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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