Indonesia: partial state funding for Makassar-Parepare railway project

The Indonesian government will only partially fund the development of the Makassar-Parepare railway in South Sulawesi that may cost Rp 15 trillion (USD1.13 billion). Within the 2017 state budget, the government can afford financing the construction of only 30 kilometers, 20% out of the total 146-km. The remaining would be handed over to either state-owned enterprises or private firms, Transportation Minister Budi Karya Sumadi said.
however, the government will support future operation of the railway, such as public service obligation (PSO) activities. Under the PSO, it may subsidize trip fares to make them affordable for passengers.
The Makassar-Parepare railway is part of the 1,700-km trans-Sulawesi railway project that is set to start operations in 2018.

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