State railway operator KAI hopes to secure additional funds from the government for its businesses next year. (GA Photo)
KAI to Request for More Funds From 2016 State Budget
BY :VANESHA MANUTURI
SEPTEMBER 29, 2015
Jakarta. State railway operator KAI plans to ask the government for another capital injection from the 2016 state budget to support its businesses next year, according to a top company executive.
The company was earmarked to receive up to Rp 2 trillion ($136.3 million) from the government this year under the revised 2015 state budget, but it was later left out in the 2016 draft state budget.
"We're not in line to receive a capital injection from the government yet, but we will try to propose that...We haven't decided on how much we'll need, as we're still assessing the figures. We will announce [the amount] soon," KAI president director Edi Sukmoro told the Jakarta Globe on Tuesday.
According to Edi, the railway operator would need additional funds to prepare for the 125-kilometer light-rail transit project by state contractor Adhi Karya, which will be auctioned next year.
President Joko Widodo is using capital injections to bulk up the capacity of strategic state-owned enterprises in hopes of increasing their involvement in the national development agenda over the next five years.
Some 50 SOEs are slated to receive capital injections from the government in the 2016 state budget draft, totaling to about Rp 39.4 trillion in funds.
This year, the government set aside approximately Rp 65 trillion for SOEs — including KAI and Adhi Karya — in the revised 2015 state budget.