Indonesia's transport ministry and three consultants have pushed back on a China-funded consortium's plan to start full commercial operations of the country's $7.3 billion first high-speed train service in August, an internal document shows.
A flagship project of President Joko Widodo - and part of China's Belt and Road Initiative - the 142 km line from capital Jakarta to the large city of Bandung being built by a consortium of Indonesian and Chinese state firms is already $1.2 billion over the initial budget and four years behind schedule.
Months before its proposed commercial launch in August, the showpiece project is beset by fresh problems, with the consortium's Chinese participants wanting a full operational worthiness certificate for the line despite an incomplete station, a 48-page presentation reviewed by Reuters shows. WIKA corporate secretary Mahendra Vijaya said the company had the financial capacity to finish the remaining work, but it also needed the consortium to pay it for work already done.
Septian Hario Seto, a senior official with the investment coordinating ministry, said debt negotiations were underway with CDB, focused on the interest rate. Delays and cost blowouts are not uncommon in high-speed rail projects globally, including in Western countries.for its investment to become profitable, twice as long as initial estimates, an executive said last year.
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