JAKARTA. State-owned railway operator PT Kereta Api Indonesia (KAI) has decided on Rp 12,000 for the fare on light rail transit (LRT) lines in Greater Jakarta.

“We believe that Rp 12,000 is an affordable fare for people,” PT KAI president director Edy Sukmoro said as reported by kontan.co on Thursday.

The fare was decided based on the following assumptions: interest rates at 7 percent, 116,000 passengers per day, 20 years of loan tenor, an 8.6 percent internal rate return, Rp 7.6 trillion capital injection from state funds, a Rp 1.4 trillion capital injection by Adhi Karya as the developer and Rp 15 trillion in subsidies from the government.

“It is also with the assumption that the number of passengers and the fare rate will grow at 5 percent annually,” he added.

The LRT construction is set to run in two phases.

The first phase will connect Bogor in West Java to Jakarta, spanning 43.3 kilometers across Cibubur-Cawang, Bekasi Timur-Cawang and Cawang-Dukuh Atas. This initial phase is expected to be completed in 2019.

Meanwhile, the second phase will go through a 38.5 kilometer-long route from Cibubur-Bogor and Dukuh Atas-Palmerah-Senayan to Palmerah-Grogol.

Editor: Barratut Taqiyyah Rafie