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Jakpro reveals funding shortfall for constructing Asian Games projects
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Workers construct a beam for the light-rail transit (LRT) network in Jakarta. (Antara/M. Agung Rajasa)
C
ity-owned construction company PT Jakarta Propertindo (Jakpro) has said it has a financial shortfall of Rp 2 trillion (US$149.41 million) to construct three projects that are related to the 2018 Asian Games.
The shortfall did not include capital injection from the Jakarta administration that partly had already been disbursed, said Jakpro president director Satya Heragandhi as reported by tempo.co on Friday.
He said his company had received Rp 1 trillion of a total 1.95 trillion that had been allocated in the Jakarta city budget.
(Read also: Cawang-Cibubur LRT line to launch in March 2019: Minister)
To construct the three projects—construction of light-rapid transit (LRT) rail, renovation of a velodrome at Rawamangun sports complex in East Jakarta, and renovation of an equestrian facility in Pulo Mas, East Jakarta—the company needs Rp 6.1 trillion.
The LRT project cost Rp 5.2 trillion, the Rawamangun project costs Rp 513 billion and the Pulo Mas project Rp 400 billion.
To cover the shortfall, the company would propose an additional capital injection from the city administration, but if the proposal was rejected, the company would seek loans from the banks, said Satya.
Another alternative was to issue bonds with collateral of Rp 7 trillion to 10 trillion worth of assets owned by the company, he added. (bbn)
