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)