City government mulls delaying monorail project
Damar Harsanto, The Jakarta Post, Jakarta
Governor Sutiyoso revealed on Monday that the monorail project, which is scheduled to start next month, would likely be delayed.
"We are aware that there is a problem with the Malaysian investor," he said at City Hall.
Sutiyoso only hinted that it might relate to the withdrawal of the Malaysian government's backup for Malaysian firm M Trans Holding.
"They (the company) had support from the government during former Prime Minister Mahathir Mohamad's tenure. Now Malaysia has a new leader," he said, referring to newly installed Prime Minister Abdullah Ahmad Badawi.
Sutiyoso said that Jakarta would open its offer to other investors from Singapore or Britain if "the Malaysian investor fails to meet the time schedule we have established for the project".
It was the second warning by the governor to the Malaysian firm. Previously, Sutiyoso said that he would find another investor if the firm refused to develop lines in less lucrative areas.
The monorail is another public transportation alternative proposed by Sutiyoso, who launched the controversial busway last Thursday. As of today, hundreds of Jakartans were still enthusiastic to try out the busway.
PT Indonesian Transit Central (ITC) -- a consortium comprising PT Adhi Karya, Global Profex Synergy and Radiant Utama -- and M Trans Holding planned to invest US$540 million in the construction of a 27-kilometer, dual-line elevated monorail system. The monorail is to connect Bekasi to the east and Tangerang to the west of the capital.
The signing of the agreement last August in Kuching, Malaysia, was witnessed by Mahathir and President Megawati Soekarnoputri, who was on a state visit to the neighboring country.
PT ITC director Sukmawati Sjukur told The Jakarta Post by phone that M Trans Holding was interested in building only the "green line", a 14.8-kilometer ring serving the capital's golden triangle of Jl. Sudirman, Senayan and Kuningan with 16 stations.
"We are still negotiating with the Malaysian investor ... If it ends in deadlock, we shall look for other sources of finance," she said, adding that ITC has also received offers from Japanese company Hitachi and Canadian company Bombardier.
According to Sukmawati, ITC was still negotiating with its Malaysian partner to develop the "blue line", which is less lucrative. The 12.2-kilometer line, connecting Kampung Melayu in East Jakarta and Roxy in West Jakarta, would serve 13 stations.
The monorail cars would copy those in Malaysia, which use U.S.-based technology, and would be able to travel at up to 80 kilometers per hour. It will take at least two-and-a-half years to complete the monorail construction.