Jakarta to host infrastructure meet

The Jakarta Post, Jakarta

The city administration will host the Jakarta Infrastructure Summit late next month in a bid to attract local and foreign investors to take part in infrastructure development, including the seven planned inner city toll roads.

"The administration will introduce the planned projects to the participants of the summit next month. We hope that there will be serious investors to finance the project," said president director of city-owned developer Jakarta Propertindo (Jakpro) IGKG Suena on Monday.

The six planned toll roads to be constructed next year are the Kemayoran-Kampung Melayu, Rawa Buaya-Sunter, Bekasi-Kampung Melayu, Kampung Melayu-Duri Pulo via tomang, Sunter-Pulogebang, Ulujami-Tanah Abang and Pasar Minggu-Casablanca routes.

Suena said the administration would establish a consortium to accommodate private companies interested in joining the project valued at Rp 23 trillion (US$2.5 billion).

According to Suena, the administration has not ruled out the possibility of foreign investors financing the projects, but stressed that it preferred domestic investors as the revenue would be in rupiah.

Suena, who is the former assistant to the city secretary for development affairs, also said the administration was currently seeking permits from the central government, particularly the Ministry of Public Works, for the toll road projects.

Deputy Governor Fauzi Bowo, who announced the plan last Thursday, said the project would cover a total of 85 kilometers and was expected to ease chronic traffic congestion in the capital.

Transportation analysts, however, criticized the plan, saying that it would not ease traffic congestion because such projects would only encourage residents to drive their own cars.

They urged the administration to focus on the development of public transportation -- buses and railways.