Acting Governor Of West Java Calls The Ministry Of Finance Agreeing To The Greater Bandung LRT Project

BANDUNG - Acting Governor of West Java Bey Kalioni Machmudin said the Ministry of Finance (Kemenkeu) had in principle approved the Bandung Raya Light Rail Transit (LRT) project and only had to ensure the stages to be carried out.

Bey said the Ministry of Finance and BUMN PT Sarana Multi Infrastruktur (SMI) considered this project interesting if offered to investors.

"This is a form that has generated a lot of interest from investors. Together with PT SMI, the Ministry of Finance immediately compiled the package offered," said Bey in Bandung, West Java, as reported by ANTARA, Monday, February 19.

Bey explained that the West Java Provincial Government and the Ministry of Finance reached an agreement regarding the plan to build the Greater Bandung LRT, after on Monday (12/2) his party met with one of the directors at the Ministry of Finance to discuss the progress of the project.

During the meeting, the Ministry of Finance also approved that the corridors built were not only North-South (Siliwangi-Leuwipanjang Agency) but also those that stretched between the West-East (Leuwipanjang-Tegalluar) through the government's cooperation scheme with business entities (PPP).

However, Bey said that there was no certainty that the state budget financing would be earmarked for LRT carriages or construction financing.

In addition, although the target for laying the first stone is still unclear, Bey assessed that the meeting would at least provide certainty on the fate of the mass transportation project.

"I want (groundbreaking) this year, but what will happen later. The important thing is there is certainty first. Later, for example, next year, only the elected governor will continue because this is very necessary," he said.

Based on a World Bank study of the Greater Bandung LRT Project disclosed by West Java Secretary Taufiq Budi Santoso, the Babakan Siliwangi-Leuwipanjang corridor requires the construction costs of up to IDR 10 trillion.

If the two corridors are built with the same distance assumption, it will double as much.

"This means that approximately Rp. 20 trillion does not include the cost of procuring transportation modes, trains, then also operational costs. If with land, it is almost Rp. 30 trillion," said Taufiq on Wednesday (4/10/2023).

According to him, because the land acquisition scheme is certain to cost a lot of money, his party plans to maximize the local and central government lands with the aim of reducing costs that must be incurred.