Daily Business Briefs – Dec. 21

JAKARTA (TheInsiderStories) – Good morning. Followings are some relevant news that might help your business decisions today:

Kertajati airport, AP II to sign agreement later this month

PT Bandara Internasional Jawa Barat (BIJB), owner of under-construction Kertajati airport, and state-owned airport operator PT Angkasa Pura II (AP II) will sign an agreement on the operation of the airport in the West Java town of Majalengka on Dec. 27.

BIJB president director Virda Dimas Ekaputra said on Monday the agreement had to be made immediately as it related to the disbursement of a loan for finalizing the construction of the planned international airport, The Jakarta Post reported.

“Out of Rp 906 billion [US$66.7 million] of the loan, Rp 650 billion has been disbursed. The remaining Rp 256 billion is expected to be disbursed in January,” said Virda, referring from the loan from a syndication of seven sharia banks.

President Widodo to Launch Airport Train on Jan. 2
President Joko Widodo is scheduled to inaugurate the operation of the newly constructed airport railway service which will link Soekarno-Hatta International Airport in Tangerang, Baten to the inner Jakarta on Jan. 2. “The operation of the airport train will be launched by President Jokowi on Jan. 2, 2018,” Transportation Minister Budi Karya Sumadi said in Jakarta on Tuesday.

He said state-owned railway operator PT Kereta Api Indonesia (KAI) would be fully in charge of the airport train operation, including determining the price of the tickets. Previously, he said that fares for the airport train would be set at around Rp 70,000 (US$5.16) to Rp 80,000.

Government to Subsidize LRT Fares for 12 Years
Transportation Minister Budi Karya Sumadi has said that the government will subsidize passenger fares on the light rail transit (LRT) commuter service for 12 years, so the new public transportation will be affordable to all commuters in Greater Jakarta.

The government will allocate about Rp 14 trillion (US$980 million) toward the LRT fare subsidy so ticket prices would be set at Rp 12,000, the minister said in Jakarta on Tuesday. He added that the unsubsidized economy fare would be at about Rp 24,000.

On Tuesday, the Transportation Ministry signed an agreement with state-owned railway operator PT Kereta Api Indonesia (KAI) to grant a 50-year concession to KAI for managing the LRT, which is still under construction. (*)