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)