Minister Encourages Investors to Take Up Airport LRT Route

TEMPO.CO, Jakarta - Minister of Transportation Budi Karya Sumadi has called on investors, who are interested in investing in the Light Rail Transit line (LRT), to invest in the airport route line because of its potential in economic value.

"There a number of very potential routes, especially the ones that goes to and from the Soekarno-Hatta Airport, either from the Halim Airport to Soekarno-Hatta or the southern areas, which would start with the MRT before being continued to BSD and Alam Sutera areas; these are surely paths with economic values," Sumadi stated in Jakarta on Monday.

He revealed that the government would welcome investors who propose strategic projects, including the LRT, as the state budget cannot cover the entire cost of infrastructure projects.

One of the companies that have expressed interest in the LRT project is PT Ratu Prabu Energi Tbk., which is a company that works mainly in the oil industry.

"About a year ago, PT Ratu Prabu had shown their interest in us, and we would like to welcome anyone from the private sector seeking to establish an investment in Indonesia, as the state budget is insufficient to finance the whole development, especially the LRT," he noted.

However, he stated that his ministry would first conduct an initial study on prospective investors regarding their track record, through proposal submissions and 'beauty contests.'

"Surely, there is an obligation for PT Ratu Prabu to partner up with an operator; essentially, the government is opening the opportunity widely, and there needs to be an agreement so that it does not become a boomerang for us," he remarked.

Moreover, he stressed that his ministry is not turning down the possibility of simplifying regulations in order to ease investors to involve in the development of infrastructure projects.

"The ministerial regulations certainly should not be an obstacle for investments to enter Indonesia; we are open for discussions should there be any regulations that are not possible. I think it can be implemented as long as it possesses good governance," he revealed.

As for the value of investment, which is believed to reach Rp400 trillion, the minister declined to make a comment.

"I would rather not comment on the scale. The LRT project for the Jabodebek is valued at Rp29 trillion, meaning it is 13 times as much. We want it to be done gradually as it has been portioned, unlike the previous time," he pointed out.

ANTARA