Indonesian Political, Business & Finance News

Jakarta will likely build subway to ease traffic

Jakarta will likely build subway to ease traffic

JAKARTA (JP): Jakarta is almost certain to choose the subway
system as the most favorable alternative to help solve the
increasingly complicated problem of the city's public
transportation.

Governor Surjadi Soedirdja said "I have heard of the
government's decision to build the 10.3 kilometer subway, linking
Blok M in South Jakarta and downtown Kota in West Jakarta,"
Antara reported yesterday.

There has not been any certainty yet about the cost for the
construction of the facility. Surjadi said that its cost is
estimated to reach approximately US$400 million to $500 million,
while Antara's source estimates it will amount to $1.092 billion.

The source, who asked not to be named, said that out of the
total cost of the subway project, 30 percent will be in the form
of an equity and 70 percent in overseas loans.

The equity will be made up of 30 percent in government funds
with the remaining 70 percent coming from the private sector, the
source said.

The source explained that the construction of the project will
start next year and is expected to be completed by the year 2000.

Several consortia from France, Canada, Japan, the United
States, Germany and Australia have reportedly expressed interest
in participating in the construction of the project.

Governor Surjadi said that the participation of the domestic
and foreign companies is welcomed because the government is short
of funds to build the project.

"The government offers a number of incentives to the private
sector joining the project, including the rights to manage
shopping centers at any stations built along the subway project,"
he said.

The governor acknowledged that the project is very expensive
but it is considered to be the most favorable alternative because
while it is being constructed, the work will not affect the
city's activities, particularly the city's busy traffic.

He expressed confidence that the construction of the project
will not affect the movement of population to the southern part
of the city.

"The city administration will strive to maintain the southern
part of the city as a water catchment area."

In a bid to help ease the complicated problem of public
transportation, the city administration, in cooperation with
related institutions, is studying the possibility of building a
mass rapid transport system.

However, the team was involved in a lengthy debate over its
technology: Whether to use an underground or elevated system.

Each system has its own advantages and disadvantages. The
underground system would not ruin the city scenery but is very
expensive, while the elevated one is cheaper but worsens the
view.

The team, led by Secretary General of the Ministry of
Transportation Muchtarudin Siregar, comprises of officials from
the transportation ministry, Jakarta administration, the Ministry
of Public Works, the National Development Planning Agency and the
Agency for Assessment and Application of Technology. (hhr)

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