$1b needed to build subway from Blok M to Kota area

$1b needed to build subway from Blok M to Kota area

JAKARTA (JP): State Minister for Research and Technology B.J.
Habibie said yesterday that building a subway, linking Blok M in
South Jakarta and Kota (downtown) in West Jakarta, will need an
investment of about US$1 billion.

Speaking to reporters before attending a cabinet meeting,
presided over by President Soeharto, he said that in order to
prevent commuters from being burdened by a large investment, there
should be a cross subsidy.

"Due to depreciation, the cross subsidy is expected to
gradually decline, while on the other hand the country's per capital
gross national product and people's purchasing power will rise," he
said.

Habibie made the remarks in response to reporters' question on
the progress of the government's plans for building the Blok M-Kota
subway project.

The minister said that a number of foreign companies from
Germany, Japan, Britain and France have sent proposals for the
construction of the subway.

"The more companies sending proposals for the project, the
better, because it will enable us to reach an optimum level, in
which the proposal with the lowest cost will be chosen," he said.

The low cost level will be of great advantage to commuters, he
said.

According to Habibie, a subway constitutes the most effective
alternative to help solve traffic problems in the city because it
guarantees fast movement.

The government has assigned a team to prepare proposals for the
construction of a mass rapid transit system, whether to use an
underground or elevated system. The proposals are expected to be
completed soon.

The team, led by Secretary General of the Ministry of
Transportation Muchtarudin Siregar, comprises of officials from the
transportation ministry, Jakarta administration, the Ministry of
Public Works, the National Development Planning Agency and the
Agency for Assessment and Application of Technology. (hhr)