakeven point," he said.
However, he said his side welcomes the HST project but it needs a clear legal umbrella. After all, controversies over its legal basis hit the limelight in recent days.
The project is reportedly included in a presidential regulation (Perpres) on strategic projects guaranteed by the government.
In the meantime, 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," Minister Rini stated. Rini 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.
Regarding the issue, President Joko Widodo (Jokowi) has promised to publicly explain in detail the Jakarta-Bandung high speed train (HST) project.
"I will explain in detail its process from the beginning and till the end (and tell the people) how many meetings we had, how much it will cost and all other aspects," President Jokowi said after attending the Friday prayer at the City Hall Fatahilla Mosque on Friday.
The President said he was making preparations to explain the HST project. "We are still preparing material. We will explain it publicly. There is no cover-up," Jokowi, who was accompanied by Cabinet Secretary Pramono Anung, said.
Earlier, Special Presidential Staff on Communications Johan Budi SP had said President Jokwi will be open to inputs from various sides regarding the Jakarta-Bandung fast train project for which groundbreaking ceremony was held some time ago.
"After the groundbreaking ceremony for the implementation of the high-speed train project, there are inputs, which we have read about in public, including some from members of the Parliament and also from community groups. Of course, the President listens to them," Johan Budi S.P., presidential special staff in charge of communication, stated here on Wednesday.
President Jokowi officiated at the groundbreaking of the Jakarta-Bandung high-speed railway project in Cikalong Wetan, Bandung District, West Java Province, on January 21.
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 project's 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 Sahala. ***3***
(A014/INE/B003)EDITED BY INE(T.A014/B/BESSR/Bustanuddin) 29-01-2016 22:39:5 |
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