KAI Predicted to Face Rp3.4tn Deficit until Year's End

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  • TEMPO.CO, JakartaState-owned train operator PT KAI was forecasted to experience operating cash deficit of up to Rp3.4 trillion until the end of 2020. This was attributable to the lower public mobility during the pandemic.

    KAI CEO Didiek Hartyanto said his company’s revenue dropped since March 2020, when the first COVID-19 cases were reported in Indonesia.

    "Seen from the operating cash flow, we still see positive results in January at Rp606 billion and in February at Rp485 billion, while in March, it is minus Rp584 billion,” said Didiek in a meeting with the House of Representatives (DPR) Commission VI at Parliament Complex, Senayan, Wednesday, July 8.

    From the net cash which has been reduced by interest, financial expenses, and income tax, the company incurred a deficit of up to Rp693 billion in March, and in April Rp811 billion, May Rp414 billion, and June Rp574 billion.

    While its revenue continued to fall, the company must also pay employees’ salaries of Rp26 billion per month and other operational components. In a worst-case scenario, if the company’s cash flow keeps dropping, it would possibly incur losses of up to Rp1.87 trillion from its budget and work plan (RKAP).

    Thus, Didiek revealed that PT KAI urgently needed the government’s bailout worth Rp3.5 trillion: Rp680 billion for train maintenance, Rp740 billion for infrastructure maintenance, Rp1.25 trillion for employees’ salaries, Rp550 billion for fuel costs, and Rp280 billion for other operational support.

    On the other hand, PT KAI sought to increase revenue from the cargo transportation business. “We are trying to transport MSME goods, furniture, vegetables, fish, and everything, even though (the income is) not much,” said Didiek.

    Read: Indonesia Resumes Regular Trains Operation under Strict Protocol

    FRANCISCA CHRISTY ROSANA