Building mass railway network remains difficult: Tutut

Building mass railway network remains difficult: Tutut

JAKARTA (JP): The construction of a mass rapid railway network
in Indonesia remains difficult to be realized due to a series of
constraints, according to a leading businesswoman.

Siti Hardiyanti Rukmana told reporters on Wednesday that, on
one hand, the government does not have the funds to implement
such a huge project. On the other, private companies would not be
allowed to launch such a project -- even if they had the
technical capability and the required funds -- because all of the
country's railway systems are under the control of the state-
owned railway company, Perumka.

Better-known as Mbak Tutut, the eldest daughter of President
Soeharto made the remark after signing loans from various
national banks to the Citra business group, which she chairs.

The Rp 1.5 trillion (US$636 million) in loans will be used to
finance the construction of two segments of toll roads which will
link Pondok Pinang and Kebun Jeruk -- stretching 11.1 km -- and
Cikunir to Tanjung Priok, with a length of 19.2km.

In an effort to ease Jakarta's notorious bumper-to-bumper
traffic jams, the city administration is planning to build the
country's first subway system connecting Blok M in South Jakarta
with downtown Kota, with a planned 14.5km length.

The total cost of the project being undertaken by a consortium
-- comprising investors from Indonesia, Europe and Japan, along
with the city administration -- is estimated at US$1.5 billion.

PT Citra Lamtorogung Persadha of the Citra Group had expressed
its intention to build a three-level transportation system, which
would consist of an artery road on the ground level, an elevated
light rail transit track on the second level and a toll road on
the top level.

The company had previously said that it wanted to begin the Rp
2.7 trillion (US$1.2 billion) project next year. (bas/sur)