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Jakarta to provide extra loan for Asian Games projects
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Field trip: President Joko "Jokowi" Widodo (center) talks with Youth and Sports Minister Imam Nahrawi (second right) during a visit to the Gelora Bung Karno main stadium in Senayan, Jakarta, late last year as part of the country's preparations to host the 18th Asian Games in 2018. (Courtesy of Youth and Sports Ministry/File)
T
he Jakarta administration will provide additional funds for city-owned developer PT Jakarta Propertindo (Jakpro) to cover the high costs of three projects ahead of the Asian Games in August 2018.
Acting Jakarta governor Sumarsono said on Wednesday that the city would give the company an extra Rp 1.95 trillion (US$146.25 million) through a regional loan scheme for the projects.
Jakpro has been tasked with building three projects, comprising a velodrome and equestrian facility in East Jakarta and light rail transit (LRT) from Kelapa Gading in North Jakarta to the velodrome. The LRT line will connect the competition venues.
“We will propose the loan in the revision of the 2017 city budget that currently is being discussed,” he said.
Sumarsono said the scheme would be easier to execute than proposing another capital injection. “We have committed to holding the event. Therefore, we will help the company as much as we can,” he said.
Jakpro estimates that the three projects will cost around Rp 5.9 trillion. The company received a capital injection from the city administration worth Rp 1 trillion in 2016 and will receive another Rp 1.95 trillion in 2017.
Jakpro president director Satya Heragandhi previously said the company would try to find a private loan to cover the Rp 2 trillion needed for this year’s costs.
