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)