Project ID: 61320

CDB provides $2.3805 billion loan tranche for the Jakarta-Bandung High Speed Rail Project (Linked to Project ID#61321 and #61322)

Commitment amount

$ 2.38 billion

Constant 2017 USD

Description

[...] The Jakarta-Bandung HSR Project, which was originally scheduled for completion in May 2019, has encountered a number of different problems during implementation. First, Indonesia Law No. 32/2009 regarding Environment Management and Control requires an environmental impact assessment (EIA) be developed over at least one year (and include analysis for both dry and rainy seasons) for a project of the Jakarta-Bandung HSR’s scale. However, the EIA for the project was completed in less than 6 months, and environmental NGOs claim that it contains inaccurate and flawed data analysis regarding the project’s actual environmental impacts.

Second, the project reportedly violated Government Regulation No. 27/2012 regarding environmental permits, which requires public participation in the making of the EIA document. Environmental NGOs claim that, due to a lack of public participation in the EIA process, the project has serious design defects, including a planned route through numerous geological faults, which has led to delays, cost overruns, and local opposition.

Third, although KCIC exclusively appointed PT Pilar Sinergi, a state-owned enterprise to deal with land acquisition issues, the process has not proceeded as smoothly as the Indonesian government had hoped. In July 2018, three lawsuits resulted in legal approval from the courts to proceed with claims seeking compensation for their properties affected by the project. [...]