City Council supports plan to impose road pricing

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.