Rp 1.7 Trillion to be added to the fund: Jabodebek LRT tariff expected to be Rp 12 thousand

Dana akan ditambah RP 1,7 triliun: Tarif LRT Jabodetabek ditaksir Rp 12 Ribu

Investor Daily, 26 April, 2017
By Thresa Sandra Desfika

JAKARTA - The government has made an estimate that the Jabodebek [Jakarta, Bogor, Depok, Bekasi] light rail transit [LRT] tariff will be Rp 12 thousand per passenger. This tariff will be made a reference in the calculation of the Rp 23 trillion-worth project’s financial feasibility.

Head of Sub-Directorate of Railway Viability of Directorate General of Railways of the Ministry of Transportation (Kemenhub), Jumardi, explained that the ticket price has already taken into account the public service obligation (PSO) component that the central government or the Provincial Government of Special Capital Territory of Jakarta (DKI Jakarta) can later prepare.

“In fact, there were three tariffs being assessed, namely Rp 10,000, Rp 12,000 and Rp 15,000. However, it was decided in a joint meeting at the Coordinating Ministry for Maritime Affairs that, presently, the Rp 12,000 option becomes the reference,” explained Jumardi in Jakarta, recently.

Nevertheless, he said further, the tariff determination could still change later. This is because PT KAI will submit an investment proposal that will include the company’s business plan in developing the Jabodebek LRT. When Kemenhub has received the documents, the regulator will evaluate and subsequently determine the suitable tariff amount and concession period.

Further, said Jumardi, the government needs to prepare PSO in anticipation of the LRT operations, in order to divert the mobility of the people from private vehicles to the use of LRT as a public transport mode. “The initial calculation of the tariff from Cibubur to Cawang is Rp 40,000 per person, so that subsidy is needed to make it cheaper,” he said.

Earlier, the central government would set the PSO points to be implemented by DKI Jakarta Provincial Government in administering the Jabodebek LRT. “Yes, they [DKI Jakarta Provincial Government] can give the PSO because this was the promise of the then governor,” said Director General of Railways of Kemenhub, Prasetyo Boeditjahjono.

Further, said Prasetyo, his ministry’s consideration to mention the obligation of DKI Provincial Government in the revision of the Perpres [Presidential Regulation] is derived from the fact that, of the three service routes in the first phase of the Jabodebek LRT, 70 percent is located within the province’s territory. “So, it is proper for DKI Jakarta Province to give a big portion, compared to the others,” he explained.

However, the amount of PSO to be assumed by DKI Provincial Government is not yet specified in the Perpres revision. The amount will be calculated further in due course. Meanwhile, the possible participation of West Java Provincial Government to contribute to the PSO will be assessed further. The province will also be traversed by the first phase of Jabodebek LRT.

“Other local governments are not yet mentioned in the Perpres revision. After the revised Perpres is issued, perhaps this matter will be taken into consideration. It will be better to have a joint effort and DKI will still be there,” said Prasetyo.

Prasetyo added that the central government also plans to prepare a budget to support the operation of the first phase of Jabodebek LRT. The support can be provided via PSO or operational subsidy. However, this will be decided later.

According to him, the LRT operation needs the PSO or subsidy support in order to attract passengers. If no support is given, the ticket price can reach Rp 50,000 per passenger. Meanwhile, the government is seeking to limit the tariff to be not more than Rp 10,000 per passenger.

Meanwhile, the government still needs to allocate land acquisition funds of about Rp 1.7 trillion for the first phase LRT infrastructure development. The land to be acquired involves some 10 hectares in East Bekasi for purposes of a depot and in several points of the Rp 23 trillion-worth LRT tracks.