KAI revises profit target

KAI revises profit target

BANDUNG (JP): State railway operator PT Kereta Api Indonesia
(KAI) revised down its net profit target for 2000 budget year to
only Rp 1 billion (US$140,000) from an initial target of Rp 70
billion due to change of the company's status.

Director General of Land Transportation, Santo Budiono, who is
also chief commissioner for KAI, said on Monday that the change
in the company status from a special state firm to a limited
liability state firm forced the company to pay Rp 512 billion per
annum to the government for the use of the latter's railway
tracks.

In addition, KAI must invest heavily to build its own railway
tracks, including double tracks linking Cikampek and Cirebon in
West Java and linking Kroya with Yogyakarta. The company also
plans to build a double track for the Yogyakarta-Solo route in
Central Java. (25)