Jakarta. Transport Minister Budi Karya Sumadi confirmed on Friday (24/11) that state-owned railway operator Kereta Api Indonesia will continue to invest in the Light Rail Transit project linking Jakarta with its satellite cities.
The transport minister said KAI should form a joint company with state-owned construction company Adhi Karya for the LRT project.
The minister cited a 2017 presidential regulation issued to speed up development on the project which allows KAI to operate, maintain and finance the Jakarta, Bogor, Depok, Tangerang and Bekasi (Jabodetabek) LRT network.
"A partnership between KAI and Adhi Karya will make a lot of things easier, including financing," Budi said in Palembang.
He reiterated the government's support for the project, which the latest forecast shows will cost around Rp 27 trillion ($1.9 billion). Around Rp 3 trillion of that will be spent on trains and maintenance.
If KAI and Adhi Karya team up, they will be able to fork out up to Rp 8 trillion. The remainder is expected to come from a syndicated bank loan.
"The government will support this partnership so the project can be completed on time," the minister said, pointing out that Greater Jakarta desperately needs the LRT as an alternative mass transportation.
Earlier this month, the government gave its permission to Adhi Karya to obtain funding to speed up construction on the project.
The first 43.3 kilometers of the LRT network will include four stations on the Cawang-Cibubur line, seven stations on the Cawang-Kuningan-Dukuh Atas line and five stations on the Cawang-East Bekasi line.
The government wants the project to be ready for the 2018 Asian Games, which will be co-hosted by Jakarta and Palembang in South Sumatra.
The second phase of the development — connecting Cawang to Bogor and possibly to Lippo Group's new megacity development Meikarta in Cikarang, West Java — will start next year.
The Jakarta Globe is affiliated with the Lippo Group.