President Appoints Wika Leads the SOEs Consortium to Handle Fast Train Project

Wika Leads the SOEs Consortium to Handle Fast Train Project

With consideration to improve transportation services to support the development in the area of Jakarta – Bandung, the government deems it necessary to undertake an accelerated implementation of infrastructure and facilities fast trains between Jakarta and Bandung. Related to this, President Joko Widodo, on October 6, 2015 has signed Presidential Regulation Number 107 Year 2015 on the Acceleration of Infrastructure and Facilities Provision of Jakarta – Bandung Fast Trains.

In the regulation is affirmed, in order to accelerate the implementation of infrastructure and facilities the fast train, the Government commissioned the consortium of state-owned companies led by PT Wijaya Karya (Persero) Tbk.

The consortium of state-owned enterprises referred to consists of: a. PT Wijaya Karya/Wika (Persero) Tbk; b. PT Kereta Api Indonesia (Persero); c. PT Jasa Marga (Persero) Tbk; and d. PT PTPN VIII.

“Consortium of state-owned enterprises referred to can be realized in the form of a joint venture company,” reads Article 1 (3) of the regulation.

Implementation of fast train infrastructure and facilities referred to in this regulation is mentioned, consists of trace route Jakarta-Walini-Bandung, which further determined in accordance with the provisions of the legislation.

The Presidential Regulation also emphasized that all the permits in connection with the implementation of fast train infrastructure and facilities granted to a consortium of state-owned enterprises or joint ventures, wholly applicable and/or can be transferred to the joint venture.

Funding

Regarding of funding for the implementation of infrastructure and facilities of Jakarta – Bandung fast train, according to Presidential Regulation No. 107 of 2015, may consist of: a. the issuance of bonds by a consortium of state-owned enterprises or a joint venture company; b. loan of consortium of state-owned enterprises or joint ventures of financial institutions, including foreign financial institutions or multilateral; and / or c. Other funding in accordance with the legislation.

Procurement of goods and/or services within the framework of the implementation of the assignment, the implementation of infrastructure and facilities for the Jakarta – Bandung fast train should maximize a local content.

“In terms of the assignment referred to the cooperation with partners from abroad, then the partners have to transfer knowledge and technology to a consortium of state-owned enterprises or joint ventures,” reads Article 6 paragraph (2) of the regulation.

Presidential Regulation comes into force on the date of promulgation, ie on October 6, 2015, as enacted by the Minister of Law and Human Rights Yasonna H. Laoly. (Pusdatin/ES)