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Plan to build triple-tier transit system welcomed

| Source: JP

Plan to build triple-tier transit system welcomed

JAKARTA (JP): City councilors have hailed the plan to push
ahead with the long-awaited construction of the triple-tier
transit system, linking Bintaro in South Jakarta and Kota in West
Jakarta.

The councilors told The Jakarta Post Saturday that the
project, scheduled to start this week, was badly needed to reduce
traffic congestion.

"I think the project is very positive. This city badly needs
mass, rapid transportation to support people's mobility. And
because private sectors are involved... I believe they have
calculated the profit and loss," Lukman Mokoginta of the
Indonesian Democratic Party faction said.

"The project is feasible despite monetary woes because it has
to do with mass transportation. People certainly need it. They
are looking forward to using it... so I think this project will
soon break even."

Lukman said it was vital for the developer to complete an
environmental impact study before proceeding with the project.

"This study is needed because the project will certainly have
an environmental impact. We don't want something bad to happen in
the future."

Achmad Suaidy, chairman of the United Development Party
faction, said the project must be dedicated to serving the
public's needs.

"I strongly support the effort to cure Jakarta's traffic
problems. This project is one of the best alternatives. It would
also open up an opportunity for unemployed construction workers
to join the project."

He urged the developer to tread carefully in each stage of the
project's construction.

"Sooner or later the project will need to conduct land
clearance. I hope the people who are moved from the area are
given proper compensation so it will avoid further conflict."

Governor Sutiyoso announced Thursday that the groundbreaking
ceremony for the construction on the project would be conducted
Wednesday.

The triple-tier transit system is among the few projects in
the city which was not been postponed or rescheduled by the
developers due to the currency crisis.

President Soeharto's eldest daughter, Siti Hardiyanti Rukmana
popularly knows as Mbak Tutut -- who owns the diverse Citra Group
which will oversee the project -- said 500 workers would be
involved in the first stage of construction. They would be taken
from the labor-intensive program.

PT Citramoda Margakencana Persada -- a joint-venture company
comprising Tutut's PT Citra Lamtoro Gung Persada, the state
railway company (Perumka) and state-owned highway corporation PT
Jasa Marga -- is to develop the Rp 6.2 trillion project.

The system is expected to begin operation in 2001.

Under the plan, the triple-tier system will consist of 23.65
kilometers of toll roads and 22km of light-rail tracks with 20
stops. There are to be four main stations -- Ulujami, Kebayoran
Lama and Blok M, all in South Jakarta, and Kota -- and 16
secondary ones.

The construction of the triple-tier transit system has been
delayed several times.

In February last year, Bambang Soeroso, head of the project,
said its construction was expected to start in June, but was
later postponed until late 1997.

Last December, Bambang announced a new schedule, saying the
construction would be delayed for another two months because the
company faced difficulties finding workers ahead of the Idul
Fitri holiday.

Corporate secretary of Citra Lamtoro Gung Persada Fariza
Irawadi, speaking on behalf of Citra Moda Margakencana Persada,
said it made sense to go ahead with the project despite the
nation's monetary woes.

"For four years we have been planning the project. It is a
loss for us if the project is delayed. Jakarta has no sufficient
system of mass, rapid transportation and, in fact, this city
needs it badly."

In Jakarta, the construction of roads increases on average 4
percent per year, while the number of cars grows 14 percent per
year.

"So just imagine how crowded Jakarta is."

He said Mbak Tutut's decision to continue this project was
expected to generate investor trust.

"This project is not being pulled out of thin air... we have
to work hard for it. Hopefully the project can help foster a
better national economic condition."

The project is expected to utilize 10,000 construction
workers, with the first stage concentrating on the construction
of the light-rail transit system.

"I believe this is also a good opportunity to hire unemployed
workers in a kind of labor-intensive program," Fariza said.

Under the plan, Citra Moda has proposed that the foreign
companies supplying the light-rail transit (LRT) system cooperate
with PT Inka, a state-owned rolling stock producer.

"It is very important that we get a good price on imported
materials for the LRT," Fariza said. "PT Inka has extensive
experience in providing rolling stocks for Perumka."

For its signaling system, state-owned electronic producer PT
LEN and PT Barata Indonesia, a state-owned hardware, tool and
equipment supplier, will be joining the project, he added.

"As for the budget, we are avoiding the use of foreign loans,
because it will only be an additional burden during this
turbulent time. Currently we are using the equity portion and
will encourage more investors to join the project."

When asked about reports that some plants on land in Bendi,
South Jakarta, near the planned project, were pulled out, Fariza
said the plants were moved due to construction work.

"But we have replaced the plants and already provided another
plot," he said, refusing to elaborate further.

Reports said the plants were under the supervision of the City
Park Agency as part of a regreening campaign. (edt)

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