Minister Keeps South Tangerang MRT Route Secret to Thwart Land Speculators

Transport Minister Dudy Purwagandhi has stressed that the Mass Rapid Transit (MRT) route to South Tangerang has not been made public in order to prevent land speculation, which could potentially increase the project’s construction costs due to land brokers. “We usually will not open that, because why? Land brokers will be circulating everywhere, and it’s a pity for them (the investors). The most important thing is they will look at it from an economic angle, which route is profitable,” the Minister said during a discussion with journalists in Jakarta on Friday evening (26/6). The statement was made in response to information circulating on social media suggesting the MRT line would pass through several different areas towards South Tangerang, namely Pondok Cabe and Pondok Aren. “They (the investors) will calculate whether to go via Pondok Cabe or via Pondok Aren,” Dudy said. According to Dudy, the government has chosen to keep the alignment confidential because the information could potentially be exploited by certain parties to speculate on land prices around the future construction route. He explained that a rise in land prices due to information leaks could increase investment costs, making project planning less efficient and potentially burdening transport infrastructure development. “We don’t know yet, even if it (the route) is released, they will keep it to themselves, why? Because they are the ones investing. Because if, for example, this leaks out, it will affect the land acquisition costs,” he added. The Minister asserted that investors also have an interest in keeping the route secret so that the land procurement process is not affected by price surges that could disrupt the project’s investment feasibility. According to Dudy, unreasonable land price increases benefit speculators more than the public, who need mass transport development to improve daily mobility. He assessed that if investment costs rise due to land speculation, the impact will be felt by the public as project development becomes more expensive than the government’s initial planning. “Usually they will not open that. Because they fear it will affect their investment costs. Suddenly, land that was originally Rp1 million (per hectare) becomes Rp30 million. The calculations no longer add up. In the end, who is sacrificed? The public. The only ones who benefit are the brokers,” Dudy said. Dudy stressed that the government prioritises expanding the reach of mass transport services and improving connectivity, so that the public gains easier and more efficient travel access. He added that investors have the authority to determine the network development pattern based on the results of business studies and regional needs without having to disclose the route from the early planning stages. “The final destination (MRT Tangsel) is BSD. It’s up to them which way they want to go. For me, the important thing is that the reach is getting further and the connectivity is better,” the Minister said. According to Allan, the study process is targeted for completion by the end of 2026, so that the results can serve as the basis for determining the route and stages of the project’s development. “Regarding the MRT Tangsel, Sinar Mas together with MRT Jakarta are currently compiling the study and we hope that by the end of this year the study will be completed,” Allan said.