Three government priority projects next year are LRT (Light Rail Transit), MRT (Mass Rapid Transit) and train as fast as Jakarta – Surabaya.
The Ministry of Transportation will use more than a third of its budget next year to finance rail-related projects. Therefore, this rail-based mode of transportation is predicted to be more widely used by the people.
Railway requires the most budget, such as LRT (Light Rail Transit), MRT(Mass Rapid Transit, and facilities that support it, “said Minister of Transportation, Budi Karya Sumadi during budget discussions with Commission V, in the People’s Representative Council building.
Budi mentioned that Rp 17.5 trillion from the indicative ceiling of the Ministry of Transportation amounting to Rp 48.486 trillion will be spent through the Directorate General of Railways.
Budi also stressed that the government will complete the semi-fast Jakarta – Surabaya. He targets a 160-kilometer-per-hour railway project to be completed by 2020.
According to Budi, the construction of the train as fast as Jakarta – Surabaya is the direction of President Joko Widodo (Jokowi). Currently, Budi is awaiting the completion of design from the Agency for Assessment and Application of Technology (BPPT) and Directorate General of Railways.
He claims this project can be run as soon as it does not require land acquisition. “Because it uses the existing track, so there is no additional land acquisition.
Furthermore, the rush of semiconductor funding, according to Budi, will be financed by investors through business to business lending. He said that government is looking for ways to meet the funding.
In addition, to financing various railway projects, the Ministry of Transportation’s budget is planned to be used for four main areas: improving transport safety and security, improving service quality, capacity building, and regulatory governance.