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Railway industry waits huge overhaul if bill passed JAKARTA - The government is preparing a bill on rail transportation that will effectively end the state's monopoly of the industry. It also required an audit of state railway company PT Kereta Api (PT KA). When the bill - scheduled for 27 March - is passed, the government and PT KA are required to hold a technical audit as a step towards rehabilitating all facilities and networks on Java and Sumatra.

The new ruling also tells that all trains, wagons, railway infrastructure and networks are to be audited and repaired to make trains an alternative cheap and safe public transport mode. The management of PT KA will be asked to increase salaries of all employees. Their status hasn't been updated ever since he company became limited in 1992. All employees recruited have been underpaid and are not registered with social security programs as well.

This bill also opens the way for national corporations which want to take part in the rail industry, although there are no detailed regulations yet. "The government will issue a regulation detailing the private sector's involvement in the train business. The bill gives only general rules," said Transportation Minister Hatta Radjasa in a meeting with a House of Representatives' committee drafting the bill.

The minister said that despite the bill, the government would remain the regulator in the railway transportation. He told that the government would likely give new concessions to national businesses to run monorails and mass rapid transportation in big cities and run specialized trains for for example coal and fuel.



Posted in General @ 18 March 2007 15:16 CET by Jeroen · 'Blog' RSS feed · permalink






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