Indonesian Political, Business & Finance News

Central govt, city to cooperate on subway

| Source: JP

Central govt, city to cooperate on subway

Damar Harsanto, The Jakarta Post, Jakarta

First there was the busway, then the monorail system, and now the
city is once again dusting off the Mass Rapid Transport system,
or MRT.

The Jakarta administration and central government are teaming
up to start the ambitious US$767.66 million project in an effort
to ease chronic traffic woes in the capital.

Part subway, part suburban rail system, the first phase will
include three underground stations and nine elevated ones.

"We hope to complete the preparations in a year. Hopefully, we
can start the construction work (on the MRT) in 2006," city
development affairs official Hari Sanjoyo said on Tuesday.

The project would stretch from the Lebak Bulus bus terminal in
South Jakarta to Kota in West Jakarta.

"Previously, we had a recommendation to build the route from
Fatmawati (in South Jakarta) to Kota. But later, we realized that
using the existing Lebak Bulus bus terminal would be easier and
cost less than building a new terminal in Fatmawati," Hari said.

The MRT, which would have the capacity to ferry about 33,000
passengers per hour, is expected to be integrated with the
existing busway corridor and the under-construction monorail.

The busway can transport around 60,000 commuters per day while
the monorail is projected to carry up to 270,000 passengers
daily.

The MRT construction is to be divided into two phases. The
first phase would include the construction of nine elevated
stations and three underground stations.

The first stage will be financed by a $521.75 million loan
generated from foreign institutions and a $245.91 million loan
raised from local companies.

Minister of Transportation Hatta Radjasa said the ministry
would redraw the policies to allow the private sector to join in
the project financing.

President Susilo Bambang Yudhoyono has thrown his weight
behind the project.

Transportation experts have repeatedly said that the MRT was
the most effective solution to handle chronic congestion in the
capital although it would be extremely costly.

However, many doubt the construction of the MRT would be
successful, given the many problems the construction would face
-- the messy underground power, water and telecommunication
networks, unstable soil structure and the recurrent flooding in
the city.

The long-talked about MRT was first approved in 1974, and at
one time looked like it would materialize in 1995 after the
Japanese government gave its commitment to help finance the
project.

But the financial crisis that hit the country in mid-1997
forced the government to postpone it.

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