The Jakarta Post
State-owned construction firm PT Waskita Karya is waiting for the payment of Rp 9.1 trillion (US$637 million) for the almost completed light rail transit (LRT) system in South Sumatra’s provincial capital of Palembang.
Waskita corporate secretary Shastia Hadiarti said the government had agreed to disburse the funds for the outstanding payment this year.
Shastia said the contract value of the Palembang LRT project was Rp 10.9 trillion and the company had only received Rp 1.8 trillion from the government so far.
Waskita finance director Tunggul Rajagukguk added that if the government did not fulfil its payment obligation to Waskita, the company would seek alternative funds by selling the receivable from the government through a factoring mechanism.
He noted, however, that the government had not demanded any changes to the agreement. “From the government’s side, there is no change of contract,” he said, as reported by tempo.co.
The 23.4-kilometer LRT line is aimed at supporting the 2018 Asian Games, which Palembang will host along with Jakarta.
The LRT line will connect Sultan Mahmud Badaruddin II International Airport and the Jakabaring sports complex, with 13 stations along the route. (bbn)