$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)