State-owned construction company PT Wijaya Karya (WIKA) is planning to finish the land acquisition process for the Jakarta-Bandung high speed railway project in April so that construction of its transportation infrastructure can reach the targeted 60 percent by the end of 2019.
WIKA corporate secretary Puspita Anggraini said that, as of March 15, 92 percent of land had been acquired.
“We set a target to fully complete the land acquisition process in April 2019,” he said as quoted by kontan.co.id recently, adding that, after all land is acquired, the company would focus on the construction of 142.3 kilometers of railway tracks.
The high-speed railway will have four stations – Halim Station in Jakarta and Karawang, Walini and Tegalluar stations in West Java.
The total investment for the project is US$6.07 billion, 75 percent of which is a loan from the China Development Bank (CDB), while 25 percent comes in the form of equity from Kereta Cepat Indonesia China (KCIC) shareholders PSBI and Beijing Yawan HSR Co., Ltd.
He said CDB had disbursed $1.1 billion so far and future disbursements would be based on construction progress.
Securities firm Phintraco Sekuritas analyst Valdy Kurniawan said the $1.1 billion loan indicated that there was progress in the project, the groundbreaking ceremony of which was led by President Joko “Jokowi” Widodo in January 2016.
He said he believed the bank would disburse more loans this year to finance construction for the project, which is expected to be completed in 2021. (bbn)