Bimantara boss joins US$1.5b MRT project<\/p>\n
JAKARTA (JP): Chairman of the Bimantara business group Bambang
\nTrihatmodjo, the second son of President Soeharto, is to be one
\nof several investors in the Mass Rapid Transit project.<\/p>\n
Irsan Rifai, who heads the secretariat of the project's joint
\nworking group, said Friday that Bambang had joined forces with
\nanother businessman, Bambang Yoga Soegama.<\/p>\n
The companies representing their interests in the subway
\nproject for the Blok M to Kota route are PT Krisnatara and PT
\nInvestasi Kusuma Arta, Irsan said. The project will cost around
\nUS$1.5 billion.<\/p>\n
Earlier reports said Bambang's elder sister Siti Hardiyanti
\nRukmana, who heads PT Citra Lamtorogung Persada, was interested
\nin the project. But officials of the project management unit have
\ndenied this.<\/p>\n
Irsan said the two companies will finance the construction
\nphases when the basic design is completed, but did not reveal any
\nfigures.<\/p>\n
The basic design is being financed by a consortium consisting
\nof PT Bakrie Investindo, PT Pembangunan Jaya, PT Lippo, PT
\nBukaka\/PT Kuda Perkasa, PT Suthamthabie and PT Steady Safe.<\/p>\n
Other investors in the basic design, estimated to cost US$ 8
\nmillion, are Ferrostahl AG of Germany and Japan's Itochu Corp.<\/p>\n
\"Presentation of the basic design itself was conducted on
\nSept. 4 before Governor Surjadi Soedirdja and State Minister of
\nResearch and Technology B.J. Habibie,\" Irsan said.<\/p>\n
The MRT project is under the auspices of the Agency for
\nApplication and Assessment of Technology, which Habibie chairs.<\/p>\n
Irsan said the working group, which consists of various
\ngovernment representatives, including some from the municipality,
\nis still working on the draft of a presidential decree on the
\nproject.<\/p>\n
Irsan said the drafting is taking time \"because we must be
\nvery cautious\". The presidential instruction, he added, would
\ninclude the authority of the municipality in managing the subway
\nand in drawing public funds for the project.<\/p>\n
An executive of the project management unit said earlier that
\nfunds from private investors would not be enough.<\/p>\n
The executive, Slamet Sularno, said up to Rp 868.8 billion
\ncould be raised from the public by the year 2025, by reactivating
\nlapsed tax regulations.<\/p>\n
Another proposal is the controversial congestion pricing
\nsystem. Motorists passing through main roads during and after the
\nconstruction of the MRT will pay a certain fee in rush hours.<\/p>\n
\"The proposals are still being discussed by the council,\"
\nIrsan said.<\/p>\n
Construction cannot begin before the decree is issued.
\nAccording to schedule, construction should begin next year, and
\nreach completion in 2001. (anr)<\/p>",
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