Internal disagreement stalls monorail project
The Jakarta Post Jakarta
A disagreement among shareholders of PT Jakarta Monorail (JM) over who should supply 76 trains for the city's first monorail line has stalled the whole project.
A source close to the deal said that Omnico Singapore Pte. Ltd., which owns 45 percent of JM shares, had insisted on using trains produced by South Korea's Rotem, while PT Indonesian Transit Central (ITC), which owns the remaining 55 percent, would prefer to use trains produced by a local consortium.
The source said that using Rotem technology would push the cost up to US$826 million -- $345 million for the rolling stocks or trains and its system and the remaining $481 million for line construction.
Should JM use the technology to be developed by an Indonesia consortium, the total cost of the project would stand at around $426 million only -- $176 million for trains and its system and the remaining $250 million for line construction, the source said.
The source also said if JM used Rotem's cars, 60 percent of the revenue from the planned electronic road pricing (ERP), enforced along the roads parallel to monorail lines, should be allocated for the monorail project.
Governor Sutiyoso, who granted the project to JM, confirmed the rift on Tuesday, and gave the consortium until Thursday to decide on the rolling stock supplier.
"We can not wait much longer," Sutiyoso said at City Hall.
JM director Sukmawati confirmed the differences between ITC and Omnico about the rolling stocks supplier, saying that Thursday's consultation with the administration was expected to bridge the rift.
JM was expected to announce the technology to be used in the project on July 28.
Sutiyoso said that his administration preferred to use monorail cars produced by the Indonesia consortium, because of cost considerations.
"With Rotem cars, the total price of the project would be over $800 million. The investors are also asking for a major part of the turnover from ERP," he added.
JM predicted that the ERP revenue would reach some $100 million per year.
The Indonesian consortium, which came late to the project, is supported by several companies -- U.S. investment bank J.P. Morgan, the Bukaka Group, state train carriage maker INKA, state electronic maker LEN Industries and Siemens. It is also supported by Hong Kong-based Mass Transit Railway Cooperation (MTRC).
The Bukaka Group is partly owned by the family of Vice President Jusuf Kalla.
JM and the city administration had previously terminated a contract valued at $540 million for the same project with a Malaysian company, MTrans Holding Bhd, due to financing problems.
The monorail project was started in June last year and is expected to be finished in 2007.
When up and running, the monorail will cater to transportation needs in the prime business areas of the city through a 14.3- kilometer line as well as a 13.5-kilometer line from Kampung Melayu in East Jakarta to Taman Anggrek Mall in West Jakarta.