TEMPO.CO, Jakarta - The government is facing financial problems with rail projects which include Greater Jakarta (Jabodetabek) light rail transit (LRT) worth Rp23 trillion. To prevent project delay, the government is currently revising the presidential regulation on light rail transit. “The revisions to the regulation will be concluded this month,” the Transportation Ministry official Prasetyo Boeditjahjono told Tempo yesterday, March 19.
The revised presidential regulation will see state-owned railway company PT Kereta Api Indonesia (Persero) assigned not only as an investor but also as the operator. The government’s decision was made in order not to burden the state budget (APBN) and to allow the project to continue.
The groundbreaking for the megaproject was carried out by the President in September 2015. The initial plan is to finance the project through the state budget. To speed up construction, state-owned construction firm PT Adhi Karya Tbk (ADHI) has been named the contractor.
The Transportation Ministry and ADHI had signed the project contract even though they had not listed the source of finance. However, the government has recently tightened the budget that has led to a halt to government-sourced funds. After almost two years, the light railway project is only 12 percent complete.
Aside from Jabodetabek light rail project, the government is also facing financial difficulty with Jakarta-Bandung bullet train project that cost US$5.1 billion or around Rp68.069 trillion. China Development Bank (CBD) had planned to finance 75 percent of the project. The project was inaugurated by President Joko Widodo in January 2016 and is expected to complete by 2019.
The CBD, however, has yet to disburse the funds, citing land clearing problem. “Rp2 trillion is needed for land clearing,” said Antonius Kosasih, financial director of state-owned construction company PT Wijaya Karya (Persero) Tbk (WIKA).
WIKA is among state-owned companies in the consortium PT Pilar Sinergi BUMN Indonesia (PSBI), who owns 60 percent of shares in PT Kereta Cepat Indonesia-China (KCIC). The other members of the consortium are PT Kereta Api Indonesia (KAI), state-owned toll road operator PT Jasa Marga (Persero) and state-owned plantation company PT Perkebunan Nusantara VII (Persero).
KCIC president director Hanggoro Budi Wiryawan said that the company will purchase 500 hectares of land in Karawang and Purwakarta owned by private companies and locals.
KCIC has urged all shareholders to chip in for the land clearance. The shareholders are four state-owned enterprises and a Chinese-owned consortium led by China Railway Corporation. WIKA said that it has already earmarked funds for the land clearing.
KAI financial director Didiek Hartantyo said that the company awaits the profit generated from asset utilization managed with state-owned property companies. The money will be used to finance land clearance for bullet train project.