MRT plan needs further study: Japanese envoy

MRT plan needs further study: Japanese envoy

JAKARTA (JP): Japanese Ambassador to Indonesia Takao Kawakami
insisted over the weekend the Jakarta administration's plan to
build a mass rapid transportation system still was a long way
from being realized.

"I've heard a lot of discussion (of the plan), especially in
the private sector. So far nothing concrete has come from it,"
Kawakami said on Friday.

However, the ambassador said his government continued to study
the plan.

Kawakami said Tokyo had to consider the viability of the
project since it would mean a multibillion dollar investment for
the Japanese government. Therefore, he said, Tokyo could not give
a definitive start date for the project.

Vice President Megawati Soekarnoputri voiced her support
earlier this month for the Jakarta administration's plan to
construct the US$1.5 billion 15-kilometer subway line, with the
first stage linking Jl. Fatmawati in the south of the city and
Kota in the north.

Governor Sutiyoso said last week the project would begin
sometime next year. The planned project, he said, would be funded
by a consortium of companies from Germany, Japan and Indonesia,
with the Japanese government providing the majority of the
funding.

"We hope the project, which has been postponed, can start next
year," Sutiyoso said.

He said an open tender would be held to select who would win
the right to construct the 15-kilometer subway line. Sutiyoso
said he would meet with President Abdurrahman Wahid, who had just
returned from a visit to Japan, to discuss the financing for the
project.

Enthusiasts

The announcement sparked an immediate reaction from a number
of parties, including local contractors eager to take part in the
giant project.

The Jakarta Post received a number of calls from businessmen
asking for the address of the consortium or the names of
officials in charge of the mass rapid transportation (MRT)
project.

The proposed subway would be the first of its kind in the
country. The capital's poorly planned road system and the
overwhelming number of private vehicles in Jakarta has led to
chronic traffic congestion here.

However, it is unclear whether the proposed subway would ease
traffic jams and reduce the number of cars on Jakarta's roads.

Local media reported recently that traffic congestion resulted
in $900 million in losses annually for Jakarta.

Ambassador Kawakami said the Japanese Embassy in Jakarta
recently completed a study of Jakarta's traffic system, adding
that the study also looked at the possibility of constructing
other types of MRT systems besides a subway.

"The study was completed two months ago ... but I have not
received a complete report of it," the envoy said.

He said Tokyo would decide whether to fund the subway project
based on the results of the study.

However, Kawakami stressed that Japan would continue to assist
the authorities in Jakarta in solving the capital's traffic
problems regardless of its decision on the subway project.

Noted economist Sri Mulyani suggested last week the city
administration postpone the project, saying it was not urgent for
the city's development. (04/bsr)