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KAI projects Greater Jakarta LRT will break even in 13 years
State-owned railway company KAI projects Greater Jakarta LRT will reach breakeven in 13 years.
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A Greater Jakarta light rail transit (LRT) train. (Antara/HO-Biro Komunikasi dan Informasi Publik (BKIP) Kemenhub)
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tate-owned railway company Kereta Api Indonesia (KAI) projects the newly built Greater Jakarta light rail transit (LRT) will break even 13 years after it started operations, according to the company’s Greater Jakarta LRT division head Mochamad Purnomosidi.
The estimates were based on the assumption that the fare would hover at Rp 25,000 (US$1.67), which is the price for the longest possible ride on the train, he said.
However, he noted that the estimated time for the project to reach breakeven will depend on the public's purchasing power for the LRT fare and the amount of public service obligation (PSO) deployed by the government.
“If, let's say, the government later provides a high subsidy, it means the fare could get lower,” Purnomo said on Monday, as quoted from Kompas.com.
Read also: Govt to extend Greater Jakarta LRT to Bogor, Karawang
He added, if the public’s willingness to pay increases over time, then some of the subsidy could be used to speed up the return on investment.
The Transportation Ministry decided on Tuesday that the Greater Jakarta LRT fare would stay at Rp 5,000 for the first kilometer, increasing by Rp 700 for every additional km travelled.
