PT Kereta Api Indonesia (KAI) has secured a 50-year concession contract from the Government of Indonesia to operate the Jakarta light-rail transit (LRT) system. The contract is part of the new financing scheme. The government will provide a subsidy to KAI to operate the system for 12 years, which will be based on the deficit in the cash flow of the company. KAI will invest in the development of facilities and infrastructure for the IDR27.5-trillion LRT project. KAI will receive IDR9 trillion as state capital, which will include IDR2 trillion from the 2015 state budget. These funds will be used as equity to secure an IDR18.5-trillion loan from state-owned banks.
(1 IDR [Indonesian Rupiah] = 0.00007 USD)