Bambang Nurbianto and Tertiani ZB Simanjuntak

Bambang Nurbianto and Tertiani ZB Simanjuntak
The Jakarta Post/Jakarta

Despite questions about financing, troubled joint venture firm PT
Jakarta Monorail (JM) is confident it can complete the first five
kilometers of the city's monorail system from Casablanca to
Karet, South Jakarta, by March 2007.

During a visit to The Jakarta Post last week, JM director
Sukmawaty Syukur said that the project was on schedule despite
several delays due to changes in the masterplan.

"The monorail is the answer to the city's need for a mass,
rapid and affordable transportation system," she said.

Saying Governor Sutiyoso supported the project and
highlighting the environmentally friendly nature of the monorail,
Sukmawaty said talks with several investors were underway.

"It's not that we have to get investors to cover the whole
expenses of the project at one time ... we move on every step of
the projects," Sukmawaty added.

However, the City Council said it needed to see more proof of
financial security before it would give its approval for the
partially city-backed project to continue.

In its agreement with the city administration, the consortium
has to prove it could provide financing for the project by the
end of October at the latest.

City Council Commission D member for development affairs
Arkeno said that the commission would summon JM by the end of
this month to update the commission on its progress.

Arkeno said the council supported the development of monorail
projects but said JM should be able to convince other investors
to take part.

"If the company has no ability to find investors and the
financing cannot be completed in October, we may recommend that
the city administration find other partners for the project," he
added.

An ongoing dispute between JM shareholders: PT Indonesia
Transit Central (ITC) that holds 55 percent of shares and Omnico
Singapore Pte. Ltd. that holds the remaining 45 percent.

"If the dispute between the two cannot be resolved, there will
be no financial institution interested in the project," Arkeno
told the Post on Saturday.

Last week, Sutiyoso in a surprise move announced the
withdrawal of Omnico from the project and said ITC already had
new partner.

However, Omnico executive director Leon K.L. denied the
company had left the consortium.

The appointment of the Indonesian Consortium for Monorail
Industries (ICMI) to supply the rolling stock has sparked a rift
between PT Indonesia Transit Central (ITC) and Omnico.

ICMI is a local consortium chaired by Bukaka, whose shares
are partly owned by Vice President Jusuf Kalla.

Omnico had rejected ITC's decision to use ICMI technology and
proposed rolling stocks produced by South Korea's Rotem instead.

Sukmawaty, who is from ITC, said that the total project cost
would only amount to $489 million if JM used ICMI technology,
while Rotem's would cost $826 million.

"The project will be supervised by German's Siemens who has
decades of experience (building) fast tracks. With all of the
preparations we've made, there is no reason to stop this
project," she said.