Councillors want subway project to begin in 2001

Councillors want subway project to begin in 2001

JAKARTA (JP): To support the central government's efforts to
secure an immediate economic recovery for the country, the city
administration should include the construction of a subway on its
list of development projects for 2001, a councillor from the
National Mandate Party (PAN) said on Wednesday.

Wasilah Sutrisno, chairwoman of the City Council's PAN
faction, said beginning construction of the Mass Rapid
Transportation (MRT) project next year would help create a
favorable environment for the revival of the city's economic
fortunes.

"The project will help create jobs and revive the capital's
economy and industry," Wasilah said at the City Council building.

The city administration has been proposing the construction of
the mega project, which is estimated to cost some US$1.5 billion,
since 1997, when former president Soeharto still ruled the
country.

The project was postponed after the country was struck by the
economic crisis in the middle of 1997.

The Japanese government had committed to financing the
project, promising a special yen loan with a 7.5 percent annual
interest rate. The special loan would have a maturity period of
40 years with a grace period of 10 years.

A group of Taiwanese investors also have indicated their
interest in participating in the financing of the subway project.

While both President Abdurrahman Wahid and Vice President
Megawati Soekarnoputri had voiced their support for the subway,
there is as yet no clear sign when the project will begin.

Wasilah said the city administration should consider the
subway project as part of its goal of enhancing public services,
including improving the public transportation system.

Another PAN councillor, Tjuk Sudono, said the administration
should make the construction of the subway a priority.

"A subway system is a feasible solution to resolve the city's
prolonged transportation problems," Tjuk said.

He expressed hope the MRT project could begin next year, when
the country's political situation is expected to be more stable.

Tjuk, however, stressed the importance of not taking out loans
to finance the project. "The administration should include local
private sectors and investors in the project's financing."

He said a loan-based financing of the subway's construction
would only add to the burden of the public.

The director general of land transportation at the Ministry of
Communications, Santo Budiono, said last March a Mass Rapid
Transportation system was a must in Jakarta, where 12 million
people travel throughout the city each day.

The city administration estimated the project would absorb
some 60,000 currently unemployed construction workers and the
completed subway would save the city an annual $900 million in
lost revenue as a result of traffic jams. (lup)