INDONESIA
Tempo-May 18

The mega rail project got off to a rocky start because of poor planning. And it looks like the project will miss its scheduled completion deadline set for next year. Even the first loan of US$170 million, or around Rp2.38 trillion, disbursed from the China Development Bank three weeks ago will not help much. It would be nearly impossible to complete such a massive amount of work in a short time: from land acquisition and construction to building residential and shopping centers around the four stations.
It’s also important to ensure that the US$6.071billion project will start to make profit once construction is completed. The Kereta Cepat Indonesia China consortium must be able to maintain and operate “bullet trains” economically without tariff subsidies. Should the fast Jakarta-Bandung train operate at a loss, the consortium would find it hard to repay the loan.
Read more at: https://en.tempo.co/read/news/2018/05/18/314918554/Burdensome-High-Speed-Train
First published in: Tempo