Jakarta welcomes investors for its subway project<\/p>\n
JAKARTA (JP): Governor Sutiyoso welcomed on Thursday the
\ninterest of a Taiwan-based consortium to take part in the
\ncountry's first subway project here, which has been lagging due
\nto uncertainty over financial sources.<\/p>\n
Speaking to reporters after meeting a group of three visiting
\nbusiness representatives from Taipei, Sutiyoso said that his
\nadministration was hopeful that the Taiwanese consortium would be
\nable to provide a soft loan similar to that offered earlier by
\nthe Japanese government.<\/p>\n
\"I don't know whether the consortium will be able to do it or
\nnot. They are from the private sector, not the government sector
\nlike the Japanese,\" the governor said.<\/p>\n
Sutiyoso, however, gave no further explanation of the
\n\"interest\" of the Taiwanese, who were accompanied by agriculture
\nexpert Bungaran Saragih and a local man.<\/p>\n
\"I know nothing about the meeting,\" Bungaran, a senior
\nlecturer at Bogor's Agriculture Institute, told reporters.<\/p>\n
There were also no words from the visiting Taiwanese, one of
\nwhom named himself as a deputy secretary general of the
\nKuomintang nationalist party.<\/p>\n
Their company's name was also unavailable but city officials
\nsaid that they specialize in constructing airports, highways and
\nsubways.<\/p>\n
The city administration has proposed the construction of the
\nmega-project, estimated to cost some US$1.5 billion, since 1997,
\nwhen former president Soeharto still ruled the country.<\/p>\n
It was postponed after the country was hit by the monetary
\ncrisis.<\/p>\n
The Japanese government had earlier given its commitment to
\nfinance the project, promising a special yen loan with a 7.5
\npercent annual interest rate. The special loan will have a
\nmaturity period of 40 years with a grace period of 10 years.<\/p>\n
The project already received strong support from both
\nPresident Abdurrahman Wahid and Vice President Megawati
\nSoekarnoputri.<\/p>\n
Until today, there has been no clear signals about when the
\nconstruction would start.<\/p>\n
No sign<\/p>\n
The central government has given no clear sign about whether
\nor not they still support the plan and whether they would help
\nseek foreign investors to realize the project.<\/p>\n
\"I don't think the central government is giving top priority
\nto the project. I heard it's been placed on third priority,\"
\nSutiyoso said on Thursday.<\/p>\n
\"We don't know for sure when the construction will begin if
\nit's placed in third priority,\" he added.<\/p>\n
The first stage of the subway project will serve a 15-
\nkilometer route from Fatmawati in South Jakarta to the National
\nMonument (Monas) park in Central Jakarta with 13 stations, before
\ncontinuing on to downtown Kota in West Jakarta.<\/p>\n
Assistant to the City Secretary for Development Affairs Ongky
\nSukasah, who also attended the meeting with the Taiwanese, said
\nthe delegates also conveyed their intention to import hydrocarbon
\nresources from Indonesia.<\/p>\n
\"Once they're committed to invest in the project, they will
\nimport crude oil, coal and natural gas in large quantities. But
\nthey need a guarantee that we'll be able to provide the supply
\nover a long term,\" he told The Jakarta Post.<\/p>\n
Head of City Development Planning Board Bambang Sungkono, who
\nwas also at the meeting, said it was almost impossible for the
\ncity administration to take an off-shore loan.<\/p>\n
\"Although we have Law No. 25\/1999 on Central and Regional
\nFinancial Balance, I don't think the central government will
\nallow us to self-finance the project by taking an off-shore
\nloan,\" he said. (nvn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jakarta-welcomes-investors-for-its-subway-project-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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