Saudi investment expected for project
Saudi investment expected for project
JAKARTA (JP): The city administration expects Saudi investors
to channel up to US$850 million into a subway or triple-decker
road and railway project that is hoped will ease traffic woes.
Governor Sutiyoso said at City Hall on Thursday he had read
about the possible investment in the city's road system, and was
hopeful the investors would soon realize the plan.
"If it is true, we hope that the money can be used for the
subway or triple-decker project, which are really needed by the
city," Sutiyoso said.
Presidential spokesman Yahya C. Staquf said on Wednesday that
Saudi Arabian investor Albandari Abdul Azis planned to invest
$850 million for a road network project in the capital.
"President (Abdurrahman Wahid) has asked Minister of
Settlement and Regional Infrastructure Erna Witoelar to take care
of the investor," Yahya said.
Sutiyoso said he had not been consulted or informed about the
potential investment. Nevertheless, he said he hoped Erna would
soon invite the city administration to join discussions on the
project.
"I hope we will be invited to discuss the project, if it's
really true. We're really surprised about this news," he said.
Separately, City Council deputy chairman Djaffar Badjeber said
he heard about the potential investment directly from the Saudi
investors.
"The businessmen told me that they wanted to invest here, but
Indonesia seemed to be interested only in inviting investors from
America or Japan," Djaffar, who is a member of the United
Development Party (PPP), said.
He said the businessmen wanted to help Indonesia, which has
the largest Muslim population in the world.
Nevertheless, the investors want the central government to
simply the investment regulations and make them consistent, he
said.
Djaffar said if the road network project was realized, it
should be conducted through an open tender, adding that the
council should be involved in discussing the project.
"Since it deals with the interests of the general public, the
council should be involved," he said.
The city administration has for some time planned to build a
$1.5 billion subway system running from Fatmawati in South
Jakarta to Kota in West Jakarta.
It signed a memorandum of understanding in 1995 with the
central government and an Indonesian-Japanese-European consortium
to build subway.
The consortium included Japanese companies led by Itochu
Corp., European firms led by Ferrostaal AG of Germany and
Indonesian firms led by PT Citra Lamtorogung, PT Bukaka Teknik
Utama, PT Bakrie Investindo, PT Pembangunan Jaya, PT Lippo, PT
Suhamthabie and PT Steady Safe.
The basic design of the project was completed in 1996. But
when the economic crisis struck the country in the middle of
1997, the project was put on the back burner, along with several
other large projects in the country. (jun)