Triple-tier project funding uncertain

JAKARTA (JP): City councilors urged the developer of the triple-tier transit system yesterday to reveal who will finance the Rp 6.2 trillion (US$730 million) project.

Helmy AR Syihab of the United Development Party faction said City Council should be informed of the sources of funds for the system, which would link Bintaro in South Jakarta to downtown Kota in West Jakarta

"It is important for the developer to explain where and how they will obtain the funds," he said.

Rusdji Hamka, one of the council's deputy chairmen, said an assurance that the developer could bankroll the mega-project was crucial.

"We still haven't been informed about the sources of funding during this time of (economic) crisis," he said.

"I'd say they'd be better off not trying to push ahead and complete the project during the crisis."

Helmy said the developer should also discuss the possibility of involving the city administration in the project by giving it an opportunity to own a share.

"Of course, the administration will not be able to buy its share in cash," he said.

"But I think the developer could let the administration have an interest to compensate for the city-owned land and properties to be used or demolished for the project."

Lukman Mokoginta of Commission D for public works, development and environmental affairs shared Helmy's view and insisted that the municipality have a stake in the project.

"The administration must be involved in the discussion and the calculation of the project together with the two state-owned companies Perumka and PT Jasa Marga which are involved in the joint venture," he said.

"It should know all about it, from the costs to the point it breaks even."

However, Lukman said the urgent completion of the project's environmental impact analysis (Amdal) by the developer was far more important than explaining its financial readiness.

"The developer is a private company. If it is confident that it has all the money needed to finance the project, then go ahead."

He said the sooner the project started, the better.

"The launch of the project during this time of crisis will help provide job opportunities for hundreds of people out there," Lukman, who represents the Indonesian Democratic Party faction, said.

"The developer must publish its Amdal because the people have a right to know exactly what the developer will build, what will happen to their land and what the costs and benefits of the project are."

Helmy said the developer had given hardly any information to the public regarding the project, which was scheduled to start operating in 2001.

"Many people still have no clear picture about the project, such as what it will be like or what areas will be used for it," he said.

"They don't know much about the project which will actually use the land on which their houses stand.

"Lack of information will just create chaos and resistance when the developer later asks people, whose land and properties will be affected by the project, to move away."

The triple-tier system will combine 23.65 kilometers of toll roads, 22 km of light-rail tracks and existing roads.

The project will be developed jointly by PT Citra Lamtoro Gung Persada, a company owned by Soeharto's eldest daughter who is also the Minister of Social Service, Siti Hardijanti Rukmana, the state-owned railway company Perumka and the state-owned highway corporation PT Jasa Marga under the company flag PT Citra Moda Margakencana Persada.

Helmy and Rusjdi said the City Council was still uncertain whether the project would be continued as the developer had yet to provide further information on the groundbreaking ceremony.

The ceremony was postponed for the third time in February due to the city's preparations for the General Assembly in March. (cst)