Sutiyoso backs ITC's bid in monorail deadlock
Sutiyoso backs ITC's bid in monorail deadlock
Damar Harsanto, The Jakarta Post/Jakarta
Governor Sutiyoso said on Friday that his administration agreed
with PT Indonesia Transit Central (ITC)'s decision to pick local
companies to supply trains for the monorail project.
"It means cheaper monorail tickets, no investment burden to be
shouldered by the administration, and benefits for local industry
as well," he argued.
He was referring to a proposal made by the Indonesia
Consortium of Monorail Industries (ICMI), led by the Bukaka Group.
The local consortium will use Siemens technology, which it
says is cheaper compared to the magnetic levitation (Maglev)
technology offered by South Korea's Rotem.
ICMI, which also includes state rolling stock maker PT
INKA and state electronics firm PT LEN Industry, has proposed Siemens
technology at an estimated cost of $496 million, while Rotem's
Maglev technology would cost $540 million, excluding bank and consultants'
fees, which the ITC claims would bring the total investment
required to a mammoth $826 million.
Sutiyoso admitted that ITC's partner, Omnico Pte Ltd of
Singapore, had recommended the use of the sophisticated but
costly Maglev technology provided by Rotem, and that Omnico
had also managed to convince a leading bank in South Korea to
underwrite the development of the monorail.
"But, it (the bank) requires too much, such as additional
space for property developments and revenue from the
implementation of electronic road pricing (ERP). Of course, we
could not entertain such demands," he said.
He added that the requirements would only burden the
administration and taxpayers, with the administration having to
provide development space and residents having to pay higher
ticket prices.
ITC director Sukmawaty Syukur said that Omnico had targeted
obtaining additional revenue from property development of up to
Rp 1.5 trillion annually aside from the revenue generated by
ticket sales.
It also targeted securing 60 percent of the revenue from ERP,
totaling $100 million per year.
Separately, Bovanantoo, the monorail's chief project officer,
said that property consultants Jones Lang LaSalle estimated that
the commercial developments connected to the monorail, like
retail outlets and advertising at stations and pedestrian
bridges, would only generate Rp 80 billion per year.
"Additional income from commercial developments is vital as
the revenue we obtain from ticket sales will only cover 20
percent of total operating costs," he said.
Construction of the monorail commenced in June last year and
is expected to be finished in 2007.
The monorail will cater to transportation needs in prime
commercial areas through a 14.3-kilometer line, and another 13.5-
kilometer line from Kampung Melayu in East Jakarta to Taman
Anggrek Mall in West Jakarta.