China-made bullet train in Indonesia overruns budget by up to US$2 billion
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- เผยแพร่เมื่อ 7 ก.ย. 2024
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A China-funded high-speed rail project in Indonesia is on track to launch in 2023, despite being over-budget by up to US$2 billion, according to the construction consortium PT Kereta Cepat Indonesia China (KCIC) on October 13, 2022. China, however, estimated the budget overrun to be less than US$1 billion, a discrepancy that KCIC has admitted needs resolving.
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Indonesia’s China-built rail link chugs along despite overshooting budget sc.mp/19s2
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Let me explain the reason. The overrun was caused by the land acquisition budget increase. So the deal between the 2 countries was only for the infrastructures and mechanicals of the project. For the lands, that was totally up for Indonesia to provide. In the middle of the progress, Indonesia asked China to increase the loan to fund the land acquisition increase, but China declined. Later Indonesia funded the land acquisition with their own budget.
You didn’t explain the reason land acquisition was not included in the initial estimate. Doesn’t the CCP know land costs money?
@@geinikan1kan do you know how insane it would sound to nationalists if land acquisition is also handled by the ccp? "Yeah China or one of its constituent is also buying up your land because the Indonesian government cannot afford it", there's billions of ways to criticize Chinese projects and China at large but this isn't one of it.
Let me explain how irresponsible it is to not include land acquisition in an estimate. So the CCP has never heard of land acquisition. Very funny. 给你五毛. Every project carried out by a Chinese company is in the final analysis overseen by the CCP.
@@geinikan1kan China-Indonesia deal was only about building the bullet train, u think Indonesia a sovereign country will let outsiders to plan/deal with land acquisition? Right, jealous US lapdog is whining for its master huh....
@@desgner_droz8716 You didn't mention how the impact from covid pandemic to this project too. Don't forget which country is responsible for spreading the virus first.
This is very common in big projects.
Also there is no mention in the video that China agreed to give them the technology of the bullet train so Indonesia could build their own and also sell it to others.
So it´s a big win for Indonesia.
This channel won't say that because they're always against China.
do you think China really would give the technology to Indonesia? don't be a fool.
China promised they won't ask for Indonesia government responsibility if there are some issues with the project, but then they still ask Indonesia to pay the cost that is now overrun by 40% (and still increasing)
and don't forget there are many illegals Chinese workers who works in the mines in Indonesia. they are hiding themselves whenever there is an inspection.
Not a fan of CCP but that is a sweet deal.
yeah the japanese doesn't want to give their technology. so if the train have malfunction or broke, we have to call japanese technician all the time
Cue the sinister music....
Fortunately, Indonesia will finally have its own high speed train soon and I'm very happy 😊 to know about it. Unfortunately, budget overrun wasn't to be expected, but as a user told that it was due to land acquisition, I can understand such issues. Love and respect from India 🇮🇳, we too are building a high-speed rail from Mumbai to Ahmedabad, and hoping to operationalize by 2025. And congratulation 🇮🇩 ❤️ 🇮🇳 ,
Happy for those who has money & jobs, while others struggling to eat
@@imams9017 what do you mean ?
@@imams9017 apa sih lu, kayak sok yang paling menderita aja
@@imams9017 tuh lu masih maen youtube make duitlu masa tuk makan aja gak bisa, kalo gak suka sama Presiden kita mending lu gantiin dia aja dah
@@imams9017 duit berharga karena ada orang miskin
I think it's to be expected. If you know the history of Japan's first bullet train, that too ran wayyy over budget.
But it was happen in japan super growth economy. This overrun budget happen in worst year because of pandemic, inflation, chip crisis, wars, energy crisis, so on 😡. We get hurt by china
@@yogadarmawan3051 this bad timing is probably the reason for the overrun, which is in no one's control and interest.
@@yogadarmawan3051You said that overrun budget happen in worst year because of pandemic, inflation, chip crisis, wars, energy crisis, so on, and you blamed it on China. Did you forget your drugs today?
nah... you must always include contigency cost, instead of tight budgeting for tender and eventually become overbudget like chinese did.
😅 Compare to Japan and USA project , this is NOT even news ...
Please report on our ~20 years California train project🤣
In my opinion budget overrun on high speed railway, especially for first time build, were something cannot be avoided. When Japan build Tokaido Shinkansen, the first Shinkansen network, the budget were ballooned four times even enough to force CEO and Technical Chief of Japanese National Railway at that time to resign, yet Shinkansen was hugely successful albeit the price is the huge debt of JNR leading to privatisation into JR Group.
ah yes the "first" wave of overbudget, we're still not sure how many stage's left are there. could be worse..
Japan is a busier country and needed the high speed rail first
That's incorrect. Tokaido Shinkansen, which were planned during wartime and completed in the 1960s wasn't the reason for privatization. It's still a enormously profitable line. Other Shinkansen lines that were planned and built afterwards, in addition to unprofitable conventional lines was the reason for eventual privatization in the late 1980s.
Already explained, it's Indonesia land acquisition costs, not the hardware and construction cost.
The budget overrun to build will be a separate cost to the cost to maintain which is covered by the ticket sales. If the ticket sales aren’t there the cost to maintain isn’t covered resulting in additional debt.
China’s HSR is now $1 Trillion in debt because of both costs. Out of the 20+ HSR lines China now has, only the 3 original HSR lines that were supposed to be the only ones built make profit. The other liens were established due to money laundering, political posturing, and mafia (concrete).
I don’t know how long it will take Indonesia to break even on this HSR. It took Taiwan nearly 20 years and a Bankruptcy before they were able to break even on their Shinkansen line.
Indonesia HSR : " Budget overruns "
US California HSR : "🤭🤭🤭🤭🤫🤫🤫🤫"
@Dark Cloud Ah, how I love California. Looking forward to the next tax increase.
Chinese company : there is $1B overrun, unfortunately
Indonesian Gov: No, it is $2B. $1B for the train, and another $1B for...... "administrative overheads and another necessary expenses"
Exactly 😂
I think this is more of limitation and outside event than administrative purposes. Like yeah it might, but might only contribute to 1-2% of the total budget
Firstly, every country's highspeed rail project would always projected to overbudget. Building a new type of tunnel costs for the first time costs like tons than second or third. So with the bridges, railways, etc.
Other thing is, Jokowi made a risky decision to make highspeed rail at the highland of Java instead of Jakarta - Semarang. It will contribute to the engineering decision on the track.
But once Indonesia can get through this hurdle, locals are now more experienced to make highspeed railway. These in return, can reduce the cost of next highspeed railway project like Bandung-Yogyakarta.
And there's covid, inflation, people being mad, etc. But hey, at least it's not like California which overbudget by $30 billion.
Meanwhile in Japanese company on HSR project at India : Stonks
u mean another 1 billion for corruption?
"administrative overheads and another necessary expenses"
It's reasonable. Indonesians like coffee breaks, traveling, and other leisure as part of the expenditure project.
Meanwhile Californian high-speed railway overruns more than a whopping 30 billion.
What the point of bringing that up here.
So Americans built it and not a foreign debt trap bully.
@@blankpaper2471 to justify that 2B is not a big deal...
@@blankpaper2471 saying that 2 B for a high speed rail isnt really that bad
@@joeliew5515 America is a wayyyy different country.
I guess overrun is normal. In every big project 10-25% budget overrun can happen due to delayed in materials, increase in man hours, and so on. They should have allocated such budget when that happens. Even as small as house renovation project, such overrun is expected.
Yeah 25% is nothing. I'm working on a HV DC converter station where our budget was $700M and now we're looking $1.5B so they're frantically looking to reduce the scope. This is mostly due to inflation and increases in material due to supply chain shortages
i always add an extra 10% on top of the line items to avoid being labelled incompetent 😅 so far my trick is to delay expenditure if adjusted roi is lesser than 20%.
Bruhh its hard when pandemic happen, inflation, energy crisis, and wars
😅 Compare to Japan and USA project , this is NOT even news ... Please report on our ~20 years California train project🤣
SCMP basically extension of western media, tying to magnify anything negative about China.😅
We inddians are jeal0us 0f ind0nesia
For those who may think indonesia will ended up in china’s debt trap., fortunately it will never happen, because there’s a “rule” that makes IMF and other foreign fund sometimes have cold and hot relation, but in other hand World Bank always put indonesia as the most resilient emerging market due to this “rule”.,
indonesia had experienced national crisis in 1998 because letting foreign fund touching too deep, after that, the rule was changed.,
indonesia now have a rule that every foreign debt/fund must be B to B joint by 51% ownership (atleaat) must owned by local company, if this terms didn’t pass, the project will automatically denied by parliament, none of the national asset can be use as guarantee for foreign investment.,
And in this train project, it was joint ventures between local indonesian company with ownership 60% and 40% owned by chinese company under new join company called KCIC , and china development bank was willing to give the loan for KCIC,
So indonesia-china government actually just a intervening between these local indonesia’s and china’s company,
This is business to business not gov to gov..
If these company fail to pay their debt, china dev bank can only sue these company under KCIC (local indonesia’s and china’s company), nothing to do with the gov..
That's the theory. In fact, the Indonesian government has used the state budget with approval from the parliament to finish this project. If KCIC faces any difficulties in repaying the loan in the future, the government will surely step in and use Indonesian taxpayers money to service the debt. Next time, please check the facts first.
@@lionelpriyadilie1996 yeah, because the local company was state-owned enterprise, but it doesn’t mean government give country’s budget to take shares of this project, more likely helping to funded KCIC to finish this project due to overruns budget, gov give loan to KCIC but they had to return those loan when the project get their profit, none of the shares was owned by government “directly”,
“Indirectly”, yes government owned the share of this project through state owned company, but state owned is independent company under government’s rule, they create their owned money, but the profit must return to the country,, they have nothing to do with country’s budget nor asset,
If any budget given by government to the state owned company in this country, it’s all LOAN, those state owned company must return those loan back to the country.,
I know this not because googling, but i studied in macro economics analyst, and do know how this country budget works.,
@@lionelpriyadilie1996 due to some certain situation (i.e covid), government can use tax payer money to funded state owned and even private enterprises, they do this in 2008 due to monetary crisis when gov uses tax payer money to funded and boosting private banking sector in this country, including BLBI case, sometimes got the trouble, sometimes it was right, but no matter how those funded enterprises would be, they had nothing to do with government asset, if those funded enterprises go bankruptcy, government has no responsibilities on it, none of the domestic or foreign investment can sue gov for this.,
Learn more
Yeah, chinese debt trap
You need to check the figure of "state capital injection" and "compensation fund" for SOEs in the Indonesian government budget. More importantly, you need to check the net gearing of Indonesian SOEs, especially construction SOEs. The idea that Indonesian SOEs will be able to bear the debt trap without involving taxpayers money is only a fantasy.
Sounds like it's only around 27% over budget. That's not bad. I'm working on an electrical substation where our budget was $800M and now it's approaching $1.5B lol
We inddians are jeal0us 0f inddonesias bullet train
@@Superpooper-2020 why tho, it's just normal train.. just a bit faster..
@@budigemarbalasbudi have you ride HSR train before? It's really feels much faster and more comfortable than normal train.
@@budigemarbalasbudi The Indonesian high-speed rail project is the most advanced high-speed rail project with a speed of 350 kilometers per hour. Currently, only Shanghai has such a fast high-speed rail in China.
@@dreameisters I've never taken the high-speed train, but from Jakarta to Bandung, I prefer the regular train. I think economy class is quite comfortable for the price
I don't know why SCMP make this news when its not even made a headline in Indonesia. Budget overrun is not surprise for us, we already knew this from the beginning of the pandemic when the project got delayed. PT. KAI, Indonesian railway company, made estimation of overrun cost about 1,1B - 1,9B, but its not final yet because the audit is still ongoing. There will be difference between Indonesian version and Chinese version on the cost of several items, because of different assumption which is very much understandable. The biggest overrun cost different is for the clearance of 900mhz frequency right which was hold by telecommunication company. They don't have this cost in China because the 900mhz frequency is free in China. The overrun cost will be paid by both Indonesia and China because China hold 40% stake of this project.
yep, almost every projects (not only infrastructure project) have a budget overrun issue (in addition to time overrun issue)
with recent Globle inflations, 2B is reasonable, and they actually doing great. Look all the major projects around the world, they are always over budgets even in peace time and low inflation
@@syaondri that messed up..gladly this project..was 87% finnish its only finishing the track and station
Terimakasih Tiongkok sudah kerjasama investasi & berbagi ilmunya di Indonesia
Congrats! Decent budget, in Germany they are renovating one train station with this amount (estimated cost today). And it is overdue for decades…
Germany is such an amazing mess of a country
Renovate a train station for 2 billion dollars?? They adding flying cars in there?😂
Stuttgart 21?
I heard it from B1M video
@@giraffestreet what
This is minor, and these things unfortunately happen with huge projects. It is not like Indonesia couldn't pay for it. The California HSR budget was suppose to be $33 billion but it is now over $100 billion with no end in sight. It took California ten years just to plan the project and now they're connecting two insignificant cities in CA talk about poor planning and lack of budget. China at least will get this project completed whatever the cost.
Yup true this project its face of china it will be tested with all people all over country in G20 including american europe and russia if it fail xi jinping gonna lose his face can u imagine if ur country failed to make train and become mockery of the world .this train will be. The best advertising they had if successful
The Shinkansen also ran way over budget, it’s pretty normal. Ig it’s not that normal for China because China already has an assembly line process or making hsr
😅 Compare to Japan and USA project , this is NOT even news ...
SCMP basically extension of western media, tying to magnify anything negative about China.😅
It's pretty normal since GOVERNMENTS ARE INEFFICIENT AND CORRUPT FOR THESE KIND OF THINGS
There is no comparison, the United States is artificial, and the Indonesian project is overrun by unpredictable factors such as the new crown epidemic and commodity inflation
Way cheaper than Californian high speed railway project.
Inflation, wages, energy costs etc have gone up sharply in the last 2 years, thats nothing compared to UK's HS2 project where budget have gone up by £30 billions ouch.
2 billion dollar is a huge value for Indonesia though. And this debt is payable to foreign country, China.
@@cuteandfunnyearthlings2863 Yea USD $2B is chump change, if the overrun is limited to that.
@@navyseal1689 Payable ? Yeah,,,maybe for next 50 years lol. Honestly speaking, i prefere to increase more line Mass Rapid Transporation such as Local Commuter Train, etc instead of High Speed Train
@@cuteandfunnyearthlings2863 ok this makes me feel less bad about the $2b
*amazing Indonesia, China & ASEAN* 👏👏👏 *what if connect bridges and railways among ASEAN to enhance connectivity and economic ties...* 🤔🧐🙂
Sometimes the budget overruns the estimated cost when you are doing a megaproject. What is more important is the benefit this can give to this amazing nation with wonderful people. Indonesia is an amazing country with amazing people. They deserve the best of everything. I have been to 22 countries and 4 continents and this nation is the best of all. Indonesia can always call me if they need any support. I love this country.
The best in terms of what?
Thx 4 compliment i take it brother ..love from indonesia
As an Indonesian taxpayer, I am supporting this visionary project, I would say "shame on those who politize this issue to make Mr. Jokowi looks bad!" But reading the comments warmed up my heart, most of them have clear thinking, and are knowledgeable when writing their comment. Thank you for your support.
The CCP has laid it's (debt) trap upon Indonesia. Let's just hope the next leader won't be licking CCP toes.
@@athallahrafi2319 , The real debt trap is Japan to India. Look at their high speed train, already been 5 years, only built 10km. Modi loved to lick Japanese a$$$.
Just for show
@@athallahrafi2319 Thats what the west and india say because they're scared of China. Many blame Chinese debt for what's happening in Sri Lanka yet only 10% of their debt is actually Chinese and their economy largely got ruined by corruption and their tourism industry getting hit hard by covid.
@@athallahrafi2319, QUOTE
"..... Fourteen years ago, California had a dream: To connect the state’s two largest urban centers via the nation’s first high-speed bullet train, cutting the travel time between Los Angeles and San Francisco down to a brisk two hours and forty minutes.... "
I don't know 😅🤷♀anything about the cost of the project but the train looks so beautiful✨and smooth ride
The first HSR in Southeast Asia and the Southern Hemisphere. Thank you Mr. Jokowi. hope that the relationship between Indonesia and China is getting closer. ️
The budget overrun is caused by increase in the cost of land acquisition. And u don have to be a genius to see who is behind it.....
.... it's always like that....
but don't worry Indonesian will make it happen....💪💪🇮🇩
INDONESIA CHOOSE CHINA, BECAUSE CHINA WANT TO PROVIDE SCIENCE AND TECHNOLOGY TRANSFER, I THINK THIS IS MORE VALUABLE THAN THE REAL VALUE OF THE PROJECT, BECAUSE INDONESIA CAN BUILD IN THE FUTURE INDEPENDENT FAST TRAIN
Congrats Indonesia love from Philippines
Inflation, wages, energy costs etc have gone up sharply in the last 2 years, thats nothing compared to UK's HS2 project where budget have gone up by £30 billions ouch.
You have to measure the length of the project first before speaking.
HS2 length is 330 miles which is around 530 km. This Indonesia fast train only 130 km.
Still Indonesia fast train project MORE EXPENSIVE.
@@Aiast97 You overlooked that the Indonesian high-speed rail project is the most advanced high-speed rail project with a speed of 350 kilometers per hour
@@jackzhou4813 do you even know Indonesia? I guess no.
If you look at the fast train tracks, there are many curves. We are lucky if we can hit the maximum speed.
And do we really need fast train? NO. Indonesia train system is one of the worst in the world. Why spent 8 billion dollar for 130 km tracks? When we can build THOUSAND OF KM normal train tracks with the same amount of money.
@Dark Cloud do you even live in the US? California hsr shorter than Indonesia hsr? That 100 billion dollar is for 520 miles which is 830 km.
And the most important thing are, do we really need it? Can we pay it?
I'm sure American needs hsr, because there are many rich people in the USA already, and the government can pay for it.
But not emerging country like Indonesia. There are many things that must be prioritize. 8 billion dollar is a lot here. It could build more than 200.000 schools.
And do you know what the Indonesia government did the last few months? They raised the fuel price by 40%, and other prices like electricity and gas. All to pay the hsr and new capital project.
@@Aiast97 HS2 is a money pit, you know they are prolonging and dragging it out because the tax payers are paying for it.
Going over budget is pretty normal for project such this, shinkansen has the same problem too at first but look how far they've gone, this is also pretty cheap compare to any other country. I do believe these are all just short term effect that'll be outweight by it's long term effect in the future
It's quite normal for a country with such diverse landscape to cost more in order to complete a megaproject.
It's not cost it's economic viability of project sooner IMF bailout ready
@@naveenkc8606we don't want IMF after what they did during '98
@@naveenkc8606 I believe IMF is more interested in the Indian HSR, you should keep an eye on that one😅
Sebenarnya aku menantin shinkansen nya jepang, dan sempat kecewa ketika tahu proyeknya ganti ke tiongkok. tapi setelah menelusuri lebih dalam, ternyata Tiongkok akan berbagi ilmunya dengan kami, aku pun sadar kalau ini yang kami butuhkan.
Itu benar supaya Indonesia bisa mandiri bikin sendiri gak jadi konsumen terus
Japanese projects in India also need the help of China! Heavy equipment on Indian high-speed rail construction site also comes from China!
This project actually starts planning in 2008. After a very long competition progress between China and Japan and finally China won it. But Indonesia government do not want to put money in the project, so there's a company joint with Chinese and Indonesian venture did the investments. So even if it overruns the budget, there's nothing to do with national debts blah blah, please do not try to imply this SCMP.
There is nothing with national debts. Are you sure ? The joint company basically is States Own Enterprise, that needs capital injections from Government. So indirectly,,its the burden for Country.
Also in the beggining of contract, the President said that it's B to B (Business to Business). Thats one of reason China is choosen instead of Japan. But guess what ? After cost over run, basically China ask Indonesian Government Guarantee. So it's not pure B to B anymore
@@koermana still is china is paying for the cost overrun as it has agreed when they won out against japan.
also yes the joint company is state owned but the state didnt put its money
in
@@wonkagaming8750 The states didnt puts its money, are you sure ? Here's example of local news
PT Kereta Api Indonesia (Persero) (KAI) received Rp 4 trillion in funds from PMN (State Capital Participation) to increase the lack of funds for the Jakarta - Bandung High Speed Train (KCJB) project.
@@koermana thats the railway they need to make preperation, like having train that would intergrate withe hsr and experiment with scheduling.
@@koermana all that for just 143 km of HSR (Jakarta - Bandung)? how much more will it cost to Surabaya (+550 km), I wonder
I saw the same issue happen in another country. They gave them a Budget.... The problem was they sent more and it was not even finished and they were unable to pay for something unfinished now they told them they will keep their cargo port as warranty.
Sri Lanka?
The problem is from your country not mine... They are corrupted... Thats why the budget is bloated... We give the design and cost... Its them who keep change the budget not china
@@crayons1817 Pakistan, Filipines, many other Asian countries and even Hispanic countries. They provide you with the loan but they send their people as managers. Money disappeared and sometimes the budget was not even similar to the one you sign. Then your country will leave paying this debt to china for more than one decay.
Bro It's Because Of The Oil Prices, War , Inflation and Etc... that happened during the Construction Period. They Didnt take it into planning
@@marshinameneses6633 In Pakistan, China made us the Lahore Metro Rail with a small track length but the costs of making it were so high the government now has to subsidize the tickets to make it affordable for the public and will also keep paying 100s of millions of dollars on it every year. The train service made by the Chinese is also one of the least used.
As for the cargo port part, Pakistan had initially leased Gwadar port to Singapore who then transferred that lease to China. The lease limit was increased a bit to cover for the enormous investments China was/is making in Pakistan.
Cost overrun that's happen caused by some reasons,
First :land acquisition
Second : changes in construction process due to natural conditions
Third : delay of the project caused by covid 19 pandemic
Meanwhile the minimum wage is less than $200/mo. Who's gonna use this train?
Thank U China Government From us as an Indonesian People. We Hope Indonesia and China akan semakin erat hubungan kedepannya.
Don't overdo it
It is much better than the HSR that Japan is helping Vietnam to build. Scheduled completion year: 2045.😂😂
The project planned completion year is actually 2050.
na you got that wrong bud its 2069.
And 58 billions dollar in budget.
🤣🤣🤣🤣😄
Would still take Japanese built over Chinese built any day of the week
No surprise the budget is overrun, Even in U.S at my city (San Francisco) a metro station cost 10 years and tipple the original budgets to finish it ( next month ). The infrastructure which need to buy the land from private always cost way more than the original budget.
We will never get that HSR completed. Wait another 20 years for the grand opening from farm to farm route.
The California high speed rail project has exceeded the original budget by almost USD50 billion. And its not even half completed. So 2 billion is small change especially when it's about to commence operations.
Califirnia rail has taken 6 years for the project but still not complete.
@@psk2465 It is more than 6 years. It took 10 years to get on the bill to move forward on the project. It took more than 10 years to get the land. Right now, there are 0 tracks, just a bunch of bridge and tunnels that can't even allow a train to go on it yet.
This train looks terrific. I am so happy for Indonesia to have the first bullet train in South East Asia. Even US, Canada and Australia doesn’t have it.
They don't need it ....😉😉😉
@@jaideepraj1965 Bruh US superpower dont need it?
@@jaideepraj1965 Brisbane-Melbourne is the busiest air routes that is not crossing sea
HSR is needed in areas that make sense. The US has limited areas where HSR is feasible. The NE and the Cities of California make sense. Maybe Texas.
Think of it like this: France has HSR lines all across their country. Why can’t the US do it?
France is smaller than the US state of Texas.
That is how huge the US is.
This becomes a problem for the construction of HSR. Population centers are too spread out for HSR to be cost-effective.
Don't count on Chinese products
overbudget? that is expected for all public funded projects. so long you got it done and on schedule, mission accomplished. japanese funded bullet train for india supposed scheduling operational in 2023, but now it extends until 2028 and the total price tag might double its initial cost.
It's land clearing problem...and also..it's built by join hand between china and Indonesia infrastructure company...it's priority of transfer technology...our workforce would study how to build bulet train directly from china...then in the next time...we would build alone...it's already implemented in our LRT ...Which is build by local
I'm waiting for kids to write
DEBTTRAP in comment section
Debt trap, you're welcome
@@crocket1338?
Debt trap
@@lly_09 space? Between Debt trap?
Deaths trap.
I am little dissapointed I like the red-grey coloured more but it's okay Indonesia succeed to make this before us.
The original design was red and gray, I don't know why after it was finished it was different from the original design
the train in the video is an inspection train, the passenger train is still red and gray
@@misterx3770 the yellow one is inspection train
The color of the most trainsets are red grey. The yellow train above is the inspection train.
@@bayun6114 what is Inspection Train?
Maybe Asian countries aren't used to over budget but here in north america it's quite common. Actually it's the norm. Also with the COVID thing I'm surprised it's only 2billions. Yes you read it well. Only. Here we do renovation on a tunnel under a river and it's 6 billions. Don't know how much is two billion for your guys. But in north america two billion in a big projet is peanuts. It's not even worth mentioning.
I'm indonesian and I think usd 2 billion overrun budget is small for such big project. but you know haters will be haters, especially the oppossers of current indonesian president. They will do anything to make him look bad. Plus the hate comes from some jealous neigboring countries. They'll say Indonesia will be trapped in debt trap LOL in fact the debt of Indonesia is only 39% of its GDP. Very small. And again this project is Business to Business, not G to G.
@@manusiabahagia7081 Subject that heavily discussed is how R1 promised not to use National Budget to fund the project.
I Love China 🇨🇳, Greetings from Indonesia 🇮🇩
🇮🇩❤️🇨🇳🌹
when japan first build their shinkansen they also overrun budget 3x more than their initial budget, but look at now, its initial overrun turn into a miracle
the budget overrun is still manageable I think. It's due to mostly for buying land for the project. And also, I am well surprised that the budget only swell that much after almost 2 years of no progress at all due to the pandemic, and tbh it's looking great so far for the project itself.
Shinkansen was 4 times over budget back then at first, but now it's highly regarded as one of the best in the world and the pioneer of high-speed rail. I just hope that this project will provide benefits for Indonesian people for many decades to come, just like Shinkansen back then
Don't worry Indonesia, Australia planned for an internet upgrade and it went $35bn over budget, and it's still the worst of developed countries
Wait, $35bn overbudget for freakin internet upgrade? The heck their upgrading to? Interplanetary internet?
is it gonna connect with the Aliens?
The first time high speed Railway in south earth 🌏🌎🌍 goodjob👍💪 Jakarta Bandung 🚄🚅 Indonesia🇮🇩🇮🇩 China🇨🇳🇨🇳
It's funny that the Chinese company is citing the price tag gonna be extra $1bil and the Indonesia be like, nah, it's $2bil. Like along the way they forgot who is paying who.
😂😂😂
Quite normal to overrun
MBTA here in Boston and MTA in New York they overrun every year and keep raising the ride fare
the train was built during the time where there is no covid and the world is overall quite in balance and a more peaceful time than 2022, but 2billion is nothing compared to what other country's similar project overburget cost, I just hope that Indonesian that hear this will not riot or hate china for this :v
(FYI people where up and arm to not use china's service, some Indonesian just don't like Chinese, don't care if it's local that were raise and born in Indonesia and can't even speak Mandarin, nor Chinese mainland)
Edit: I said "some" here in a very minor but loud community, there are either hardline patriotic or hardline Islamists here in Indonesia that can easily persuade uneducated or usually poor Indonesian to either do riot (historically) or other things to make a mess, but as I said, these are minor. most Indonesian, no matter where are 9 out of 10 very friendly.
Siniphobic Indonesians should have their DNA tested. They will be surprised to find out that at least they have more than 25% Han Chinese DNA 😆😆
A journalist even dare to ask the president : is this train was gifted by the CCP?
Can't blame em, china been an bully in SEA. 🤷♂️
What? No we don't hate China why would we if China is one of our biggest trade partners, the negative sentiments mainly because SCS
cause most (or the majority) of Chinese still loyal to China, even though they were born in Indonesia.
even when Indonesia has conflict with China in the South Chinese Sea, there are many Indo-Chinese who are neutral and don't blame China for what they did putting Indonesia island in a China's passport.
We always go overbudget in Canada. I don't remember any project that doesn't go overbudget.
over time people will accept it and proud of it! this is such a great achievement for indonesia!
They will regret it when they become bankrupt
@@Jaylio Look at Indonesia gdp
@@Jaylio cringe cow worshipper jealous💀🤣 we get it bruhh indonesia more richer than india👍
What achievement. Everything was done by Chinese companies.
this project is cooperation between 2 countries, not country A help country B but so many troll comments say debt trap and bankrupt 😂
More or less,they alaways can make efforts to find an angle to bias China.😂
The Covid-19 pandemic slows the completion of the Jakarta-Bandung high-speed rail project for two years and makes costs swell
This is a great idea that someday this bullet train can connected among countries perhaps between ASEAN... Just like in Europe using train between countries...
it is possible, the most possible thing in Kalimantan (as the new capital of Indonesia laid here), there is a big chance that the government would build an HSR (ofc locally made) on the entire Kalimantan linked to Malaysia and Brunei. Another possible thing would be happened in East Nusa Tenggara to link with Timor Leste or in Papua to link with Papua New Guinea but obviously, that's for another talk since the economic gap between Indonesia and two those country are really huge.
•Indonesia needs HSR (High Speed Rail)
•India needs HST (High Speed Toilets)
Keep quiet pindonesian. Go see a soccer match and!
@Riya Mahato liar like your country is joke every indian always lied
Just let their citizens(Indonesian) to pay the debts! Because they all are RICHEST IN THE WORLD and G20 COUNTRY!
Aku mau ketawa baca komentar anda....btw kita saling menghargai satu sama lain tidak ada kata iri maupun dengki diantara kita untuk negara asia tengara melangkah untuk maju aminnn.
Semoga keluarga mu dimudahkan rezeki aminnnn☺☺☺
Waste of money, the train doesnt even stop at bandung, you will need to take another transportation to bandung
means that you do not know the core business of KCIC at all. try to find information that at each station they have hundreds of hectares of land to build new economic zones, in the form of properties, shopping malls, offices and others (superbloc). and they have a monopoly on it all, hsr is just a backer to increase their property prices. if you ask what is KCIC? they are property developers with huge profit potential
Over budget is nothing to be serious about. It happened to every Govt. Run projects out there. Look at the UK HSR project, that one ballooned like a stomach with inflammation.
Maybe in western economics but it’s not like that anywhere else
Congratulations Indonesia
Well, this budget overrun makes this project even more expensive than the Japanese contractor initial bidding price which was US$ 6.2 billion. (Vs current budget utilization of US$ 7.36 billion AND COUNTING!!!).
In comparison, we have another expensive project Jakarta Mass Rapid Transit with Japanese, it was mostly on point and on schedule...
China. Vs Japan..... Please don't compare
Indonesia pay for ToT also so yeah of course China railway projects more expensive
@@pritaf.s3637bruh, japan too.
But after this we be able to build our own HSR train .knowledge is expensive broo
@@SeiaF16 no they don't
That's the exact reason why India is building her own indigenous bullet trains along with Japanese investments as well ofcourse.
What? What are you smoking? Japan is building for the whole HSR with Japan money. India don't know how to build HSR.
where is the fast train in poor India wkwkw
Many years later…When it comes to Japan-built train in India…
@@dikysaputra5423 ...lol 144 billionaire 3rd highest in the world ... In India f*** off
@@manthanpatel6295 And the rest live below the poverty line with the worst sanitation in the world
Not surprised with how expensive the raw materials got in the last 12 months.
Corruption is rampant in Indonesia. Difficult to do business there if one is unfamiliar with all the hidden costs.
Welcome to the jungle
We got fun and games
pray that no psychopath who will plant bomb in that bullet train
You say corruption in Indonesia is rampant?? can you compare bullet train with other countries?? Indonesia is already the cheapest among bullet trains in other countries..
you must be a malaysian who says Indonesia is always corrupt..you don't think your prime minister najib razak is the biggest corruption
Dia tukang fitnah ke Indonesia , dia Dari Vietnam
An overrun of 2 billion USD for a 7+ billion USD project is not that much, especially considering it is the first project of this type in Indonesia.
The way Widodo walks always fascinates me 😂😂😂😂😂
Jenius☺
I am proud that my president is the most popular president in the world and the Indonesian minister of finance has received the best ministerial award in the world
@@bamc28 I like him too
Will they burst into flames like a set of Chinese headphones.
So you Indiot cursing Indonesia people to die?
Unless you can do it by yourself.
Only 2B, chicken feed. A lot of people get the benefit from otherwise jam packed living condition
But we still can managed it, this is just small tiny problem to Indonesia. You guys just upset to us because our leader said *this is not because china's help*
for what I know the overrun was caused by land acquisition, the discrepency of budget between Indonesia and China is because Land is not included in the construction budget, it is the responsiblity of Indonesian government to acquire and provide the land
land acquisition has always been the job of the host country and never the job of the lenders.
It's like trying to blame a bank for someone not being able to afford a garage because the car loan they got didn't include the cost to build a garage.
@@dickmelsonlupot7697 A wrong analogy. The right one is that somebody can't blame a bank for not being to afford the land to build a garage. Because the job is basically to build the infrastructure for the HSR (the garage, the road, and even the car), but not the land where the garage and the road lies.
@@gunh4129
That's basically just the same thing I just said.
I based my comment as a reply to those who are blaming China for not including the money to buy the land.
Which if you didn't know, there are a lot of them here.
Even with how sshhhtty China is, even I know that they're not at fault here and that it's practically illegal for them to fund anyone to buy land for a project since it's basically the host country's job to procure land rights
Poor report. No cost breakdown and supporting evidence. This reporter needs to go for retraining
That's extra 1 billion is for the politicians
142km project took 7 years to complete with 2 billion dollar cost overrun.
which high speed project did not over run cost? especially in pandemic and today while the cost was calculated years before. on top, I am happy for Indonesian. With the amount of population, the transportation infrastructures were really lacking, and now they have something to move on, similar to the metro project in Jakarta.
That's how they get kickbcks n undertable...understandably from a 3rd world country
Well, these past few years have been crazy. I am also overruning my 2017 budget.
Over budget is normal in democratic countries system that everyone can claim billions for land compensation!
That's the problem with democracy.
Honestly speaking, i prefer to increase more line Mass Rapid Transporation such as Local Commuter Train, etc instead of High Speed Train.
I prefer like a more loop line and or commuter line of Train in Jabodetabek area, or other major city such as Bandung, Semarang, Surabaya. It's more impacted to reduce the awful traffic jam problem, increase productivity of people etc.
U are right..and indonesia shouldve started to build it 10-15 years ago when the economy was at the peak..dunno what all the previous gov of indonesia did..
hmm yes keep the development focus on cities not the country side
@@jeffbolton2986 corruption.
Surprisingly, he former president used to live within 2 km from my house (my friend’s neighbor).
Let’s just say that he got lots of money from the 10 year corruption.
But it’s quite normal since he’s from the military.
@@jeffbolton2986
Because it'll hurt the automotive industries. The one who reap the most benefit from a booming economy.
@@wonkagaming8750 And the HSR is not focus on major city such as Jakarta, Bandung, and later on Surabaya ? Lol... Of course Country side needs development also.
But what i mean is if HSR (major city to major city) vs Increase Commuter Line, i know what i'm choosing on.
Nothing new, the inflation alone is a problem here. In my place the builders simply leave constructions, because they cant meet their ends.
Actually China did not increase the price of the project even there was a massive inflation going on. The budget was increased due to massive increase in land acquisition cost, which was Indonesia's responsibility. Indonesia did ask China to increase the loan to fund the land acquisition, but China declined. The agreement in the first place was China to provide the infrastructures and mechanicals, Indonesia to provide the lands.
The biggest goal and significance of China's participation in Indonesia's yavan high-speed railway construction is to push China's high-speed railway to the international market, which adds an important achievement to China's the Belt and Road policy in developing countries.
When Indonesia's Yavan High Speed Railway was finally handed over to China for construction in 2015, and China defeated Japan in the competition, all this has determined that Indonesia's Yavan High Speed Railway has chosen the right direction. Look at the high-speed railway project built by Japan for India. Due to the land occupation problem, only 10km has been built in five years, and the cost has doubled. Now, the completion will be delayed from five years to 2028, but many people do not believe that it will be completed in 2028.
The delay was due to internal state politics in india not because Japanese worked slow or Chinese worked fast.
@@aryans5129 internal state politics means corruption
@@Abelion_Jayakerto no, not corruption. Regime change led to change in priorities. Newly elected representative was not so keen for high speed trains and hence didn't focus much on it.
username checks out
They have nothing to push except reverse engineering jynk
so which rail or bridge project in USA is built within budget?
I suppose it is always easy to throw mud at Chinese projects...
The cost overrun is caused by poor management and feasibility study.
Had the feasibility study (FS) was correctly conducted. it wouldn't missed some important factors as such :
1. Miscalculation of geological data for tunnel drilling : the FS said it was only light clayshale, but no, it was extreme clayshale. Not ideal for tunnel drilling, need more U$$
2. Mistakenly excluded the fact that the utilization of GSM-R system in Indonesia is free just like in China.
Japan did the FS for years simce 2008/9, and they did not recommend bandung's route (they offered longer route to surabaya & request govt guarantee due to its sheer costs). I wonder when did the Chinese's FS was started?
No worry, the biggest fool here is not china. But the Indo's govt.
Wow.a bullet.congratulations Indonesia
Indonesia accept bullet train from china because China give they ToT (transfer of technology) .
Many train in indonesia actually build by local indonesian industry like INKA company etc
I mean, back when Japan first made shinkansen in the 60s the budget went out of control and doubled the original estimation
India bullet train is help of japanese they provide budget of 60% which is less then 0.1% interest rate .in sinzo abe time .
He is very great leader and India's friend. 🙏
Atleast Indonesian railway station infra is beautiful and cleaniear than that of our indian railway stations
Dont worry, we can growing together. Namaste from Indonesia
@@rah164 assalamualaikum
@@morrazzo4432 wa'alaikumsalam
Over run from calculation is acceptable and common as long as the use of the money is responsible and the project is successfully
Ahh yes, International Media, always showing something from the negative side first to get attentions. This is like how most of them talk about Jakarta's problem as their "gold mine" for their attention and ratings. Plus, it's Indonesia, they know well how indonesian, despite the negative side they're showing, will always look up for any video which titled or discussing about Indonesia anyway. They are really smart to exploit Indonesian's big population and their overproud behaviour. Sometimes it's just sickening at least for me.
saya suka keretanya terlihat mewah dan bagus.semoga kedepanya bisa buat sendiri model seperti ini aminn
My hope was to be able to use this train around this year but covid happens and it have to be delayed,im gladd we still continue this project
Just two billion? Just put a search on western infrastructure like the Big Dig, Jubilee Line or HS2 and you will be shocked about the cost.
Chinese 🇨🇳 debt trap diplomacy
as a malaysian im hpy n proud wit indonesia.. kip it up n go ahead. malaysia corruption corruption corruption.. well done Indonesia
Even tho it's very over budget, it's not really that insane compared to other massive projects like *cough California HSR *cough
I notice so many "smart" people with their opinions and even some of opinions are out of the subject
Sebagai orang bandung perlu pemerintah tau kalau bandung punya sesar lembang aktif kalau gerak ya gempa
2 billion is not a lot…compares to that Californian one
China also developed a highway connecting Phnom Penh to Sihanoukville in Cambodia which reduced travel time from 6 hours to 1.5 hours. Glory to the next superpower!