Subway project to start next year

JAKARTA (JP): Governor Sutiyoso said on Wednesday the city administration would begin construction on the proposed Fatmawati-Kota subway next year.

"We hope the project, which has been postponed, can start next year," Sutiyoso said at City Hall.

He said the city administration would ask whether the Indonesia-Japan-Europe Group still was interested in financing the project.

The consortium includes 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 governor said an open tender would be held to select who would win the right to construct the 15-kilometer subway line.

Sutiyoso said he would meet with President Abdurrahman Wahid to discuss the financing of the project, most of which is expected to come from the Japanese government.

"I will meet the President. As we all know, President Abdurrahman has just visited Japan," he said.

The governor said the land for the project would be appropriated fairly.

"The land will be appropriated according to the market price," he said.

Noted economist Sri Mulyani of the University of Indonesia's Institute for the Development of Economy and Management, however, suggested the city administration postpone the project, saying it was not urgent for the city's development. (jun)