Ministry of Transportation Issues Permit of Jakarta-Bandung High-Speed Railway

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 18 Maret 2016
Category: News
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Minister of Transportation Ignasius Jonan witnesses the signing of an agreement between Director General for Railways and Managing Director of Kereta Cepat Indonesia China, at the Ministry of Transportation, in Jakarta, on Wednesday (16/3)

Ministry of Transportation issued a public railway infrastructure business permit for PT Kereta Api Cepat Indonesia China (KCIC) to develop Jakarta-Bandung high-speed railway project. This permit was regulated in Minister of Transportation Decree Number 160 of 2016 on the Granting of Jakarta and Bandung Public High-Speed Railway Infrastructure Business Permit dated 17 March 2016.

A day before, on Wednesday (16/3), the Ministry of Transportation and PT KCIC had signed a concession agreement, which gives PT KCIC a 50 year-concession span, starting from 31 May 2019, and it cannot be extended except for force majeure, for example, a natural disaster. The concession agreement was signed by Minister of Transportation Ignasius Jonan and Managing Director of PT KCIC Hanggoro Budi Wiryawan.

Director General for Railways Hermanto Dwiatmoko explained that the permit is valid for 30 years, effective from the date of the issuance of this permit. “This business permit can be extended for 20 years in maximum,” he said, at the Ministry of Transportation office, on Thursday (16/3).

The holder of Public Railway Infrastructure Business Permit, he added, is obliged to obey the laws and regulations of railways and three years in maximum, it must complete the technical plan, Environmental Management Scheme (UKL) and Environmental Monitoring Scheme (UPL), land procurement, and it shall request for public railway infrastructure construction permit before starting physical construction.

“Moreover, the holder of this permit must report the implementation of these activities every year to the Ministry of Transportation as the licensor,” Hermanto affirmed.

He added that this permit could be revoked if PT KCIC (as permit holder) does not carry out its obligations as regulated in the Ministerial Decree. The business permit can also be revoked if in one year after the permit is issued, PT KCIC does not carry out the Environmental Impact Analysis (Amdal) as well as UKL and UPL.

In addition, this business permit could also be revoked if after 3 (three) years, PT KCIC has not completed the Amdal as well as UKL and UPL, and there is no request for an extention. “If PT KCIC is bankrupt, the permit will certainly be revoked,” Hermanto said.

Since the business permit has been issued, the Government hopes PT KCIC can immediately finish their obligations as written in the Decree.

In line with the focus of Minister of Transportation Ignasius Jonan to improve the management and regulation as well as to create good governance, permission requests that are submitted to the Ministry of Transportation shall be processed immediately as long as they meet the requirements. (HUMASDJKA/ES)(MMB/YM/Naster)

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