INDUSTRY.co.id - Jakarta - Transportation Minister Budi Karya Sumadi said that the Jakarta-Surabaya Railway Finance financing budget jumped to more than Rp100 trillion from the initial Rp60 trillion-Rp70 trillion.

"If the budget is Rp 60 trillion, but the budget is now more than Rp100 trillion," said Budi Karta after the meeting at the Coordinating Ministry for the Ministry of Home Affairs, Monday (29/1 / 2018_

Budi said in his meeting with Minister of Maritime Affairs Luhut Binsar Pandjaitan, the Jakarta-Surabaya Railway Revitalization Project will use narrow gauge.

The project is targeted to begin in 2018 pending a feasibility study completed by the Agency for the Assessment and Application of Technology (BPPT) and the Japan International Cooperation Agency (JICA) in March 2018.

According to Budi, due to high investment value, the government will review the budget to be reduced to a maximum of Rp90 trillion with three criteria.

"First, it involves national contractors, secondly, using domestic and third technology, optimizing with the most optimized technology, because it would be elevated from Jakarta to Surabaya." Elevated "in certain parts only , "he said.

Budi explained later that the financing is expected not to burden the state. The government is reviewing the concept to seek private funding from a number of countries without adding to the state debt ratio.

The government also plans to establish a special authority to receive and manage the funds to be realized in the project.

"Mr. Luhut pointed to the potential of private funds from several countries including Japan which can be used without involving the State Budget Loans," he said.

Budi admitted the concept of the establishment of special authority is the idea of ​​Coordinating Minister Luhut who said that the concept of private loans from abroad can be used so as not to burden the state budget. Thus the construction of infrastructure projects also can still run well.

The concept has been used in a number of countries such as the United States for the construction of the World Trade Center (WTC). "The WTC uses the authority as well, not the government or the private sector," he said