MRT project to be reviewed, not called off: Governor

Novia D. Rulistia, The Jakarta Post, Jakarta | Headlines | Fri, October 19 2012, 10:21 AM

Paper Edition | Page: 2

Jakarta Governor Joko “Jokowi” Widodo says that his administration has no plans to cancel the Mass Rapid Transit (MRT) system despite his intention to review the project.

He insisted that he and his deputy, Basuki “Ahok” Tjahaja Purnama, only wanted to review the project to better understand the capital’s planned MRT system.

“The MRT and monorail will be executed immediately, but I want to see the financing scheme first,” the governor said at City Hall.

On Wednesday, Basuki told reporters that the governor had ordered a review of the multi-billion dollar MRT project, which the governor considered “too expensive”.

The deputy governor also said that it was possible the MRT project would be postponed if it was found out to be overpriced, adding that there were other alternatives for mass transportation.

Jokowi said that if the project was too costly, and thus a burden to the people, he would try to negotiate for more affordable prices. “For the MRT, I basically don’t want it to burden the people. I must see the presentation first and the most important thing, the price,” he said.

“If it does not become a burden, then we should go on. This is also the case with the monorail, as long as it doesn’t become a burden.”

The total cost of the MRT project is estimated to be ¥144 billion (US$1.8 billion). Most of the project’s cost will be covered by a ¥120 billion soft loan from the Japan International Cooperation Agency (JICA).

Transportation expert Agus Pambagyo warned the administration against delaying the construction of the MRT as it would cause losses for all. “The city administration and the central government will have to pay interest and a penalty if the project is delayed, because the funds to finance the project are a loan,” he said.

Deddy Priatna, the National Development Planning Board (Bappenas) deputy chairman for infrastructure, said that the value of the project had been estimated well, ensuring that it would not overburden the city.

“It has been calculated well with the consultant from Singapore. It has covered all aspects, including the inflation rate, so it is actually very affordable,” he said.

“In addition, it will not be that easy to cancel the project because it is a national project.”

The first phase of construction on the MRT project, which comprises a central station, depot and a line connecting Lebak Bulus in South Jakarta to the Hotel Indonesia traffic circle in Central Jakarta, is expected to begin before the end of the year and is to be completed by 2016.

The 15.5-kilometer-long route is planned to include six underground stations and seven above-ground stations.

City-owned PT MRT Jakarta has begun initial underground work for the MRT as the tunnels for the first phase are scheduled to four years to complete, compared to the two years needed for the above-ground sections.

Amid questions about the project, the company’s spokesperson Manpalagupta Sitorus said that the company was still working on the project. “The project is still on. But if there’s a change, as an executor, we will just do as we’re told. But as it’s a multi-institution project, there should be an agreement from all related parties,” he said. “But we’re ready if the governor wants us to explain the project.”

To immediately solve Jakarta’s chronic traffic congestion, Jokowi also said that he wanted to revive the monorail project after meeting with State-Owned Enterprises Minister Dahlan Iskan on Monday.

PT Adhi Karya, the state-owned construction company that proposed the revival of the monorail project, will present its proposal to Basuki on Friday. The proposed 60-kilometer-long monorail network is estimated to cost a total of Rp 60.55 trillion.

Former governor Fauzi Bowo dropped the project in 2011 after the developer, PT Jakarta Monorail, stopped construction in 2008 due to financial and legal problems.