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Jakarta Post

Government pegs PT KAI for airport railway development

Jakarta   /   Sat, July 16 2011   /  01:35 pm

The government has assigned state-owned railway operator PT Kereta Api Indonesia (KAI) to establish a railway that will connect Manggarai station in South Jakarta to Soekarno-Hatta International Airport via Tangerang regency in a Rp 2.25 trillion (US$263.2 million) project.

Deputy Transportation Minister Bambang Susantono said on Friday that the decision was made on the grounds that PT KAI was the only company in Indonesia with adequate qualifications for such an undertaking.

“KAI is the only company in Indonesia competent in the many aspects of railway operations such as human resources and railway signaling systems,” Bambang told reporters after a meeting to finalize a presidential regulation on public-private partnerships at the Office of the Coordinating Economic Minister in Central Jakarta.

Bambang said that the railway project would involve developing a 7-...