City Council supports plan to impose road pricing
Bambang Nurbianto, The Jakarta Post/Jakarta
While the city administration is still involved in negotiations with PT Jakarta Monorail on a number of controversial issues, the City Council's development commission D has thrown its political support behind the private company.
During a hearing with executives of PT Jakarta Monorail on Thursday, the commission supported the company's controversial demand for electronic road pricing (ERP) along the roads paralleling the planned 27 kilometers of monorail line.
Under the ERP system, all motorists passing along these roads would be required to pay a fee to the city administration.
Commission chairman Sayogo Hendrosubroto urged PT Jakarta Monorail to provide the Jakarta administration with technical assistance so that ERP could be smoothly instituted along Jakarta's roads.
Company director Sukmawaty Syukur said ERP enforcement was expected to boost passenger numbers on the monorails, which will consist of the planned 14.3 kilometer green line and the 13.5- kilometer blue line.
Sukmawaty said the ERP system would allow the city to collect some US$100 million per year, based on the assumption that each motorist would have to pay Rp 5,000 per trip along the monorail corridors.
The green line is planned to pass by Taman Rasuna, Gran Melia hotel, Gatot Subroto, Satria Mandala, city police headquarters, Sudirman Central Business District, Bung Karno sports complex, Palmerah, Pejompongan, Dukuh Atas railway station, Setia Budi Utara, and Kuningan Sentral.
The blue line, on the other hand, will go through Kampung Melayu, Tebet, Dr. Saharjo, Mentang Dalam, Casablanca Interchange, Ambassador, Sudirman, Karet Interchange, Kebon Kacang, Tanah Abang, Cideng, Kyai Caringain, Tomang, and Taman Anggrek.
During the hearing, Sukmawaty also sought support from the commission for the company's proposal for a subvention from the city administration up to $20 million per year for the first seven years of the monorail's planned operation from early 2007.
She said that her company now wants the city to take a stake in the company of up to $60 million, or 30 percent of the firm's total equity.
The total investment in the project is expected to reach around US$650 million.
Another proposal concerned concessions for kiosks at monorail stations and advertisement space, which would provide additional revenue for the company so that it did not have to rely solely on fares.
According to Sukmawaty, the commitments given by the city administration would be enough to convince investors about the security of their investment.
A number of councillors, however, opposed the request for a subsidy for monorail system for its first seven years. Such a subsidy, they said, would place an unnecessary burden on the city budget.
PT Jakarta Monorail is supported by three local companies -- PT Adhi Karya, Global Profex Synergy and PT Radian Pilar Pasifik -- and three foreign companies -- Singapore Mass Rapid Transit (SMRT), Singapore Technology Electronics (ST - Electronics), and Hitachi Asia Ltd.