The government rushes to find new financing options for its light rail transit project in the greater Jakarta area, as it becomes clear the Rp 23 trillion ($1.7 billion) development costs are too expensive to be borne by the state budget only.
Up until today, state contractor Adhi Karya has been covering all expanses with its own internal cash.
Finance Minister Sri Mulyani Indrawati said the government will allow a consortium to invest in the project, while the government will provide a guarantee fund.
“We only want to make sure that the project will be completed on time,” Sri Mulyani said.
It also means that the government needs to revise a presidential regulation from 2015, which requires the project to by fully state-funded.
President Joko “Jokowi Widodo” seeks to showcase the LRT in two years, when Indonesia hosts the 2019 Asian Games.
Transportation Minister Budi Kara Sumadi said the LRT is 12-percent complete, while Adhi Karya is expected to finish the elevated track from Cibubur to Cawang in East Jakarta by December 2018.
After that, around May 2019, state railway operator Kereta Api Indonesia and train manufacturer INKA will install the trains.
Another LRT project in Palembang, South Sumatra, is already 35 percent complete and should be ready by June 2018, Budi added.