Wow, DKI Pemprov Spends More Expensive Budget Than Private In The Pulogebang-Joglo LRT PPP Project

The atmosphere of the Jabodebek Light Rail Transit (LRT) construction project on Jalan Rasuna Said / Antara

JAKARTA - The DKI Provincial Government explained the financing scheme for the construction of the LRT route for the Pulogebang-Joglo route in a joint meeting with Commission B DRPD DKI. The construction cost Rp. 22.8 trillion.

In fact, development in collaboration with the private sector, namely Pembangunan Jaya, the DKI Pemprov issued a larger budget.

The scheme used to build the Pulogebang-Joglo LRT is a cooperation between the local government and business entities (KPDBU) initiated by the private sector.

Member of Commission B DPRD DKI from the PSI faction Eneng Malianasari admitted that he was surprised that in this collaboration, the DKI Jakarta Provincial Government would spend IDR 18.9 trillion (83 percent) to build infrastructure. Meanwhile, Pembangunan Jaya only spent Rp. 3.9 trillion (17 percent) for the procurement of facilities.

"The Indonesian Solidarity Party is of the opinion that this project is not feasible, makes no sense, and violates the rules," Eneng said in his statement, Tuesday, May 4.

This is because the PPP scheme with the private sector is carried out because of the limited budget the government has in building infrastructure. However, it turns out that the DKI Pemprov has incurred a higher cost.

"So far, the DKI Provincial Government has said that it lacks funds, so the construction of the Pulogebang-Joglo LRT uses the PPP scheme. If you really don't have money, why spend Rp. 18.9 trillion? I ask the DKI Pemprov to be honest, "said Eneng.

Eneng also regretted that the DKI Provincial Government had never coordinated with the DPRD to discuss the Pulogebang-Joglo LRT project, even though there were several irregularities.

One of them, the Rp 18.9 trillion budget violates the regulations related to government cooperation with business entities (KPDBU) in the provision of infrastructure, namely Presidential Decree Number 38 of 2015 and Pergub Number 22 of 2018.

In Presidential Decree Number 38 of 2015 article 14 paragraph (3) letter c, the business entity that proposes the initiative has sufficient financial capacity to finance the implementation of infrastructure provision.

Meanwhile, Pergub 22 of 2018 article 50 paragraph (3) letter b states that the criteria for a PPP project initiated by a business entity do not require government support in the form of fiscal contributions in the form of finance.

"If you follow Perpres 38 of 2015 and Pergub 22 of 2018, all investment costs for infrastructure and facilities must be financed by the private sector. The DKI Provincial Government is not allowed to issue a budget for KPDBU projects initiated by the private sector (unsolicited). So, it can be concluded that the Pulogebang-Joglo LRT project is not feasible to work on, "he explained.

It is known, this LRT project will be built along 32.15 kilometers consisting of 26 stations. Projected passengers of 172,500 people per day in 2025 and an average fare per passenger of IDR 12,343. The concession period is 33.5 years, consisting of a construction period of 3.5 years and a duration of operation of 30 years.