Indonesian Political, Business & Finance News

Busway project funds drastically increased

| Source: JP

Busway project funds drastically increased

Bambang Nurbianto, The Jakarta Post, Jakarta

After putting off the controversial busway project for over a
year because of inadequate planning, the city administration now
is seeking a mammoth 80 percent increase of the budget from Rp
50.8 billion to Rp 90.25 billion.

Some Rp 50 billion is to be spent to buy 60 new buses, an
average cost of Rp 833 million (around US$92,555) for each, head
of the City Transportation Agency Rustam Effendi told the City
Council's Commission D for development affairs on Tuesday.

Rustam did not explain the details of the additional spending
which has caused the budget to swell by 80 percent, he only said
that there were "more items" added to the budget.

For example, the agency intends to buy some 60 buses instead
of the 50 as planned earlier. The additional buses, they claimed,
were necessary to ensure that the proposed 5-minute or less wait
at each bus stop could be fulfilled.

In January, two buses - a Japanese Hino and a German-made
Mercedes - will do trial runs on the 12-kilometer route from Blok
M in South Jakarta to Kota in West Jakarta. An official said last
weekend that the trial would be needed to decide which bus was
most suitable for the project.

As for the new busway system itself, none of the planners or
officials could say when it would actually be implemented.

The original Rp 50.8 billion budget for the project was
allocated in the 2002 City Budget. But only Rp 4 billion was
spent on miscellaneous items. The balance is technically supposed
to be returned to the City Treasury.

Another Rp 86.25 billion will be taken from the 2003 City
Budget -- which will total more than Rp 11 trillion -- to pay for
the busway system.

Rustam said the funds will be used for three main categories
of projects: the procurement of the 60 buses, the development of
supporting facilities of the system (Rp 33 billion), and for a
bus development project (Rp 3.25 billion).

Under the bus development project, the agency would buy two
buses to test the route, and do an assessment of the trials.

The supporting facilities of the busway system include road
dividers (Rp 2.7 billion), bus shelters/platforms (Rp 5 billion),
traffic signs (Rp 4 billion), a tracking system (Rp 4 billion)
and an information system (Rp 1.5 billion).

The project requires modified buses with entryways that are
one meter from ground level as they will only stop at special
platforms which are at the same level.

Originally, the busway system was to be launched this year to
reduce traffic congestion on the main roads of Jl. Sudirman, Jl.
MH Thamrin, Jl. Hayam Wuruk and Jl. Gajah Mada during rush hour.

However, transportation analysts doubt that the system will
help very much in resolving Jakarta's notorious traffic problem.
They said that the system was no where near an adequate solution
for the transportation system in the city.

A subway system is most often cited as the best solution for
the chronic traffic jams in the capital. Discussions about
building such a system began more than a decade ago, but no
significant progress has been made.

Environmentalists have also expressed concern over the busway
system, particularly because hundreds of trees along the roads
between Blok M and Kota will have to be cut down to make way for
the bus shelters and other facilities.

The system is also drawing staunch opposition from the city
bus operators as the fares for the busway will be only Rp 2,500,
much less expensive than the current fares for the air-
conditioned buses, which is Rp 3,500.

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