Jakarta: The $1.8 billion Bandung monorail project may miss its June start of construction, as the rupiah’s depreciation forces contractors to recalculate their costs.
Endi Roswendi, director of Jabar Moda Transportasi, said that the company is now targeting a feasibility study that would be completed by June to take into account the rise in expenses stemming from the weak rupiah.
The rupiah trades at around 12,600 against the US dollar, compared to around 11,000 when the monorail’s initial plan was brought up.
“A lot of factors need to be recalculated,” Endi said over the weekend.
He did not say when construction would start.
Jabar Moda Transportasi is a joint venture between Jasa Sarana, a West Java government-owned enterprise, and Sarana Infrastructure Indonesia, a unit of Bandung-based property group Panhegar. Jasa Sarana owns 80 percent of the joint venture.
China National Machinery Import and Export Corporation had agreed to finance construction of the 90-kilometer track and supply the trains, pending the feasibility study. In return, CMC would get a 40 percent stake in Jabar Moda Transportasi, with Jasa Sarana’s share diluted by half.