The Commission VI of House of Representatives (DPR) had on Wednesday (July 19) approved the government’s proposal to include additional capital injection (PMN) of Rp2 trillion for state railway operator PT Kereta Api Indonesia (KAI) into the revision of state budget for 2017 (APBN-P). The proposed capital injection to KAI (in cash) aims to support funding the construction of infrastructure for the light rail transit (LRT) in Greater Jakarta. This said project will cost Rp27.5 trillion, comprised of cost for railway development (pre-facilities) amounting Rp23.3 trillion and cost of rolling stock facility amounting Rp4 trillion. This project is targeted to finish in 2018. The Government allocates Rp9 trillion (PMN) to fund LRT project while the major Rp18 trillion is funded by banks’ loan.
