KAI obtains Rp 2T capital injection from state for LRT project
20 Jul 2017 12:32:25
thejakartapost.com
State-owned railway operator PT Kereta Api Indonesia (KAI) has finally secured a Rp 2 trillion (US$150.2 million) capital injection (PMN) from the state to fund the construction of a light rail transit (LRT) system in Greater Jakarta.
On Wednesday evening, the House of Representatives approved of the additional injection to be sourced from the 2017 revised budget, as well as the reallocation of a similar type of funds the firm obtained in 2015 for the LRT project.
Earlier, the latter was allocated for KAI’s trans-Sumatra railway project.
“[Now] we can start processing [the loan] from the banks, so the project won’t stop,” KAI president director Edi Sukmoro said after the meeting.
To fund the Rp 27.5 trillion project, the railway firm required an estimated Rp 9 trillion in equity from the state to allow it access to a Rp 18.5 trillion syndicated loan from the banks.
Read full story: thejakartapost.com
