State-owned infrastructure financing company PT Sarana Multi Infrastruktur (SMI) is seeking Rp 3.6 trillion (US$150 million) in loans to fund its participation in the construction of Jakarta light rail transit (LRT).
The total project costs amount to around Rp 27 trillion, consisting of Rp 23.3 trillion for railway infrastructure and the remaining Rp 3.7 trillion for rolling stock.
With the government contributing Rp 9 trillion, the remaining Rp 18 trillion must be obtained through loans. SMI may contribute about 10 to 20 percent of the Rp 18 trillion loan portion,” SMI president director Emma Sri Martini said during the company’s anniversary event in Jakarta on Wednesday.
The company has given itself the task of coordinating with state-owned banks to obtain the remaining necessary loans. Currently, the banks are still in wait-and-see mode in anticipation for the new feasibility study of the project.
Initially, state-owned construction company PT Adhi Karya was in charge of the project when the government allocated the funds for the project in the state budget.
But the allocation was scrapped in a round of cuts designed to reduce last year’s budget deficit. Because Adhi Karya did not have enough money to invest, its role as a leader of the project was replaced by railway operator PT Kereta Api Indonesia (PT KAI).
The government contributed Rp 9 trillion as a state capital injection (PMN). Adhi Karya already received Rp 1.4 trillion last year, meanwhile, PT KAI received a Rp 2 trillion capital injection last year and will receive an additional Rp 5.6 trillion.