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Private entity to operate Bali LRT to ease budget: local govt
The arrangement will allow investors to quickly get a return on their investment, the Bali administration has said, adding that this in line with the fact that the project has been fully funded by the private sector from its construction phase.
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Passengers wait for a Greater Jakarta light rail transit (LRT) train at Dukuh Atas Station in Setiabudi, Jakarta, on Dec. 21, 2023. (Antara/Rifqi Raihan Firdaus)
T
he Bali provincial administration will permit a private entity to operate its first light rail transit (LRT) system on the island so as not to burden either the central or regional budgets.
The arrangement will allow investors to quickly get a return on their investment, the Bali administration has said, adding that this in line with the fact that the project has been fully funded by the private sector from its construction phase.
“We understand that the fiscal capacity of the Bali administration is limited. Therefore, the governor and central government are collaborating to maximize the role of private investors in the project,” Bali regional secretary Dewa Made Indra said on Wednesday, as quoted by Kompas.
Read also: Early phase of Bali LRT project to cost $876m, ministry says
Previously, President Joko “Jokowi” Widodo warned local government to exercise caution when building urban public transit networks, such as an LRT or mass rapid transit (MRT).
Jokowi told governors, regents and mayors in the future capital Nusantara on Tuesday that public transit required hefty budgets to operate and it would likely incur operational losses as ticket prices must remain affordable.
The gap then must be covered by subsidies to keep the facility up and running. Instead of relying on central government funding, Jokowi urged local governments to chip in from their own budgets in covering these costs.
