Government Discusses Capital Injection for PT KAI
Wednesday, 28 February, 2007 | 16:15 WIB

TEMPO Interactive, Jakarta: PT Kereta Api Indonesia (the Indonesian Railway Company) is short of facilities and infrastructure maintenance funds amounting to Rp1.4 trillion per year.

According to Hatta Radjasa, Transportation Minister, these maintenance funds are very important in order to improve the security and safety of journeys by train.

Maintenance covers infrastructure construction, replacement of old rails and sleeper, and also carriage as well as locomotive upgrading.

“This lack of maintenance funds must be resolved,” Hatta told reporters during a visit to Cirebon train station with Vice President Jusuf Kalla, Wednesday (28/2).

Every year PT KAI needs maintenance funds totaling Rp2.2 trillion, but the available funds are only Rp800 billion.

During a transportation sector meeting on the presidential train on Wednesday, Hatta talked about the option of injecting capital funds into PT KAI to cover these needs.

This option is one alternative because this state-owned railway company’s revenues are insufficient for the maintenance costs.

However, the government is still discussing the source of funds.

Oktamandjaya Wiguna