Adding IDR 28 trillion investment, KAI has exclusive contract with PTBA

PT Kereta Api Indonesia held talks with PT Bukit Asam Tbk.(PTBA) for an exclusive contract to increase coal transportation over the next five years in line with the steps of producers to realize the Paris agreement until 2050.

KAI President Director Didiek Hartantyo conveyed that he would invest in freight transportation for the next five years worth Rp28 trillion through increasing coal transportation from 45 million tons to 105 million tons.

“We have been in contract talks with PTBA to increase to 64 million tons of special contracts with PTBA.Actually, if the private contract is 45 million tons, “he explained, Monday (07/27/2020).

Didiek continued that opportunity because now coal producers were racing against time to transport coal.All producers are competing to transport their coal in accordance with the 2050 carbon neutrality Agreement in the main commitments in the 2015 Paris Agreement on climate change.

To fulfill this, EU member states must reduce their carbon emissions from fossil fuels and find ways to offset the remaining emissions.

“So we will invest so that the sales of previously Rp22.6 trillion to Rp44 trillion of profit of 2 trillion to 4 trillion,” he added.

Didiek explained that KAI’s income was disrupted only during this pandemic.He detailed when compared to the previous year, KAI’s revenue was always maintained and was seen from the daily passenger volume.

Didiek said the average until mid-March, the volume of passengers more than one million per day.The decline curve, he continued, began from mid-May to 239,000 passengers per day, down 78 percent.Furthermore, if the average daily income reaches Rp23 billion, up to May it only reaches Rp3 billion.Revenues decreased to 87 percent.

In addition, if in general KAI’s revenue from passengers increased during busy periods up to Rp. 40 billion per day now it only reaches Rp.

The pandemic also impacted profit loss in May to Rp569 billion.However, the nominal was also obtained by KAI from the transportation of goods by the erosion of passengers.

Didiek hopes that KAI will collaborate in the future not only by relying on passengers but also changing its concept to become a customer of service.

“If a passenger only buys one ticket, the other customers can.We cooperate with other transports, gojek grab, also includes what access from the house you want to ride.Charter will provide a payment platform integration, “he stressed.

Meanwhile, Corporate Secretary Apollonius Andwie C explained to support the optimization of coal transportation, in collaboration with KAI.In early 2020, he continued, had completed the development of the Tanjung Enim – Kertapati railroad coal transportation project with a capacity of 5 million tons / year, along with the development of the Kertapati Pier facility.As for the coal transportation project the railroad heading Tanjung Enim – Tarahan (Tarahan-I) to 25 million tons / year by the end of 2020.

He continued this year, together with the BUMN BUMN, the API train would transport 27.5 million tons of coal.

“The realization until the first quarter of 2020 reached 6.5 million tons, an increase of around 12 percent compared to the same period last year.”PTBA and PTKAI have a long-term cooperation agreement,” he explained.

Source: https://ekonomi.bisnis.com/read/20200727/98/1271779/tambah-investasi-rp28-triliun-kai-jaring-kontrak-eksklusif-dengan-ptba