Bimantara boss joins US$1.5b MRT project
Bimantara boss joins US$1.5b MRT project
JAKARTA (JP): Chairman of the Bimantara business group Bambang
Trihatmodjo, the second son of President Soeharto, is to be one
of several investors in the Mass Rapid Transit project.
Irsan Rifai, who heads the secretariat of the project's joint
working group, said Friday that Bambang had joined forces with
another businessman, Bambang Yoga Soegama.
The companies representing their interests in the subway
project for the Blok M to Kota route are PT Krisnatara and PT
Investasi Kusuma Arta, Irsan said. The project will cost around
US$1.5 billion.
Earlier reports said Bambang's elder sister Siti Hardiyanti
Rukmana, who heads PT Citra Lamtorogung Persada, was interested
in the project. But officials of the project management unit have
denied this.
Irsan said the two companies will finance the construction
phases when the basic design is completed, but did not reveal any
figures.
The basic design is being financed by a consortium consisting
of PT Bakrie Investindo, PT Pembangunan Jaya, PT Lippo, PT
Bukaka/PT Kuda Perkasa, PT Suthamthabie and PT Steady Safe.
Other investors in the basic design, estimated to cost US$ 8
million, are Ferrostahl AG of Germany and Japan's Itochu Corp.
"Presentation of the basic design itself was conducted on
Sept. 4 before Governor Surjadi Soedirdja and State Minister of
Research and Technology B.J. Habibie," Irsan said.
The MRT project is under the auspices of the Agency for
Application and Assessment of Technology, which Habibie chairs.
Irsan said the working group, which consists of various
government representatives, including some from the municipality,
is still working on the draft of a presidential decree on the
project.
Irsan said the drafting is taking time "because we must be
very cautious". The presidential instruction, he added, would
include the authority of the municipality in managing the subway
and in drawing public funds for the project.
An executive of the project management unit said earlier that
funds from private investors would not be enough.
The executive, Slamet Sularno, said up to Rp 868.8 billion
could be raised from the public by the year 2025, by reactivating
lapsed tax regulations.
Another proposal is the controversial congestion pricing
system. Motorists passing through main roads during and after the
construction of the MRT will pay a certain fee in rush hours.
"The proposals are still being discussed by the council,"
Irsan said.
Construction cannot begin before the decree is issued.
According to schedule, construction should begin next year, and
reach completion in 2001. (anr)