Subway project to start April if decree issued

Subway project to start April if decree issued

JAKARTA (JP): Construction of the Mass Rapid Transit (MRT)
project would start in April although the presidential decree for
the project was yet to be issued, TB. M. Rais, the vice governor
of Economic and Development Affairs said yesterday.

Although the construction cannot start without the central
government authorization, Rais expressed optimism that the
construction would start soon.

"We still have several months before April, so hopefully it
will be issued before then," he said after a financial proposal
meeting of a consortium involved in the project.

Noted businessman Aburizal Bakrie heads the local companies in
the Indonesian Japan European Group consortium.

Yesterday the group told the city the project would cost Rp
4.5 trillion (US$1.89 billion), an increase on the initial
estimate of $1.5 billion.

Rais said although the figures might pose financial risks to
the city, the proposal would be studied.

Rais' optimism was backed by Aburizal of PT Bakrie Investindo,
the head of the consortium. Sounding optimistic, Aburizal said
the construction could start as soon as the basic design was
completed.

"Insya Allah (if God permits) if the presidential decree is
issued within three months, construction will start soon," he
said, adding that the subway system could be finished by Aug. 17,
2001, Indonesia's Independence Day.

The 14.5-kilometer underground subway is an initial step in
the plan to ease traffic congestion. The 17-station subway will
connect Blok M in South Jakarta and Kota in West Jakarta.

The city and the consortium, which includes local companies
and firms from France, Canada, Japan, the United States, Germany,
and Australia, signed a memorandum of understanding (MOU) in
August 1995.

Last July President Soeharto's son, Bambang Trihatmodjo,
joined the consortium. Today he is scheduled to sign an MOU at
City Hall.

The presidential decree for the project was initially expected
last year. Both Rais and Bakrie could not explain the reason for
the delay. The decree is also essential to enable the city to
draw additional funds from the public purse.

Rais said the city and the consortium would keep discussing
the technical and financial aspects of the project while waiting
for the decree.

Under consideration is raising funds by requiring motorists
who pass the subway route before and during construction, to pay
congestion or peak-hour fees.

Another alternative to the subway which has been proposed, is
an elevated railway system. Earlier Rais said the municipality
was yet to receive detailed designs from the business group which
proposed it, the Citra Group, which is led by noted businesswoman
Siti Hardiyanti Rukmana. (02)