Other state lenders that will take part in financing the transportation project are Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI) and financial institution PT Sarana Multi Infrastruktur (SMI).

“Each bank would contribute between Rp 2 trillion and Rp 5 trillion. We [Bank Mandiri] have prepared Rp 4 trillion,” said Bank Mandiri president director Kartika Wirjoatmodjo as reported by tribunnews.com on Sunday, adding that the private lenders were also invited to take part in the project.

(Read also: LRT Jakarta progress reaches 15 percent: Developer)

Syndicated loans from the banks are expected to reach Rp 18 trillion from the total LRT project cost of Rp 23.3 trillion. The state budget will cover the remaining costs.

Kartika, however, said the total cost of the project was not final. The latest calculations show that the cost could reach up to Rp 27 trillion.

 Interest rates of the loan are still being negotiated, he said. (bbn)

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