Thresa Sandra Desfika, Jakarta – The operator of Jakarta's mass rapid train, MRT Jakarta, is on course to book a profit in its first year of operation, paving the way to become a publicly listed company in the next three years.
The company is set to earn Rp 60-70 billion ($4.2-4.9 million) in net income by the end of this year, William Sabandar, MRT Jakarta's managing director, said on Wednesday.
The underground and overground train line started commercial operation in April and William said the company could earn Rp 1 trillion in revenue by next month.
This includes Rp 560 billion in ticket subsidies from the Jakarta provincial government, Rp 180 billion from ticket sales, Rp 225 billion from advertising and station naming rights and the remainder from rents.
Booking profits in the first year of operation is relatively rare among public transportation operators, William said. Nevertheless, the company is committed to improving its performance.
MRT Jakarta targets a profit of Rp 200-250 billion next year and Rp 300-350 billion in 2021 when it is expected to pay dividends for the first time. The company plans to conduct an initial public offering (IPO) in 2022.
"If we continue to record profits in the next three years, we can have the IPO. It will allow the public to have direct supervision of the company. We want to encourage a culture of transparency," William said.
The Jakarta MRT has served 19.9 million passengers, 83,500 passengers per day on average, since its debut on March 24 until Nov. 26, William said.
The train line recorded almost 100 percent timeliness during the period, except for a force majeure during Jakarta's massive blackout in August.
"When we are able to provide premium service, people will come. People who were loath to use public transportation are now catching the MRT regularly," William said.
MRT Jakarta has also sold naming rights to five of its stations to local companies: Lebak Bulus Grab, Blok M BCA, Istora Mandiri, Setiabudi Astra and Dukuh Atas BNI.