Subway? Maybe not this year, Habibie says

Subway? Maybe not this year, Habibie says

JAKARTA (JP): The subway project will not go ahead until
financial backing is confirmed, a minister said, contradicting an
earlier announcement that the project would begin in June.

State Minister of Research and Technology B.J. Habibie said
yesterday the project might not be realized in June as was
announced by Aburizal Bakrie, chairman of the consortium of local
and foreign firms funding the huge project, on March 4.

Aburizal Bakrie was quoted Thursday withdrawing his earlier
statement.

He told the Kompas daily "everything is still under discussion
between the government and private investors," and declined to
say whether construction would begin this year.

The consortium includes local companies PT Bakrie Investindo,
PT Pembangunan Jaya, Lippo Group, PT Bukaka Corporindo and PT
Steady Safe, and companies from France, Canada, Japan, the United
States, Germany and Australia.

Habibie said yesterday it might not start this year because "I
have not seen a concrete offer of independent financing". Habibie
chairs the subway project's steering committee.

"We really have to prepare everything, not only for the
subway," he said. All other transportation projects like the
three-level transit should also provide their own funding, the
government could not be expected to give financial assistance, he
added.

"This was also what Pak Soeharto said," Habibie said after
witnessing an agreement between the Connecticut Children's
Medical Center and the Harapan Kita hospital, where he is deputy
on the board of trustees.

Initial proposals from the subway's management project unit
said some of the funds could come from new and increased taxes
and fees. But city officials later said they would wait for the
new law on taxes and fees.

Minister of Transportation Haryanto Dhanutirto has yet to
comment on the matter.

Habibie implied the project would not need a presidential
decree although officials had initially said it would. He said a
decree might be issued for a long term transportation program,
not for the subway project alone. "Long term plans should not
block short range ones," he said.

"I have suggested the President issue a decree for
transportation in general, regarding the use of energy," he said.

He added transportation solutions should not use too much
energy.

"Trains from Jakarta, Surabaya and others still use diesel
fuel. The subway will obviously use electricity. If possible all
(trains) should use electricity because then we could use coal
(for energy), for instance," Habibie said.

"Whether we like it or not, the subway will come to Jakarta.
Because no city as big as Jakarta can manage urban transport
without a subway," he said.

But the city would also need solutions like the three-level
transit, which would include a toll road and elevated railway, he
said.

Officials and representatives of the business sectors
proposing the subway and the three-level transit have played down
the question of which is the best alternative for Jakarta, saying
they are complimentary.

Last week a meeting on financial proposal for the subway was
attended by the subway's consortium, city officials and ministers
Habibie, Minister of Transportation Haryanto Dhanutirto and
Minister of Public Works Radinal Moochtar. They all declined to
comment.

The latter two ministers have issued permits to build a three-
level transit, to PT Citra Lamtoro Gung Persada and Group. Its
Chief Executive Officer Bambang Soeroso said the project could
begin in April, but Bambang said they would see if a presidential
decree was needed first. (anr)