The concession period for the Jakarta – Bandung high-speed rail (HSR) in Indonesia has been extended from 50 years to 80 years. PT Kereta Cepat Indonesia China (PT KCIC), the developer of the line, had proposed the extension in December 2022 due to lower passenger demand compared to initial estimation.
Previous studies had estimated an average footfall of 60,000 riders per day, however, this was later reduced by nearly 50 per cent to 30,000 average daily riders on the line.
The 30-year extension period will allow the contractor to fund the HSR’s cost overrun, allowing timely completion. The extension is also expected to improve bilateral relations between the Governments of Indonesia and China.