'Perumka to operate train on 3-layer transit system'

JAKARTA (JP): The state railway company, Perumka will operate the train in the three layer transit system, Minister of Transportation Haryanto Dhanutirto said yesterday.

"Based on the 1993 Train Law only Perumka has the right to operate the light rail transit on the Bintaro-Kota station route," Haryanto was quoted by Antara as saying.

He was commenting on the three layer transportation system proposed by the Citra business group, led by President Soeharto's daughter Siti Hardiyanti Rukmana.

In the proposal, the Rp 5.8 trillion project consists of an elevated railway track, toll roads and regular roads.

Dhanutirto's statements will probably end the 'unofficial' polemics between Minister of Public Works Radinal Moochtar and Deputy Governor on Economics and Development TB. M. Rais.

Radinal said the three layer transport system project did not need a presidential decree to start, while Rais said the decree was needed.

Rais said the decree was needed for such national projects. He said a presidential decree would be needed to decide what company would be entitled to operate the train.

People have been confused about what kind of transport system would be built to ease Jakarta's traffic woes because another project, an subway, has also been proposed.

The 14.5-kilometer subway system would be built by a consortium called the Indonesian Japan European Group (IJEG), led by businessman Aburizal Bakrie. the President's son, Bambang Trihatmodjo joined the consortium in July.

Both groups propose to start this year.

Meanwhile German envoy Heinrich Seemann met Governor Surjadi Soedirdja yesterday. Germany's Ferrostahl AG is a member of the consortium proposing a subway.

Surjadi said Seeman offered assistance including soft loans to fund the subway.

Recently, the group's proposal estimated costs of Rp 4.5 trillion. Initial plans said the city should pay some of this.

Earlier estimates said the city needed to raise US$25 million a year for its equity and another $35 million a year to pay back loans in 25 years.

Funds and the necessary technology are not difficult to find, Surjadi said, compared to finding ways of how the city should conduct fund raising.

The city has not yet responded to revenue ideas from a study group on the subway, like reactivating lapsed taxes and increasing fees.

"Of course we would like to start the subway project as soon as possible," Surjadi said. City officials have said either the subway or three layer transit system should start soon given the city's heavy traffic. (anr/ste)