Foreign investors sought for Rp 4.2t Monas project
JAKARTA (JP): Foreign investors are badly needed to help develop underground commercial facilities and an amphitheater in the National Monument (Monas) park, an official said yesterday.
The city authorities, who are facing serious budgetary problems, have not been able to begin the estimated Rp 4.2 trillion development planned for the area to the south of the park, Maruli Manurung, head of the Monas management office, said.
He strongly believed that no local investors would have the capacity to complete the projects at the present time and added that the city's governing authorities were unlikely to be in a position to help in the near future.
"The administration is focusing all its efforts on providing staple food," Maruli told The Jakarta Post.
The planned projects could only go ahead if they received the backing of foreign investors with strong financial and technical backgrounds, he argued.
"Developers from abroad might be interested in these projects, especially the proposed amphitheater," Maruli added.
On Monday, Governor Sutiyoso suggested that private contractors should be encouraged to bid for the projects, which include the construction of a two-story underground complex and an amphitheater.
The lower story of the underground complex would be a car park and a shopping arcade would be developed on the upper floor. The amphitheater would be constructed on a five hectare site facing the City Hall.
According to Sutiyoso, the administration, which has an Rp 1.3 trillion budget for this fiscal year, is already in financial trouble.
As a result, the authorities will be unable to proceed with projects planned for the Monas area, especially the commercial developments in the area to the south of the monument.
The southern half of the park is flanked by Jl. Medan Merdeka Selatan. The City Hall, the American Embassy and a number of government buildings face into the park from the other side of the road.
Details
The masterplan for the area has earmarked a seven hectare site for the construction of an underground complex stretching from the western edge of Jl. Medan Merdeka Selatan to Gambir railway station on Jl. Medan Merdeka Timur.
The complex will be able to accommodate 2,500 cars, 60 buses and 500 motorbikes when completed, and the shopping arcade will house hundreds of shops and kiosks.
According to Maruli, the cost of the project has soared since the rupiah plunged in value against the U.S. dollar. When the masterplan was first drawn up in the early 1990s, a price tag of Rp 600 billion was attached. That has jumped to an estimated Rp 4.2 trillion at the last count.
He recommended that the administration set up a build-operate- transfer scheme with interested foreign parties.
The scheme would ensure that the city administration retained control of the commercial areas and access to the facilities, he said.
The idea was supported by senior councilor Lukman F. Mokoginta of the Indonesian Democratic Party.
But Lukman warned the administration to be very careful when setting up cooperative agreements with local or foreign private sector companies.
"We don't want a situation where all the profits go to private counterparts. Remember that Monas is supposed to be a public area. Don't rush into making it a commercial one," he said. (cst)