President's son to take part in subway project

JAKARTA (JP): Bambang Trihatmodjo will join the Indonesian group of investors in Jakarta's first subway project from Blok M in South Jakarta to Kota in West Jakarta.

Bambang, the second son of President Soeharto, told reporters yesterday that he intends to participate in the 14.5-kilometer project and he has sent a proposal to the city administration.

"I am interested in the project and the governor supports the idea. He said that it will be better if more investors join the group," he said after meeting Governor Surjadi Soedirdja.

Bambang, who is also the president director of the Bimantara group, refused to name the company which will represent him in the project.

The head of the city development plan board, Budiharjo Suksmadi, said that the city administration is still reviewing the proposal.

"We are still reviewing the proposal and it should be discussed with other investors in the Indonesian Japan European Group," he said.

Budiharjo explained that an agreement between Indonesian Japan European Group and the city administration stipulates that all investors should be notified of the proposal and all of them must approve it.

Indonesian Japan European Group is a consortium which was formed to finance the project's basic design, which will cost US$8 million. The total cost of the project is estimated at Rp 1.5 trillion.

The Japanese companies in the consortium are led by the Itochu Corp. and the European firms by Ferrostaal AG of Germany.

The Indonesian investors consist of PT Bakrie Investindo, a subsidiary of the Bakrie Group, PT Pembangunan Jaya, PT Lippo, PT Bukaka/PT Kuda Perkasa, PT Suthamthabie and PT Steady Safe.

The funds invested in the basic design's preparation will become part of the investors' equity in the project.

The proposal from Bambang was filed after PT Citra Lamtoro Gung Persada, which is owned by his sister Siti Hardiyati Rukmana, rejected an offer made by the Indonesian investors to join the project.

The head of the company's public relations department, Fariza Y. Irawady, said that the company never had any intention of joining the subway project.

"We were not interested in the project to start with because we want to concentrate on other transportation projects like the triple-level transportation system," Fariza said.

A triple-level transportation system is an elevated railway system combined with toll and artery roads. The company plans to build the system from Bintaro in South Jakarta to Kota in West Jakarta.

Meanwhile, Budiharjo also said that the president of Itochu Corp, Takashi Yamamura, has reported that the basic design of the subway will be completed by the end of August as scheduled.

He said by September further negotiations on investors' equity and the company to handle the subway can be started.

"The negotiations will exclude the ownership of the actual tunnel because it will belong to the city administration," Budiharjo said. (yns)