TEMPO.CO, Jakarta - The Finance Minister Budi Karya Sumadi said that the government has named sate-owned railway company PT KAI as the investor of light rail transit (LRT) project for Jakarta-Bogor-Depok-Bekasi or Jabodebek. The government wishes to finance projects in Java through sources other than the state budget (APBN).
According to Budi, the appointment of state-owned enterprises (SOEs) to carry out strategic projects will solve financial troubles faced by the government. The government initially planned to finance Jabodebek LRT project through the state budget. It has scrapped the plan because the project will cost Rp23 trillion. “We have to attract private firms or SOEs.”
Read: Govt Rail Projects in Financial Problems
Jabodebek LRT project, designed to pass through the routes of Cibubur-Cawang, Cawang-East Bekasi and Cawang-Dukuh Atas (first phase), is now 12 percent complete, despite having been launched by President Joko Widodo in September 2015. The government is facing financial problems, among others.
Budi said that the government had earlier appointed state-owned construction company PT Adhi Karya (ADHI) to work on the project. He, however, said that the scheme was a peculiar one because Adhi had instead received state capital injection (PNM) for the project. “The government must be consistent. PNM [disbursed to] SOEs are for investments [purposes],” the minister said.
The government has now found a new formula for the megaproject by appointing PT KAI as an investor, Budi said. The appointment was set forth in a revised presidential regulation on Jabodebek LRT project acceleration. “It’s been finalized, pending the President’s signature. [The regulation] will be issued this week, hopefully,” he said.
Minister Budi added that the presidential regulation will regulate the government’s obligation to provide PMN to the KAI for investment. The government plans to disburse Rp5.6 trillion in 2017 and 2018.
The fund will help the PT KAI to cover the financial shortcoming of the project amounting to Rp23 trillion. KAI will also seek loans from financial institutions. “After being leveraged through the PMN, the KAI can seek loans. So, the cost of Rp23 trillion can be met entirely.”
KHAIRUL ANAM
