Indonesian Political, Business & Finance News

MRT system gets presidential nod

| Source: JP

MRT system gets presidential nod

Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono has voiced support for the
proposed construction of an integrated mass rapid transportation
(MRT) system in the capital.

After a 30-minute presentation by Governor Sutiyoso on Monday,
the President said Jakarta required an integrated mass
transportation system.

"The MRT project will be introduced during an infrastructure
summit in Jakarta on Dec. 17. Both the central government and the
city administration are committed to this project," Minister of
Transportation Hatta Radjasa said after the meeting.

He said the President had approved the transportation
blueprint outlining the development of an MRT, monorail and
busway to connect all corners of the city.

The MRT project was first approved in 1974 but has been
repeatedly postponed due to financial constraints.

The government said the massive project would require an
investment of about US$780 million and that it was looking to the
Japan Bank for International Cooperation (JBIC) as a possible
source of financing.

"The administration must find financing to cover the
operational costs of the MRT. My office will redraw policies to
allow the private sector to join the project," Hatta said.

Sutiyoso said the integrated transportation system in Jakarta
would includes the MRT, two monorail lines and 14 busway
corridors.

The governor also asked the President to provide empty land
belonging to state-owned companies on which the administration
could construct low-cost apartments.

"We can subsidize the construction, but we need vacant land to
provide affordable housing for people," Sutiyoso said, adding
that construction of the East Flood Canal was also discussed with
the President.

View JSON | Print