Celios Criticizes Danantara's PSO Plan for KCIC Infrastructure Funding

Controversy Over PSO Usage

Celios, a digital economy research firm, has raised concerns about Danantara's plan to use Public Service Obligation (PSO) funds to support PT Kereta Cepat Indonesia China (KCIC) in completing its high-speed rail infrastructure. Nailul Huda, Director of Digital Economy at Celios, argues that this plan contradicts existing regulations regarding the use of PSO funds.

Regulatory Framework

According to Huda, PSO is intended for service operations, not infrastructure development. He referenced Article 66 of Law No. 19/2003 concerning SOEs, which clearly states that PSO is meant for service provision by state-owned enterprises, not for infrastructure completion. The law has not changed even with the latest revision.

Implications for Infrastructure Projects

In the transportation sector, PSO is typically used for public benefit services, such as ticket discounts or operational subsidies. Using it for infrastructure financing could set a problematic precedent. This issue highlights concerns about financial governance in state-owned enterprises and the management of large infrastructure projects in Indonesia.

Key Stakeholders and Their Roles

The main entities involved are: Danantara (the infrastructure financing body), KCIC (the high-speed rail operator), and BPI (the investment management body). The controversy centers on whether the planned PSO usage complies with existing legal frameworks and financial regulations.