KCIC's Rp 5 Trillion Debt to WIKA: High-Speed Rail Project Cost Overrun

Ongoing Arbitration Process

PT Kereta Cepat Indonesia China (KCIC) has outstanding debts amounting to Rp 5.01 trillion to PT Wijaya Karya (Persero) Tbk (WIKA) for the Jakarta-Bandung high-speed rail project. This significant amount is recorded as Receivables in Construction Settlement (PDPK) in WIKA's financial reports. The debt stems from cost overruns that exceeded the initial project budget.

Current Status of Claims

WIKA's Director, Agung Budi Waskito, stated that the company is currently undergoing the process of claiming the receivables through third-party arbitration in Singapore. The claim is part of WIKA's efforts to resolve the outstanding payment related to the project's cost overrun.

Implications for Project Completion

This development highlights the financial complexities surrounding major infrastructure projects like the Jakarta-Bandung high-speed rail. The resolution of this debt through arbitration will be crucial for both KCIC and WIKA, potentially impacting their financial standings and future collaborations.