Ignasius Jonan, president-director of state-owned rail operator PT Kereta Api Indonesia (KAI), said the company was facing tough challenges from central government policy. The policy is also affecting the company’s plan to revamp the existing railway system in Greater Jakarta, said Jonan.
Parts of the railway set for elevation included major stations for passengers travelling to and from the suburbs on what is commonly known as the “loop line”.
“We secured a presidential decree in 2011 to develop the airport link and the commuter line, but now we have had to halt our development plan and wait for a new design, as the National Development Planning Board and the Transportation Ministry have decided to start construction of the elevated loop line next year,” Jonan said. “They made this decision without involving us, despite the fact that it has a huge impact on our planned projects.”
Deputy Transportation Minister Bambang Susantono said that work on the mega loop-line elevated railway, at an estimated cost of 9.5 trillion rupiah (about Bt26.5 billion), would begin in 2014.
The government has allocated 700 billion rupiah from the 2014 state budget for this project. Jonan, however, said he suspected powerful lobbying by the automotive industry was behind the elevated railway project, adding that it would not accelerate the pace or headway of trains.
“It will, however, reduce traffic congestion in the capital city,” he said.