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Government allocates more funds for railways this year
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Passengers enjoy a new KAI Commuter Jabodetabek (KCJ) train car. (The Jakarta Post/Ricky Yudhistira)
T
he Transportation Ministry has revealed that it will disburse more funds through its public service obligation (PSO) for state-owned railway operators to Rp 2.1 trillion (US$ 157.03 million) this year, an increase of 15 percent from last year.
About 65 percent of the money would be allocated for inner city rail services at Rp 1.8 trillion, such as the commuter line run by state railway operator PT KAI Commuter Jabodetabek (KCJ), a subsidiary of PT Kereta Api Indonesia (KAI), ministry director general for railway Prasetyo Boeditjahjono said recently.
“We are giving high priority to the inner city railway that is used by the public daily,” he said recently.
(Read also: KAI to spend Rp 7.5t for expansion in 2017)
The PSO was also given to the company with consideration that it has managed to increase the number of passengers to its current rate of 900,000 people daily, from some 450,000 before the company started to improve its services, Prasetyo said.
The company has set a target to increase daily passenger numbers to 1.2 million by 2019, he added.
The rest of the funds will be allocated for the intercity railway, both for medium and long routes, as well as for preparation for the Idul Fitri holiday, in which millions of people take part in the annual exodus from urban areas to their hometowns.
From the PSO, PT KAI will get Rp 745.3 billion and KCJ will receive Rp 1.34 trillion. (bbn)
