CHINA Asks for APBN “As Debt Collateral” for Jakarta-Bandung Fast Train, This is Luhut’s answer !!!

JAKARTA — The Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan said that China asked the state budget to become guarantor for the fast train debt. The government still refuses the request. “The Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Panjaitan said China would ask the State Revenue and Expenditure Budget (APBN) to become the guarantor for the Jakarta-Bandung Fast Train (KCJB) project debt. However, Luhut did not accept China’s demands. He recommended the guarantee is carried out through PT Penjaminan Infrastruktur Indonesia (Persero) alias PII. “Indeed there are still psychological problems, yes, so they (China) want it from the state budget. But we explain the procedure will be long. We are pushing through PT PII because this is the structure that the Indonesian government has just created since 2018,” said Luhut in a press conference at the Coordinating Ministry for Maritime Affairs, Central Jakarta, Monday (10 April 2023). , yes he will experience a long (procedure). They have been reminded and they are thinking about it,” he added. On the other hand, Luhut said that China only wanted to reduce the interest on the fast train debt from 4 percent to a level of 3.4 percent. Luhut said the interest on the debt was still too high and the government wanted interest on the debt. it can go down to 2 percent. Even though the interest is still quite high, Luhut said the government is not a problem. According to him, the government will still pay it because the interest is already better than the interest on other foreign loans. Also. So 3.4 percent for example up to that point, we are doing ok even though it’s not very okay,” Luhut argued. Confirmed separately, PT PII Main Director Wahid Sutopo said he had not received a mandate from Luhut regarding the guarantee process for the KCJB project. Although, he emphasized PT PII is here to carry out government guarantees in infrastructure projects “Regarding the KCJB project, until now we have not officially received any