PT Waskita Karya to believe Pelembang LRT Project is completed on schedule
JAKARTA—PT Waskita Karya is optimistic to complete the project light rail transit (LRT) in Palembang, South Sumatra in 2.5 years, as the construction process that has already begun earlier this year.
President Director of PT Waskita Karya Muhammad Choliq said, all previous technical preparation inhibits the physical realization of this project is fully completed. Thus, the construction had already started in the field.
“Exactly, I don’t have idea how much percent the progress is, but we have already started. The entire technical preparations have been accomplished,” He said by telephone on Wednesday (17/02/2016).
Choliq mentioned the construction of the project is carried out without the groundbreaking ceremony or inaugural pole erection. The project was accelerated in order to pursue the operation target before an Asean Games that will be begun in August 2018.
Initially, groundbreaking was scheduled in November 2015, but was not realized due to a number of technical obstacles. Currently, technical specifications and construction cost budget has been finalized. Defining of the trace has been also conducted which it is approximately 24.5 km with 13 stations and two corridors, each 14.5 km and 10 km respectively.
Palembang LRT project is a project that will be funded by the central government through the state budget (APBN) of Ministry of Transportation. PT Waskita Karya has been awarded to develop the project as a contractor.
This project is estimated to require an investment worth Rp 7.2 trillion. For the initial stage in this year, PT Waskita Karya will rely on the company’s internal funds. Furthermore, the Ministry of Transportation will replace and allocate the budget to finance the project in the state budget (APBN) 2017 and 2018.
South Sumatra Governor Alex Noerdin stated that the provincial government gave its full support for the PT Waskita Karya to speed up the realization of the project. He requested that the project is completed and operated at the latest by June 2018.
In his opinion, the project is not only important to support the Asian Games, but also in order to unravel the problem of transportation in Palembang.
Currently, the implementation of LRT is very urgent to be introduced as a modern mass transportation in Palembang since the volume of the traffic has been rapidly increasing. Further anticipation is supposed to be conducted. Otherwise, more congestion will become uncontrollable for several next year.
In addition to the LRT project, Indralaya toll road and Musi IV Bridge are currently built in Palembang. New infrastructure growth has been placed by government as an importunate necessity.
PT Waskita Karya has been awarded as a direct assignment for the construction of the project in accordance to government provision through Presidential Decree No. 116/2015 on the Acceleration of the Implementation of LRT in South Sumatra province. President Joko Widodo has signed the regulation on October 20, 2015.
By looking at these rules, Waskita is appointed to build the LRT infrastructure including railway lines, construction of flyovers, stations and operating facilities. They are required to optimize the utilization of local components in the project.
Apart from the above scope, the government is also entitled to assign other related that will be regulated by the Regulation of the Minister of Transportation. In the implementation of development, Waskita may be involved and cooperated with other business entities.
Budgetary resources for the implementation of the assignment can be derived from the PMN or other funding in accordance with the law. Article 7 of the regulation states, the government made a payment for the transfer of infrastructure for each stage of development that has already been built by PT Waskita Karya.
Presidential regulation also confirmed, in order to support the implementation of the assignment, the government and local governments provide ease of licensing, licensing fee waivers and tax facilities which are in line with the provisions of the legislation to PT Waskita Karya.