Indonesia Expat

Despite Setbacks, Government Sets Ticket Price for LRT

Jakarta LRT

Though the construction process of the LRT route in Jabodebek (Jakarta, Bogor, Depok, Bekasi) is still ongoing, the local government remains optimistic that the project can be finished in 2019. In the meantime, the government has already set the ticket price for the upcoming public transportation option, which will be Rp.12,000 (US$0.90) per person.

Before the price was set, the Sub-Directorate of Railway Feasibility studied possible prices for the LRT ticket. Other proposed prices were Rp.10,000 (US$0.75) and Rp.15,000 (US$1.12). According to the head of the sub directorate Jumardi, the settled price came only after discussion with the Coordinating Ministry for Maritime Affairs

“We choose this price instead of the other two options with consideration to make people switch their preference to public transportation. But we will study further about the compatibility of the price with PT Kereta Api Indonesia’s business plan, as they are the main investor in the project who will report things to the Ministry of Transportation,” said Jumadi, as quoted by Kompas.

If the tariff is actually implemented, the government will need to give support by subsidizing the operational costs of the LRT. Jumardi stated that based on the Ministry of Transportation’s calculated prediction, the cost of running the route of Cibubur – Cawang – Dukuh Atas will be Rp.40,000 (US$3) per person. This means the government will need to make up the difference.

Currently, the project is having difficulties with funding due to changes in its financial scheme. Previously the facilities of Jabodebek’s LRT were to be funded by the state budget as outlined in Presidential Decree number 65 of 2016. Now, the government will only cover 30 percent of it and the other 70 percent will need to be covered by banks. The total investment of the project itself is around Rp.27 trillion (US$2.03 billion).

LRT Jakarta

As of April, construction is 12 percent done, which includes the construction of the Cibubur – Cawang track (25.4 percent complete), the Cawang – Dukuh Atas track (1.4 percent complete) and the Cawang – Bekasi Timur track (11.9 percent complete).

However, due to a lack of land needed for construction, the project needs to grab some property. The acquisition of an essential 83.6 km of land, which will cost Rp.1.7 trillion (US$128 million), is not completed yet. Regarding the matter, Lembaga Manajemen Aset Nasional (the National Asset Management Agency) has agreed to donate Rp.1 trillion (US$75.3 million) for the acquisition, as requested by the Ministry of Transportation.

See: Jakarta’s MRT Is On Track To Open In 2019

Image credits: SkyscraperCity, Detik

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