PPD Asset Transferring Still Constrained

Jakarta administration is struggling to take over State Owned Enterprises (BUMN), DJakarta Transportation Company (PPD). It is because PPD status is not a Limited Liability Company (PT), but it is a Public Company (Perum), so the asset transfer process from central government to city government cannot run smoothly.

If the central government wants to give it, PPD just needs to be merged into PT Transportasi Jakarta. But the problem PPD is not a PT. Thus, PPD shares cannot be transferred

“If the central government wants to give it, PPD just needs to be merged with PT Transportasi Jakarta. But the problem PPD is not a PT. Thus, PPD shares cannot be transferred," said Basuki T Purnama, Jakarta Vice Governor at City Hall, Tuesday (5/6).

However, Basuki admitted that the city administration is still waiting for the PPD asset transfer to the city government that is being processed at the Ministry of State-Owned Enterprises. "Basically, the city administration still wants it. We're ready to take on the PPD debt," he added.

PPD Grant to Jakarta Provincial Government still Unclear

The city administration has owned one BUMD specialized in bus services, namely PT Transportasi Jakarta that was unveiled last March.

The purpose of the city administration taking over the PPD is to merge all medium size bus and minivan public transportation operators into a single corporation.

Moreover, PPD has a number of land assets in the capital city that can be built as integrated flats by the city administration.