President Joko Widodo Revises Presidential Regulation Number 98 of 2015

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 15 Agustus 2016
Category: News
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2016_08_15 MiaIn order to accelerate the project of integrated Light Rail Transit (LRT) in Jakarta, Bogor, Depok, and Bekasi (Jabodebe), the Government considered that the regulation on the construction of the LRT’s infrastructure must be revised.

Therefore, on 29 Juli 2016, President Joko Widodo signed Presidential Regulation Number 65 of 2016 on the Revision of Presidential Regulation Number 98 of 2015 on the Acceleration of the Implementation of Integrated Light Rail Transit in Jakarta, Bogor, Depok, and Bekasi areas.

The Presidential Regulation mentioned that in the agreement between the Ministry of Transportation and PT Adhi Karya (Persero) Tbk. on the stages of the construction of the integrated LRT’s infrastructure, PT Adhi Karya can still continue its work according to technical approval from and supervised by Ministry of Transportation.

According to this Regulation, in order to carry out this project, the Minister of Transportation must set up a design criteria and/or technical specification of the construction of the facilities 30 (thirty) days in maximum after the Regulation is enacted.

After that, PT Adhi Karya (Persero) Tbk. shall submit technical documents as well as budget estimation documents, that drawn up based on the design criteria and/or technical specification, to the Minister of Transportation in 30 (thirty) days at the latest. Then, the documents would go through a technical evaluation and the price would be checked whether it is reasonable or not.

The Minister of Transportation then gives approval on these documents based on the results of evaluation in 30 (thirty) days at the latest after the documents are received.

“Minister of Transportation shall sign an agreement between the Ministry of Transportation and PT Adhi Karya (Persero) Tbk. in 30 (thirty) days in maximum after the approval over the technical documents and budget estimation documents of the construction of the integrated Light Rail Transit’s infrastructure,” Article 3 paragraph (4) of the Presidential Regulation says.

The Government pays for transfer of facilities for every stage of construction of every Service Line which construction has been completed by PT Adhi Karya (Persero) Tbk. Regarding the payment, Minister of Transportation allocates the fund in Ministry of Transportation Budget. Based on the Regulation, the Minister of Finance shall give approval on multiyears contract proposed by Minister of Transportation.

“The period of approval of multiyears contract given by Minister of Finance as intended by paragraph (4), shall start since PT Adhi Karya (Persero) Tbk. carries out its duties,” Article 7 paragraph (4) says.

The Regulation also emphasized that to carry out the duties of PT Adhi Karya (Persero) Tbk., Governor of DKI Jakarta, Governor of West Java, Regent of Bekasi, Mayor of Bekasi, Mayor of Depok, Regent of Bogor, and Mayor of Bogor should:
1. make an adjustment of Regional Landscaping Plan and Service Line as intended by Article 1 paragraph (2), based on the provisions of laws and regulations on landscaping sector.
2. give approval to use the land belongs to the regions as well as the air space in the construction of the integrated LRT’s infrastructure in each region based on the provisions of laws and regulations; and
3. give approval to use the land belongs to the regions as well as the air space in the construction of station and depot in each region based on the provisions of laws and regulations.

In order to accelerate the utilization of the construction of the infrastructure, the Government assigns PT Kereta Api Indonesia (Persero) to: a. administer the facilities, such as: procurement, operation, maintenance, and development; b. administer the automatic fare collection; and c. administer operation and maintenance of the facilities.

These duties can be carried out in parallel with the construction of integrated LRT. “In carrying the duties, PT Kereta Api Indonesia (Persero) can cooperate with other business entities,” Article 16 paragraph (3) of Presidential Regulation Number 65 of 2016 says.

Meanwhile, regarding the financing, the fund comes from State Capital Participation and/or other financings based on the provisions of laws and regulations.

This Government Regulation also emphasized that, to make the tarriff affordable, the Regional Government of DKI Jakarta can give subsidy to support its Public Services Obligation.

“This Presidential Regulation shall apply as of the date of its enactment,” says Article II Presidential Regulation Number 65 of 2016 promulgated by Minister of Law and Human Rights Yasonna H. Laoly on 3 August 2016. (Pusdatin/ES)(MMB/YM/Naster)

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