MainContractor(s): High-Speed Railway Contractor Consortium (HSRCC), a consortium between Indonesian company PT Wijaya Karya (30%) and several Chinese companies (70%), including China Railway International Co. Ltd, CREC, Sinohydro Corporation Limited, China Railway Design Corporation (another subsidiary of CR), CRRC Sifang Co. Ltd (a
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content. Investor Daily - Dukungan untuk Wika di proyek kereta cepat 27 October 2021 By Parluhutan Situmorang The government’s decision to finance Jakarta-Bandung high-speed railway is positively supporting PT Wijaya Karya Tbk WIKA. The company is also supported by the domestic construction segment that is starting to recover. Wika’s decision to delay the IPO of their two subsidiaries, PT Wika Realty and PT Wika Rekayasa Konstruksi, to 2023 is reckoned to be the right decision by analysts. Moreover, the corporate action aims to secure funds of around Rp3 trillion to Rp4 trillion. BRI Danareksa Sekuritas analyst, Maria Renata, revealed that the government had issued Presidential Regulation Number 93 of 2021, which allowed the government to fund Jakarta-Bandung high-speed railway project. “The involvement of the government in financing the project can impact the shareholding of consortium members, including Wika’s shareholding that can also be diluted after the appointment of PT KAI as the consortium leader,” she wrote in her research. According to Maria, the government has also assigned Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, to directly supervise the high-speed railway project. “With the appointment and the funding, the construction of the high-speed railway is expected to be progress more quickly, which will positively impact Wika,” she explained. Besides that, Wika will secure a contract worth trillion to construct the project, which is 30% of the total contract. The rest will be divided among 6 to 7 contractors from China. Wika has invested trillion as equity in the project and provided a shareholder loan of trillion. The project construction progress has reached and the construction progress carried out by WIka has reached 82%. The project is set to be finished by the middle of 2022 and to operate by the end of 2022. “KCIC is currently officially calculating the additional cost and [devising] a way to finance the project. Until now, around 75% of the project is financed from loans, which are predicted to increase in line with the investment value increase,” Maria revealed. Those factors are encouraging BRI Danareksa Sekuritas to maintain their buy recommendation for WIKA shares with a target price of Rp1,400. Positive sentiment of the company’s shares came from the government support in the construction Jakarta-Bandung High-Speed Railway project and the potential of less company shares in the project. Moreover, Wika’s net profit this year is predicted to increase to Rp274 billion from Rp186 billion last year. The company’s revenue is also predicted to grow from trillion to trillion. Meanwhile, their profit per share is predicted to increase from billion to billion. Meanwhile, Samuel Sekuritas Indonesia analyst, Andreas Kristo Saragih, revealed that Wika’s financial performance would improve in the next three years. This expectation is supported by the double-digit growth of new contracts and the gradual increase of the burn rate. “We also have positive perspective towards Wika thanks to the government’s involvement in resolving the cost overrun issue in the Jakarta-Bandung high-speed railway project, the loss at the early stage of the high-speed railway’s operation, and the project owner’s decision to delay spending,” Andreas wrote in his research. Regarding new contracts, Wika’s compound annual growth rate CAGR can reach until 2023. The increase will be supported by new contracts from SOEs State-owned Enterprises such as Pertamina, Pelindo, PLN and Angkasa Pura that are once again allocating their capital expenditure in activities that are Wika’s specialties. “We also estimate that several new contracts from 2022 to 2023 will come from infrastructure projects in the Capital city,” he explained. Wika will also be supported by their capability to secure additional contracts worth Rp15 trillion in the fourth quarter of 2021. That amount considers the value of tenders that the company are participating in that reaches Rp24 trillion and the estimated value of tenders that will be released by the government and SOEs in the fourth quarter of 2021 that reaches around Rp15 trillion to Rp20 trillion. Several project tenders that Wika are participating in are toll road, smelter, building, dam, and irrigation construction projects. Samuel Sekuritas recommends buying WIKA shares with a target price of Rp1,440. That target price reflects an estimated PE ratio of in 2022. That target price also shows slow financial performance improvement in the next few years until it matches the realisation in the last few years.
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This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content. Investor Daily - KCIC Pastikan Proyek KA Cepat Jadi Ajang Transfer Teknologi 19 October 2021 By Thresa Sandra Desfika Jakarta – PT Kereta Cepat Indonesia China KCIC ensures that the construction of Jakarta-Bandung High-Speed Railway will become an event for knowledge and technology transfer among human resources in the domestic construction sector. “Since the start of the construction, this high-speed railway project has brought over many new technology and methods in the construction sector. This will automatically provide experiences and lessons for future construction planning and implementation in Indonesia,” PT KCIC President Director, Dwiyana Slamet Riyadi, said in his official statement in Jakarta on Monday 18/10. He explained that the technology and knowledge transfer from China to Indonesia through the Jakarta-Bandung High-Speed Railway project included the implementation of the cast in situ method for full-span girders. According to Dwiyana, even though the cast in situ method is a method that has been previously implemented in Indonesia, but the cast in situ method for the full-span girders in this land infrastructure project will be implemented for the first time in Indonesia. Dwiyana also ensured that the cast in situ method for the full-span girders spanning 32 metres was carried out with high quality standard that meets the conditions for high-speed railway structure design. “Cast in situ is an on-site concreting method. The cast in situ method is frequently implemented in Indonesia, but usually it is not implemented all at once. For example, the concreting is usually conducted in stages or segment by segment [not all at once]. In this high-speed railway project, the concreting is implemented all at once for the 32-metre girders. So, this is what separates it from the existing cast in situ method,” he said. In practice, Wijaya Karya WIKA as a local contractor in the Jakarta-Bandung High-Speed Railway consortium has developed the project using their experience from previous projects, and they also absorbed construction technologies and methods from Casting Yard 1 DK28 Sinohydro. With experience and knowledge from the Chinese contractor, Wijaya Karya is carrying out the development using the cast in situ method to cast the concrete all at once. Wijaya is responsible to make 137 full-span box girders for Jakarta-Bandung High-Speed Railway. Besides that, according to him, knowledge transfer also occurred in the girder erection process in the casting yard where the precast box girders are made. Even though technology transfer does not occur directly, but, through local workforce involvement, innovative high-speed railway planning and construction can be learned. “Innovative work method in the girder erection process of the high-speed railway project will be an example of how public infrastructure construction at busy areas can be carried out without hindering public activities around the area,” Dwiyana said. Next, technology transfer also occurs in the construction of slab tracks, which are plates for the railway tracks that distribute weight from the top. The slab tracks used in this high-speed railway project are different from slab tracks used by other trains. In this project, the slab tracks do not need ballast stones along the railway tracks and require minimal maintenance. Similar to the cast in situ method, the slab tracks are constructed by involving Indonesian human resources from WIKA who have received direction and training from human resources from China from PT Sinohydro. The slab track construction is fully conducted by human resources from WIKA, where the process is conducted at the Slab Track Prefabrication Workshop in Dawuan, Purwakarta. WIKA Beton will produce 13,315 slab track units in one year from the middle of 2021 to the middle 2022. Dwiyana believes that technology and knowledge transfer during the construction of the high-speed railway can improve the capability and the experience of human resources in Indonesia in the construction sector. For the high-speed railway construction, WIKA is establishing a technology transfer team from Sinohydro, especially for tunnel and box girder construction, which will be directly involved in tunnel 1 and casting yard 1 construction. SOPs and regulations Regarding the tunnel construction, China Railway Group Limited CREC will create a guideline for the tunnel construction as part of the technology transfer to Indonesia. Simultaneously, regarding standard operational procedures SOPs and regulations regarding the high-speed railway, High-Speed Railway Contractor Consortium HSRCC and China Railway are finalising the documents that will be handed over to KCIC in October 2021. He stated that 625 SOPs, regulations, and training materials would be handed over to be used as references to create SOPs, transportation minister regulations, as well as training materials for high-speed railway workforce. “Workers from China are continuously sharing their experience and knowledge from this high-speed railway to various parties, such as professional associations and universities. Moreover, members of KAI, WIKA, and the Railway Directorate General also have opportunities to participate in field trainings at several high-speed railway project locations,” Dwiyana said. Meanwhile, the loan from China through China Development Bank CDB for Jakarta-Bandung High-Speed Railway is 58% disbursed, or US$ billion. Moreover, the total loan from China Development Bank reaches US$ billion. “The total loan from China contributes to 75% of the funding for Jakarta-Bandung High-Speed Railway,” PT Kereta Cepat Indonesia China KCIC Corporate Secretary, Mirza Soraya, said to Investor Daily recently. Mirza explained that, for the current high-speed railway project, his company was currently focusing on completing tunnel construction three out of ten tunnels penetrated, elevated tracks, and subgrade preparation. On30 July 2019, IKM has been successfully awarded by HSRCC (HighSpeed Railway Contractor Consortium) for the most remarkable commercial project located in Bandung area : Jakarta-Bandung High-Speed Rail. IKM's contractual scope includes the whole EPC works for HSRCC headquarter base camp, steel structure workshop, landscape etc.
A high-speed train carries out a test run on the Jakarta-Bandung line in Tegalluar, Indonesia’s West Java province, last month. The railway had planned to begin a free trial with passengers in mid-August, but this could now be pushed back. Photo Antara Foto/Raisan Al Farisi via Reuters The 142km Jakarta-Bandung line, a high-profile belt and road project, is already US$ billion over its initial budget and four years behind schedule Indonesia’s transport ministry is now calling for the proposed commercial launch of the rail line to be pushed back from August this year to January Published 303pm, 7 Jun, 2023 Updated 312pm, 7 Jun, 2023 A high-speed train carries out a test run on the Jakarta-Bandung line in Tegalluar, Indonesia’s West Java province, last month. The railway had planned to begin a free trial with passengers in mid-August, but this could now be pushed back. Photo Antara Foto/Raisan Al Farisi via Reuters
SiemensMobility and its consortium partners Orascom Construction and The Arab Contractors have signed a contract with the Egyptian National Authority for Tunnels (NAT), a governmental authority under the jurisdiction of the Ministry of Transport of Egypt, to create the sixth largest high-speed rail system in the world.
Skip Nav Destination Article navigation PROCEEDINGS OF THE 3RD INTERNATIONAL CONFERENCE ON CONSTRUCTION AND BUILDING ENGINEERING ICONBUILD 2017 Smart Construction Towards Global Challenges14–17 August 2017Palembang, Indonesia Previous Article Next Article Research Article November 14 2017 Aleksander Purba; 1Civil Engineering Department, Faculty of Engineering, Lampung University, Jalan Sumantri Brojonegoro No 1 Gedung Meneng, Bandar Lampung 35145, Indonesia Search for other works by this author on Fumihiko Nakamura; 2Graduate School of Urban Innovation, Yokohama National University, 79-1 Tokiwadai, Hodogaya-ku, Yokohama 240-8501, Japan Search for other works by this author on Chatarina Niken DWSBU; 3Civil Engineering Department, Faculty of Engineering, Lampung University, Jalan Sumantri Brojonegoro No 1 Gedung Meneng, Bandar Lampung 35145, Indonesia Search for other works by this author on Muhammad Jafri; 4Civil Engineering Department, Faculty of Engineering, Lampung University, Jalan Sumantri Brojonegoro No 1 Gedung Meneng, Bandar Lampung 35145, Indonesia Search for other works by this author on Priyo Pratomo 5Civil Engineering Department, Faculty of Engineering, Lampung University, Jalan Sumantri Brojonegoro No 1 Gedung Meneng, Bandar Lampung 35145, Indonesia Search for other works by this author on AIP Conference Proceedings 1903, 060004 2017 Split-Screen Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Open the PDF for in another window Tools Icon Tools Search Site High-Speed Railways HSR is currently regarded as one of the most significant technological breakthroughs in passenger transportation developed in the second half of the 20th century. At the beginning of 2008, there were about 10,000 kilometers of new high-speed lines in operation in Asia and Europe regions to provide high-speed services to passengers willing to pay for lower travel time and quality improvement in rail transport. And since 2010, HSR itself has received a great deal of attention in Indonesia. Some transportation analysts contend that Indonesia, particularly Java and Sumatera islands need a high-speed rail network to be economically competitive with countries in Asia and Europe. On April 2016, Indonesia-China consortium Kereta Cepat Indonesia China KCIC signed an engineering, procurement, and construction contract to build the HSR with a consortium of seven companies called the High-Speed Railway Contractor Consortium. The HSR is expected to debut by May 2019, offering a 45-minute trip covering a roughly 150 km route. However, building, maintaining and operating HSR line is expensive; it involves a significant amount of sunk costs and may substantially compromise both the transport policy of a country and the development of its transport sector for decades. The main objective of this paper is to discuss some characteristics of the HSR services from an economic viewpoint, while simultaneously developing an empirical framework that should help us to understand, in more detail, the factors determining the success of the HSR as transport alternative based on current experiences of selected Asian and European countries. REFERENCES de Rus, Economic evaluation of the high-speed rail, University Carlos III de Madrid, pp. 2–3, 2012. Campos, G. de Rus and I. Barron, Economic analysis of high speed rail in Europe Fundacion BBVA, 2009. Levinson, Mathieu, D. Gillen and A. Kanafani, The annals of regional science, 31, pp. 212–213, 1997. de Rus and G. Nombela, Journal of transport economy and policy, 411, pp. 3–23 2007. de Rus and Working paper 590, Institute for Transportation Studies, University of Leeds, 2007. A. Nash, Enhancing the cost benefit analysis of high-speed rail Paper given at the symposium on the environmental and other co-benefits of developing a high-speed rail network in Berkeley California, 2010. Hirota, Japan the Shinkansen effects, Transports, 310, pp. 678–679, 1985. Nakamura and T. Ueda, Proceeding of Fifth World Conference on Transport Research, 3, Yokohama, Japan, 1989 pp. 95– G. Cho and J. K. Chung, Korea Research Institute for Human Settlements, Special Report 12, pp. 7–13, 2008. Korea Transport Institute KOTI, Modularization of Korea’s Development Experience Construction of high-speed rail in Korea Ministry of Strategy and Finance, Republic of Korea, 2012. Shima, Japan Railway and Transport Review, pp. 40-46, 2007. Barrow, International Railway Journal 2015. Ollivier, J. Sondhi and N. Zhou, China Transport Topics No. 9, pp. 1–2, 2014. Lou and A. Gui, Morgan Stanley Research, pp. 4-10, 2011. Commission EU, High-Speed Europe A sustainable link between citizens Report by Directorate-General for Mobility and Transport, Luxembourg, 2010. presentation at TEMPO conference 18-19 May Oslo, 2010. Vickerman, The Annals of Regional Science 31, pp. 21–38, 1997. Leheis, High-Speed train planning in France, lessons from Mediterranean TGV-line World Academy of Science, Engineering and Technology 20, 2009. International high-speed railway system summary, Spain, pp. 1–2, 2010. high-speed railway system summary, Germany, pp. 1-4, 2010. Galenson and Associates TGA, High Speed Rail Passenger Services World Experience and Applications, 2011. Patuelli, International research society for public management conference, University of Birmingham, pp. 6-8, 2015. dello Stato Italiane, Piano industriale 2014-2017. Italian Railways, Business plan 2014-2017, 2013. p. Commission, EU transport in figures Statistical pocketbook, 2014. This content is only available via PDF. © 2017 Authors.2017Authors
HighSpeed Railway Contractor Consortium adalah konsorsium yang dibentuk untuk melaksanakan pembangunan proyek Kereta Cepat Jakarta-Bandung. Konsorsium ini terdiri atas 7 (Tujuh) perusahaan yang memiliki keahlian di bidangnya. Beberapa perusahaan bertugas sebagai kontraktor dari konstruksi sipil, sedangkan lainnya bertugas sebagai
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content. Investor Daily - Pemerintah Suntikkan Rp4,3 Triliun ke Proyek KA Cepat Jakarta-Bandung 13 October 2021 By Thresa Desfika, Triyan Pangastuti, Muawwan Daelami, and Arnoldus Kristianus Jakarta – The government is investing trillion in PT Kereta Api Indonesia KAI to cover the lack of funds for the construction of Jakarta-Bandung High-Speed Railway that increased by around Rp27 trillion or 31% from the original cost. The investment is provided in the form of an additional state capital participation PMN for PT KAI, one of the four SOEs State-owned Enterprises in PT Pilar Sinergi BUMN Indonesia. The construction of the high-speed railway that spans 142 km is predicted to be finished at the end of 2022, which is 12 months later from the original schedule. Other SOEs in PT Pilar SInergi BUMN Indonesia PSBI are PT Wijaya Karya Persero Tbk, PT Jasa Marga Persero Tbk, and PT Perkebunan Nusantara PTPN VIII. To work on the high-speed railway, PSBI is cooperating with a Chinese company by establishing the KCIC consortium. PSBI’s ownership portion in KCIC reaches 60%, while the Chinese company owns the remaining 40%. When the consortium PT Kereta Cepat Indonesia China KCIC was established, KCIC was obligated to provide a capital of around trillion. This is 25% of the estimated cost of Jakarta-Bandung High-Speed Railway worth US$ billion or trillion in total. PT Pilar Sinergi BUMN Indonesia that owns 60% of KCIC shares must provide a capital of around trillion, while the Chinese consortium Beijing Yawan that owns 40% of the shares must provide trillion. With 25% provided from their own capital, the remaining 75% or around trillion US$ billion will be provided by a loan from China Development Bank. PT Kereta Api Indonesia Persero or KAI President Director, Didiek Hartantyo, said that, as a follow-up action from Presidential Regulation Number 93/2021 that appointed KAI as the new leader of PSBI, the PMN for KAI was prepared to provide the base equity capital for Jakarta-Bandung High-Speed Railway. Previously, PSBI’s leader was PT Wijaya Karya Pesrero Tbk as they owned 38% of the shares, while KAI owned 25%, PT Jasa Marga Persero owned 25%, and PT Perkebunan Nusantara PTPN VIII owned 12%. The trillion PMN will be used to cover the lack of capital from the SOE consortium, Rp240 billion from WIKA, Rp440 billion from KAI, Rp540 billion from Jasa Marga, and trillion from PTPN. “So, the trillion PMN will be used to provide the base equity capital,” Didiek said when he was contacted by Investor Daily on Monday 11/10. He explained that, to work on the high-speed railway project, PSBI established a joint venture with a Chinese consortium, Beijing Yawan, called PT Kereta Cepat Indonesia China. The fund required for the high-speed railway spanning 142 km reaches US$ billion. Special Staff for SOE Minister, Arya Sinulingga, explained that, previously, the funding would be provided from the state budget as the four SOEs involved in the project was impacted by the Covid-19 pandemic, which hindered the capability of the state-owned companies in financing the cooperation project between Indonesia and China. “This is what forces the government to provide funding so that the high-speed railway can be excellently constructed,” Arya said to an interviewer on Sunday 10/10. In article 4 paragraph 2 of Presidential Regulation Number 93 of 2021, it is mentioned that other funding can be provided from the state budget to maintain the progress of a national strategic project by considering the fiscal capacity and sustainability. Then, paragraph 3 of article 4 states that financing can be provided from the state budget in the form of state capital participation for the SOE consortium leader and/or guarantee for the SOE consortium leader. “Presidential Regulation Number 93/2021 appoints PT KAI as the consortium leader, while the previous leader was PT Wijaya Karya Tbk. So, this is nothing. The issue is only that [the SOEs are impacted by the pandemic]. Wherever you go, in almost all countries, the government is involved in their high-speed railway project. Almost all countries are like that,” Arya said. He added that the construction progress of Jakarta-Bandung High-Speed Railway project had reached 80%. With funding from the government later, Arya continued that the project completion was expected to be accelerated. Cost overrun On a separate occasion, SOE Deputy Minister, Kartika Wirjoatmodj, revealed that, previously, there were several issues regarding Jakarta-Bandung High-Speed Railway. First, regarding the initial capital. According to him, PT PTPN VIII’s plan to provide additional capital in the form of lands in Walini in West Java was rejected by the consortium. “PTPN VIII was planning to increase the capital in the form of lands in Walini. In its development, the consortium KCIC does not receive contribution in the form of lands, only cash. PTPN VIII does not have the capability to provide cash of that amount,” Kartika Warjoatmodjo, familiarly called Tiko, said. Besides that, he continued that Jasa Marga was also planning to provide capital in the form of a right of way ROW on their toll roads. However, a ROW turns out can only be provided by the State Asset Directorate General of the Finance Ministry. “This misunderstanding on ROW is due to a lack of legal study at the early stage. Furthermore, capital from WIKA and KAI are also still lacking,” he said. To cover the lack of capital, Tiko continued that KAI was proposed to receive a state capital participation of trillion this year. The fund will be included in the 2021 additional PMN. “We expect that the culmination [of the lack of the capital from Jasa Marga and PTPN VIII] and the lack of the additional capital from WIKA and KAI can be provided by the PMN. The PMN through KAI that will be used to smooth out [the construction of] Jakarta-Bandung High-Speed Railway is required as the companies are under pressure from the Covid-19 pandemic,” Tiko stated. Furthermore, Tiko said that the second issue regarding the Jakarta-Bandung High-Speed Railway project was the cost overrun. In Tiko’s presentation during the working meeting with House of Representatives DPR Commission VI, it was shown that the cost overrun of Jakarta-Bandung High-Speed Railway was estimated to reach around US$ billion to US$ billion. “We are currently having a discussion on the cost overrun. I think that it will not be provided in this year’s [PMN], but next year’s,” Tiko revealed previously. Then, he revealed that the third issue was the cash deficit. According to Tiko, discussions with China are still held to handle the negative operational cash flow, which will occur at the start of Jakarta-Bandung High-Speed Railway’s operation. “We are thinking of a scheme with financing from a bank, which is CDB China Development Bank,” Tiko said. Special Staff for SOE Minister, Arya Sinulingga, previously explained that another problem was the change of Jakarta-Bandung High-Speed Railway’s route to Jakarta-Padalarang-Bandung. This is set in Presidential Regulation Number 93 of 2021. Previously, the route was set to be Jakarta-Walini-Bandung. “Price changes can occur and are normal in a project. Moreover, in a project with a long route such as the Jakarta-Bandung High-Speed Railway project that spans 142 km. During construction, the design can change due to geological and geographical conditions that change from the original condition. Do not say that the original plan is wrong. Then, the price of lands can increase in time, which occurs during almost every construction,” he added.
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