The Jakarta Globe, Muhamad Al Azhari, March 26, 2009
The development of Jakarta’s long-delayed mass rapid transportation system, or MRT, appears to be gathering steam, with a Finance Ministry document revealing that Indonesia and the Japan International Cooperation Agency are set to sign a deal on Tuesday that would set aside 48.15 billion yen ($491 million) in low-interest loans for the project.
The deal represents part of JICA’s 120-billion-yen commitment to finance 85 percent of the transportation system, which the municipal government hopes would help solve the capital’s traffic problems.
The funds from JICA are being provided under the Special Terms for Economic Partnership, a soft loan scheme, and will be divided into four disbursements.
The first tranche, agreed to in June, amounts to 1.86 billion yen. On Wednesday, the central government gave 758 million yen as part of this tranche to the Jakarta administration to pay for consulting services and an equity stake in PT Mass Rapid Transport Jakarta, which will develop and operate the project.
“This grant shows the commitment of the central and local governments to develop infrastructure amid the global [financial] crisis,” Jakarta Governor Fauzi Bowo said at a ceremony to mark the release of the grant to the Jakarta administration at the Finance Ministry’s headquarters.
“We expect this project will progress smoothly and that people will reap the benefits,” Fauzi added. “Having [the MRT] in our city is not just a dream. This is real and it should be available as soon as possible.”
The first part of the MRT is expected to link Lebak Bulus in South Jakarta to Dukuh Atas in Central Jakarta with a 14.5 kilometer rail network built both underneath and above the ground.
The second part will connect Dukuh Atas to Kota, also in Central Jakarta, and the third will link East and West Jakarta. Both the second and third phases are still undergoing feasibility studies.
Unlike Kuala Lumpur, Singapore, Bangkok and other regional capitals, Jakarta has no subway or light-rail system, resulting in the city’s trademark traffic jams.
The idea of building an MRT system in Jakarta was first put forth in the 1980s. Former President Suharto’s government also pushed unsuccessfully for the project in 1995. The proposal was revived by former Jakarta Governor Sutiyoso in 2002, but it was not until 2006 that JICA and the government finally agreed on funding and logistics.
Another mass transport project, the Jakarta monorail, has been in limbo since financing fell through in late 2007.
And despite the recent progress on the MRT system, Jakarta residents may still have to wait a while.
Tenders for the project may not begin until the end of 2010, with construction not scheduled to start until early 2011. The system itself is expected to be operational by early 2016.
Related Article:
Finance Minister: People still waiting for MRT
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