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KAI needs Rp 7.5t next year to purchase train coaches, fund railway projects
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Rail project: President Joko Widodo (right), accompanied by the president director of state-owned airport operator Angkasa Pura II, Muhammad Awaluddin, inspects the construction of the airport railway system connecting Soekarno-Hatta International Airport with downtown Jakarta in Tangerang, Banten, on Nov. 11. (Antara/Muhammad Iqbal)
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tate-owned train operator PT Kereta Api Indonesia (KAI) will allocate Rp 7.5 trillion (US$557.83 million) in capital expenditure (capex) to purchase new train coaches and finish government projects such as the light rapid transit (LRT) system and airport railway system.
KAI finance director Didiek Hartantyo said the funds would come from both collected debt and the company's internal cash. KAI targeted Rp 3.2 trillion in collected debt, as it already secured Rp 1.2 trillion from Bank Mandiri, the company would issue a Rp 2 trillion bond later.
"The remaining (Rp 4.3 trillion) will come from the company's internal cash," Didiek said.
He said PT KAI had already ordered 438 new train coaches worth Rp 2.19 trillion from state-owned manufacturer PT Industri Kereta Api (INKA).
"INKA promised to finish 70 coaches before Idul Fitri (in June 2017). It will be helpful to face the jump in passenger numbers next year," he said after signing a memorandum of understanding (MoU) with Bank Mandiri in Jakarta on Tuesday.
PT KAI would purchase 900 new coaches from INKA within the next three years, Didiek said.
The airport train project, which costs Rp 1.1 trillion, is expected to be finished in the second semester next year, Didiek added.
Meanwhile, LRT Projects in Palembang, South Sumatra and the Greater Jakarta area (Jakarta-Cibubur) should be finished before the 2018 Asian Games, he said, adding that for the project, PT KAI had been appointed as the operator responsible for preparing the equipment, such as train signals and the traffic management system. (bbn)
