JAKARTA (TheInsiderStories) – Indonesian state-owned railway operator PT Kereta Api Indonesia (KAI) will disburse additional funds of Rp4.2 trillion (US$300 million) for the Greater Jakarta light rail transit (LRT) projects. The funds are expected to accelerate project completion, including the construction of an LRT depot in East Bekasi, West Java.
“With these additional funds, we hope that the LRT project will be completed by the end of 2021. The funds will be used for depot construction and accelerated project completion,” Deputy Minister of State-Owned Enterprises Kartika Wirjoatmodjo told reporters in Jakarta on Monday (02/03).
Wirjoatmodjo explained the funds are included in the KAI dependents. The train operator is known to bear 60 percent of the funding requirements for the whole LRT development, which amounts to Rp22.8 trillion. While the remaining 30 percent is borne by publicly listed state-owned builder PT Adhi Karya Tbk (IDX: ADHI), and 10 percent is funded by the government.
The government initially target the projects will be fully operational in July 2021, but Adhi Karya’ Managing Director Budi Harto said the completion will be delayed by December 2021 as the construction reached 70 percent now. The issue of land acquisition is still a constraint to development, he added.
“There were still 49 plots of land that had not yet been acquired for the depot in East Bekasi. We think it will be finished by the end of this month,” Harto said.
The company, he said, targets the LRT development to reach 82 percent by the end of this year so that it can start operating at the end of 2021 and the first LRT train has been placed at Harjamukti Station in Cibubur, East Jakarta
The Greater Jakarta LRT, not to be confused with LRT Jakarta that operates in the eastern part of the capital, has a total of three construction stages. Progress for the Cawang-Cibubur route is at 85.7 percent, while the tracks connecting Cawang to Dukuh Atas in Central Jakarta and Cawang to East Bekasi in West Java have progressed 56.1 percent and 59.5 percent, respectively, Harto stated.
The first phase is 43.3 kilometers long and costs Rp 22.8 trillion has been built since Sept. 1, 2015. KAI has tested the locomotives and carriages made by PT Industri Kereta Api (INKA). If the train ready to operate, then the trials will be conducted in June 2021, Harto said.
In addition to the LRT projects, currently, Adhi Karya is conducting a study to create a loop line (elevated railway) around the Jakarta region to reduce the congestion between the road and the train door. The elevated railway is planned to be built 20 kilometers with an estimated investment Rp15 trillion.
“We have obtained permission from the Governor of Jakarta and PT Jaya Construction (Jakon) to study the project,” said the CEO.
Another project that will be developed is a transit-oriented development (TOD). This year, Adhi Karya plans to build 18 TOD along the LRT lines. The project is planned to be carried out by its subsidiary PT Adhi Commuter Property (ACP). The unit has been injected with an initial capital Rp2 trillion.
These investments will be funded from various sources such as the establishment of equity funds, bond issuance at the end of this year, list it subsidiaries shares and a capital injection from the government. ACP planned to go IPO in the first quarter of this year.
Written by Lexy Nantu, Email: firstname.lastname@example.org