Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Palembang LRT contractor waits for Rp 9.1t payment from government

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, February 19, 2018   /   04:57 pm
Palembang LRT contractor waits for Rp 9.1t payment from government Workers construct a light rail transit (LRT) station in Palembang, South Sumatra. The Palembang LRT project includes 13 stations. (Antara/ Feny selly)

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

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)