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)