Joint office planned for MRT project<\/p>\n
Ahmad Junaidi, The Jakarta Post, Jakarta<\/p>\n
Governor Sutiyoso announced on Monday that his administration
\nwould establish an office with a Japanese consortium to realize
\nthe US$1.5 billion Mass Rapid Transit (MRT) project.<\/p>\n
\"We will use a vacant office formerly used by a deputy
\ngovernor,\" Sutiyoso announced after meeting Takehiro Takeuchi, an
\nexecutive of the Japanese consortium, at City Hall.<\/p>\n
The governor had four deputies in previous years, but the
\nnumber was reduced one to earlier this year.<\/p>\n
Sutiyoso revealed that the Japanese government was ready to
\nprovide a soft loan totaling US$1.5 billion with a 1.9 percent
\nannual interest rate for the project.<\/p>\n
However, he said the central government had decided against
\nproceeding with the project in favor of other projects, such as
\nlaying double tracks for the Java railway network.<\/p>\n
\"So I have urged the Japanese government to push the central
\ngovernment to endorse the project. The project should be
\nprioritized,\" he said.<\/p>\n
With an increased city budget, Sutiyoso stated the city
\nadministration could pay off the loan by installment by paying
\nbetween Rp 120 billion and Rp 150 billion a year<\/p>\n
The current city budget amounts to Rp 9.7 trillion, while next
\nyear's budget is expected to be Rp 10.6 trillion.<\/p>\n
Earlier, the Japanese consortium was reportedly reluctant to
\ncommit to the project due to security concerns.<\/p>\n
The project, which would span 15 kilometers from Jl. Fatmawati
\nin South Jakarta to Kota in West Jakarta, was initially planned
\nby a Japanese, European and Indonesian consortium in 1995.<\/p>\n
The MRT is expected to ease traffic, which is often congested
\nin many parts of the city due to the lack of an integrated
\ntransportation system.<\/p>\n
The city administration has also failed to join hands with the
\ngovernments of the bordering towns of Tangerang, Bekasi, Depok
\nand Bogor, from where millions of people commute to their
\nworkplaces in Jakarta.<\/p>\n
In the first stage, the MRT would connect Jl. Fatmawati to the
\nNational Monument (Monas) Park in Central Jakarta. The system
\nwould combine an elevated track and subway.<\/p>\n
The Japanese government initially committed to financing the
\nproject with a special yen loan that carried a 7.5 percent
\ninterest rate per annum. The special loan package would have a
\nmaturity period of 40 years with a grace period of 10 years.
\nConstruction was estimated to be completed within five years.<\/p>\n
The project was postponed when the financial crisis hit
\nIndonesia in mid-1997.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/joint-office-planned-for-mrt-project-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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