President Jokowi Appoints Waskita Karya to Build LRT in Palembang
President Jokowi Appoints Waskita Karya to Build LRT in Palembang
With consideration to improve transportation service in order to support the development in South Sumatra Province and the organization of Asian Games in 2018, the Government feels the urge to accelerate Light Rail Transit (LRT) project in South Sumatra Province. Therefore, on 20 October 2015, President Joko Jokowi Widodo signed a Presidential Regulation No. 116 of 2015 on the Acceleration of Light Rail Transit (LRT) Implementation in South Sumatra Province.
The implementation of LRT covers the route: Sultan Mahmud Badaruddin II International Airport- Palembang Grand Mosque- Jakabaring Sport City. Beside that, the Government may set another service routes as well, and it will be regulated in a Minister of Transportation Regulation.
According to the Presidential Regulation, the Government assigned PT Waskita Karya (Persero) Tbk. to build the infrastructures of the intended LRT, that covers: a. track, including elevated line construction; b. station; and operational facilities.
The construction of LRT shall be carried out by constructing service route infrastructures gradually by PT Waskita Karya (Persero) Tbk., Article 2 paragraph (2) of the Presidential Regulation Number 116 of 2015 says.
In the construction of LRT infrastructures, PT Waskita Karya (Persero) Tbk. may cooperate with other business entities.
The step of LRT construction, according to the Presidential Regulation, shall be set forth in the agreement between the Ministry of Transportation and PT Waskita Karya (Persero) Tbk.
The whole construction process of the service route infrastructures shall be finished not exceeding June 2018, Article 2 paragraph (5) of the Presidential Regulation says.
The Presidential Regulation asserted that in the implementation, PT Waskita Karya (Persero) Tbk. shall optimize the utilization of Indonesias domestic components.
To improve the quality of PT Waskita Karya (Persero) Tbk. assignment, according to the Presidential Regulation, Ministry of Transportation shall consult with internationally qualified supervisor to supervise the LRT infrastructures construction which procurement is sourced from direct appointment.
The budget for the LRT construction in Palembang sourced from: a. State Capital Participation; and/or b. other funding in accordance with the provisions of laws and regulations.
The Government shall pay for infrastructures diversion of every construction step that completed by PT Waskita Karya (Persero) Tbk., Article 7 of the Presidential Regulation says.
Cost Relief
The Presidential Regulation asserted that in the implementation of PT Waskita Karya (Persero) Tbk. assignment, the Government and Regional Government provide amenity on permit, cost relief, free of cost permit, as well as taxation and customs facilities according to the provisions of laws and regulations.
The Presidential Regulation shall take effect from the date of its promulgation, Article 18 of the Presidential Regulation Number 116 of 2015 which is promulgated by Minister of Law and Human Rights Yasonna H. Laoly on 21 October 2015 says.(Pusdatin/ES) (RAS/MMB/YM/Naster)
