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SOEs ministry confirms Rini's letter on LRT project
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State-owned Enterprises Minister Rini Soemarno. (JP/Wendra Ajistyatama)
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tate-owned Enterprises Minister Rini Soemarno wants a review over the role of state-owned railway operator PT Kereta Api Indonesia (KAI) in the Greater Jakarta light rail transit (LRT Jabodetabek) project, following the announcement of the increase in the project’s cost.
Currently, KAI acts as the main investor in the project, where costs have increased to Rp 31 trillion (US$2.29 billion) from the initial cost of Rp 26.7 trillion, after an agreement at a meeting led by Maritime Affairs Coordinating Minister Luhut Binsar Panjaitan on Nov. 10.
In her letter to Finance Minister Sri Mulyani Indrawati and Transportation Minister Budi Karya Sumadi, Rini expressed her concern about KAI's financial health if the company had to be responsible for financing the LRT project.
Read also: Cost of Greater Jakarta LRT project swells to Rp 31 trillionSOEs Ministry’s financial service and banking affairs deputy Gatot Trihargo confirmed Rini’s letter, stressing that the ministry was concerned about KAI's financial balance if it continued in its current role.
“It might reduce KAI’s capacity to support other [government] programs, such as revitalizing [other] rail tracks,” said Gatot as reported by kontan.co.id.
Meanwhile, Rini’s letter was blamed for state-owned construction firm Adhi Karya's drop in share prices by 7.8 percent on Nov. 23 because investors worried about the fate of the LRT project.
Previously, Budi explained the increase in the LRT's project cost was because of changes in signaling technology, namely from fixed block signaling to moving block signaling system. (bbn)
