JAKARTA (JP): Finance Minister Sri Mulyani Indrawati gave three years for PT Jakarta Monorail to complete the transportation project in the capital, which will be financed by Dubai Islamic Bank (DIB).
Her statement was made as a follow up to her decree issued on March 15, ruling that the government will cover the financial shortage if the number of passengers miss the minimal target of 160,000 per day.
Ministry's spokesman Syamsiar Said said Monday that under the decree, the government would pay US$11.25 million per year at the most within five years.
He said the ministry also required the Jakarta City Council to approve a regulation ruling that the city administration has to prepare a similar amount of money to cover the possible shortfall before the central government disburses its money.
The capacity of the monorail project is 270,000 passengers per day.
Initially, two lines of the monorail project were scheduled to operate early this year, but concession holder PT Jakarta Monorail found difficulty to find investors to finance the project.
DIB finally expressed its agreement to finance the project with a condition that the government has to cover possible financial shortage.
Analysts expressed pessimism that monorail would be able to meet its minimal target of passengers because the Rp7,500 ticket price per trip is too expensive for most of Jakartans.
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