“It [the disbursement of the loan] depends on an invoice from Adhi Karya,” KAI finance director Didiek Hartantyo Didiek said in Jakarta on Monday.

Deputy Finance Minister Mardiasmo added that the Transportation Ministry, KAI and Adhi Karya were still negotiating for the interest rates of the loans, adding that he hoped negotiations would be concluded by the end of the year.

Mardiasmo also said that the government would issue Government Regulation (PP) for the disbursement of the state-capital injection (PMN) for the LRT project this month. PT KAI has so far raised Rp 4 trillion in equity, which was sourced from the revised state budget (APBN-P) and re-allocation of funds from the railway operator’s trans-Sumatra project, said Didiek.

A number of banks -- namely Bank Mandiri, Bank Negara Indonesia (BNI), Bank Central Asia, Malaysian-controlled Bank CIMB Niaga and state-owned financing company PT Sarana Multi Infrastruktur -- have committed themselves to provide syndicated loans for the project.

To earn Rp 18.5 trillion syndicated loans from the banks to fund the Rp 27.5 trillion-project, KAI is required to have equity worth Rp 9 trillion. Aside from that, the government would inject Rp 3.6 trillion in capital (PMN) next year and another Rp 1.4 trillion through Adhi Karya. (ags)

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