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Railway operator needs capital injection to invest in LRT
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Workers continue the LRT project in Makasar subdistrict, East Jakarta, on Feb. 7. (JP/P.J.LEO)
T
he government intends to propose to the House of Representatives a state capital injection (PMN) for state-owned railway operator PT Kereta Api Indonesia (KAI), to help the company invest in the ongoing light rail transit (LRT) project in Greater Jakarta.
“If the proposal is approved, then we will disburse the PMN [to PT KAI]. It is still in the finalization process,” State-Owned Enterprises Minister Rini Soemarno said on Monday.
The Rp 23.3 trillion (US$1.7 billion) LRT project, which is expected to be completed in 2018, has hit a wall because of a tight budget. It is part of infrastructure expected to facilitate sportspeople and spectators moving from one venue to another during the upcoming Asian Games.
(Read also: Government to decide on LRT financing scheme on Friday)
The government previously appointed state construction firm PT Adhi Karya to build the LRT, a national strategic project. It planned to use the state budget to finance the project, but lost funding capacity after recent state budget cuts.
Rini said if the House did not approve the PMN, a loan may have to be taken out. (bbn)
