Crisis throws into limbo Jakarta's megaprojects

Crisis throws into limbo Jakarta's megaprojects

By Hyginus Hardoyo

JAKARTA (JP): Jakartans' dreams for the long-awaited triple-
tier transit system, badly needed to reduce traffic congestion,
are unlikely to come true in the near future.

A groundbreaking ceremony for construction early this year was
rescheduled at the eleventh hour.

PT Citra Moda Margakencana, developer of the Rp 6.2 trillion
project, decided in February to delay the start of construction
due mainly to March's General Session of the People's
Consultative Assembly (MPR) to elect the new president and vice
president.

The enterprise is a joint venture of PT Citra Lamtoro Gung
Persada, owned by former president Soeharto's eldest daughter
Siti Hardijanti Rukmana, the state railway company (Perumka) and
state-owned highway corporation PT Jasa Marga.

Soeharto was expected to attend the ceremony at the Bendi Park
in South Jakarta to mark the start of the project, which would
include 23.6 kilometers of toll roads and 22km of light-rail
tracks connecting Kebayoran Lama in the south to Kota in the
north.

The developer announced it would postpone the groundbreaking
ceremony until the General Session was over, but nothing else has
been heard of its fortunes, particularly since the New Order
government's sudden downfall in May.

Preparations for the startup were well underway, including the
controversial removal of hundreds of trees planted earlier as
part of the city's regreening program.

The developer replanted the trees after Governor Sutiyoso
protested that their removal flouted the city's environmental
efforts.

Under the plan, the triple-tier system will consist of four
main stations -- Ulujami, Kebayoran Lama and Blok M, all in South
Jakarta, and Kota -- and 16 secondary ones.

The system, expected to be completed in 2001, has been delayed
several times. In 1997, the developer was expected to start work
in June, but later postponed it until December.

By year's end, the developer announced the construction would
start two months later, only for it to be thrown into further
limbo when February rolled around.

Warm welcome

City councilors had warmly welcomed the plan to go ahead with
the construction of the triple-tier transit system.

"I think the project is very positive. This city badly needs
mass, rapid transportation to support people's mobility," Lukman
Mokoginta, one of the councilors, said.

Achmad Suaidy, another councilor, said the project must be
dedicated to serving the public's needs.

"I strongly support the effort to cure Jakarta's traffic
problems. This project is one of the best alternatives."

Only a few large-scale projects in the city were not postponed
or rescheduled early this year by developers despite the
prolonged economic crisis.

In line with the sweeping changes in the political situation
in the country, the other projects -- including the ambitious
reclamation along the northern coast and the development of
Jonggol into a township -- eventually ground to a halt as well.

The only major project likely to continue is the subway
connecting Blok M in South Jakarta and Kota. The government
announced recently that its construction would continue under the
financing of Japanese companies, but details on its preparation
remain unavailable.

The government was forced in October to revoke three
presidential decrees signed by former president Soeharto on the
reclamation of North Jakarta Bay and Kapuk Naga coast in
Tangerang and the Jonggol development in West Java out of fear
their implementation would only result in malfeasance and
corruption, collusion and nepotism.

"The decrees used to regulate the projects are too high," said
State Minister of Agrarian Affairs/Chairman of the National Land
Agency Hasan Basri Durin.

Deviation

Malfeasance which might arise from the implementation of the
projects, he said, could come in the form of deviation from the
city's planning regulations and preferential treatment in the
granting of facilities.

"That's why the three decrees were revoked," Hasan said.

Among developers for the Jakarta Bay reclamation project was
PT Manggala Krida Yudha, a private company owned by Soeharto's
youngest daughter Siti Hutami Adiningsih. The company had been
allowed to reclaim 500 hectares for the construction of the Ancol
Baru project.

Other contractors selected for the bay project include PT
Mandira Permai and PT Kapuk Naga Indah.

The Pantai Indah Kapuk waterfront project, developed by
Mandira Permai, was scheduled to be completed in 2002.

Kapuk Naga Indah, a subsidiary of the widely diversified Salim
business group, was conducting reclamation work on 674 hectares
north of Pantai Kapuk in the western part of the Jakarta Bay
reclamation zone, which covered a total area of 2,700 hectares.

The reclamation project was scheduled to be completed within
15 years.

The Ministry of Forestry and Plantations requested earlier
that the 30,000-hectare Jonggol township project linked to one of
Soeharto's sons be put on hold until the developer settled a
dispute with the ministry.

PT Bukit Jonggol Asri, the developer of the township project
located in the Jonggol district of Bogor, about 30 kilometers
southeast of Jakarta, is believed to have failed to meet its
obligation to provide forest areas in exchange for the site used
for the project.

According to the plan, the Jonggol self-sufficient city was
designed to be the biggest housing project in Greater Jakarta.

"The three projects, however, can go on if the governors and
the local administrations consider that they do not deviate from
the existing planning regulations and, last but not least, the
developers agree to continue the projects," Hasan said.