Indonesia Allocates Rp 4.3 Trillion for Completion of Fast Train

jpnn.com, JAKARTA - The government will soon disburse a budget to PT Kereta Api Indonesia (KAI) to assist in the completion of the Jakarta-Bandung high-speed rail project (KCJB).

According to Finance Minister Sri Mulyani, the amount to be injected is Rp 4.3 trillion.

The budget injection is referred to as the base equity.

"This project was originally a business-to-business (B2B) project and should have been fulfilled by SOEs," she said.

"However, because the KAI has been affected by Covid-19 and has experienced a decline in the number of passengers, the SOEs are not able to provide the base equity."

She stated this in a joint working meeting of the Ministry of Finance with Commission XI of the House of Representatives (DPR) in Jakarta, Monday (8/11).

The budget to be disbursed comes from the 2021 excess budget balance (SAL) worth Rp 20.1 trillion.

However, the State Treasurer emphasized that the funds had not been injected into PT KAI, considering that the Ministry of SOEs was still negotiating with the KCJB consortium regarding the completion of the project.