ASEAN KEY DESTINATIONS
Private lenders partake in Greater Jakarta LRT project
Coordinating Maritime Minister Luhut Pandjaitan has revealed that several private banks have agreed to disburse loans for the Greater Jakarta light rail transit (LRT) project that will link the capital to its neighboring cities in West Java.
The transportation project will link the cities of Jakarta, Bogor, Depok and Bekasi.
He said that among the private lenders that had agreed to take part in the project were Bank Central Asia (BCA), the biggest private bank in terms of assets, and Malaysian-controlled Bank CIMB Niaga.
“With private banks stepping in, the loan proportion from state-owned banks will decline. The composition is not final yet, but this is an indication of a positive lending structure,” Luhut said.
The project is estimated to cost Rp 27 trillion (US$2 billion) with Rp 9 trillion coming from the government in the form of capital injection (PMN), while the remaining Rp 18 trillion is expected to come from bank loans.
Initially, the public transportation project relied on loans from state-owned banks — Bank Negara Indonesia (BNI), Bank Mandiri and Bank Rakyat Indonesia (BRI) — before the private lenders expressed interest in financing the project.
The Transportation Ministry claimed the infrastructure construction of the project had reached 50 percent completion as of last week.
The government aims to see disbursement of the loans in November.
State-owned railway operator PT Kereta Api Indonesia (PT KAI) is acting as a leading company to coordinate the loans, while state-owned construction firm PT Adhi Karya is the developer of the project.
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