President Prabowo Subianto has established a dedicated committee to oversee the critical Jakarta-Bandung High-Speed Rail project. This newly formed committee is tasked with navigating the complexities surrounding the project’s financial aspects, specifically addressing potential cost overruns and defining the extent of government support required.
The formation of this strategic committee is formalized under Presidential Regulation Number 29 Year 2026, which amends Presidential Regulation Number 107 Year 2015 concerning the acceleration of the Jakarta-Bandung High-Speed Rail infrastructure and facilities. Its mandate is twofold, with the primary objective being to formulate and endorse necessary measures to mitigate the financial obligations of the joint venture company, especially in scenarios involving an increase or alteration in project costs, commonly known as cost overruns.
Crucially, the committee’s initial responsibility encompasses strategizing adjustments to the joint venture company’s equity ownership and revising the terms and quantum of loans extended to the consortium. This meticulous approach aims to ensure the financial viability and long-term sustainability of the high-speed rail initiative, mitigating the impact of unforeseen expenditures.
Furthermore, the committee is charged with determining the precise forms of government assistance that can be extended to alleviate the joint venture’s financial burdens arising from these cost overruns. This includes evaluating potential State Capital Injection (PMN) for the consortium of state-owned enterprises involved in the project. Additionally, the committee will explore providing government guarantees for the obligations of the leading consortium of state-owned enterprises, if necessary, to secure the required capital for the Jakarta-Bandung High-Speed Rail project.
The detailed execution plans for these two pivotal tasks, along with their associated sub-tasks, will be meticulously elaborated through a subsequent Ministerial Regulation. As stipulated in Article 3A Paragraph 4 of the aforementioned presidential regulation, “Further provisions regarding the Committee as referred to in paragraph (1) shall be regulated by the Coordinating Minister for Infrastructure and Regional Development.”
AHY Chairs Jakarta-Bandung High-Speed Rail Committee
Providing strategic leadership to this vital committee is Agus Harimurti Yudhoyono (AHY), the Coordinating Minister for Infrastructure and Regional Development. His appointment underscores the government’s commitment to robust oversight and efficient project management.
Assisting AHY as the Vice Chairman will be Airlangga Hartarto, the Coordinating Minister for Economic Affairs, ensuring a comprehensive economic perspective. The committee further boasts a diverse and experienced membership, including the Minister of Foreign Affairs, the Minister of Finance, the Minister of Transportation, the Minister of Investment and Downstreaming/Head of the Investment Coordinating Board, the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency, the Head of the Agency for State-Owned Enterprise Regulation, and the Head of the Executive Body of the Anagata Nusantara Investment Management Agency. This broad representation ensures that all relevant governmental and financial aspects of the high-speed rail project are thoroughly addressed.
Summary
President Prabowo Subianto has established a special committee to oversee the critical Jakarta-Bandung High-Speed Rail project. Formalized under Presidential Regulation Number 29 Year 2026, this committee is tasked with managing the project’s financial complexities, particularly addressing potential cost overruns. Its primary objective is to formulate measures to mitigate the joint venture company’s financial obligations and determine the necessary forms of government support, such as State Capital Injection (PMN) or government guarantees.
This crucial committee is chaired by Agus Harimurti Yudhoyono (AHY), the Coordinating Minister for Infrastructure and Regional Development. Airlangga Hartarto, the Coordinating Minister for Economic Affairs, serves as Vice Chairman. The committee’s membership includes various relevant ministers and heads of agencies, ensuring comprehensive handling of all aspects related to the high-speed rail project.