TEMPO Interactive, Jakarta: The Indonesian and Japanese governments will sign a cooperation agreement for the Jakarta mass rapid transportation (MRT) project by the end of November.
The Japanese government is offering a loan of US$800 million, or around Rp7.2 trillion, with 30 percent project components from Japan, 30 percent from Indonesia and 40 percent to be on an open tender.
According to Transportation Minister Hatta Rajasa, the cooperation will be signed by the finance ministers of both countries.
In the preliminary stage, the government offers funding for detail engineering design (DED) amounting to US$16.5 million to Japan in order to find out the exact value of Jakarta MRT project.
The agreement for the whole MRT funding will be carried out after the value is determined by the DED.
It is estimated that this stage will take a year after the cooperation agreement is signed.
Then the value of the project which will have been concluded will be agreed upon.
The next stage is construction tender.
It is expected that the construction can begin at the end of 2008.