JAKARTA — China's flagship project to build a multi-billion-dollar high-speed rail link between the Indonesian cities of Jakarta and Bandung has hit a snag, less than a week after the high-profile launch by Indonesian President Joko Widodo.
The Indonesian government said this was due to incomplete paperwork and issues that could not be resolved. As such, the government could not issue the building permit as well as the concession agreement to the contractor, PT Kereta Cepat Indonesia China (KCIC), said Indonesian Transport Minister Ignasius Jonan.
"The concession agreement is incomplete, it is still being processed and under evaluation. Evaluation (involves) a lot of details," he told reporters in Jakarta yesterday.
As for the building permit, Mr Jonan said it should include technical analysis data such as a hydrology study, which he said has yet to be submitted by the contractor. "I promise to issue the relevant permits when KCIC submits the documents and fulfil all the relevant requirements," he added.
Yesterday, lawmakers also urged the government to review the project — after it was reported that one of the railway's stations would be located on land currently within an Air Force base in Halim.
"A military airbase is a vital facility and part of our defence system for Jakarta. It has a jet fighter squadron, military Airbus and the presidential airplane. The base is also part of an integrated defence system ... so it would be a cause for concern if the land should be given up," said lawmaker TB Hasanuddin, who questioned why the defence military was giving up more than 49 hectares for the station, when the project itself only needed slightly more than a sixth of the land.
On Jan 21, Mr Widodo presided over a groundbreaking ceremony on the US$5.5 billion (S$7.85 billion) project to build South-east Asia's first high-speed rail service, linking the Indonesian capital of Jakarta with the city of Bandung in western Java.
The 142km railway, expected to start operating in 2019, will stretch from Halim in East Jakarta to Tegalluar, 13km south-east of the Bandung city centre.
There will be four stops along the railway — Halim, Karawang, Walini and Tegalluar — around which the government is planning to launch massive residential and commercial property development projects to support population growth in the region.
The KCIC joint venture between China Railway International and a consortium of Indonesian state-owned companies is responsible for the railway and property development, with financing for the project from the China Development Bank.
