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)