Business

Abandoned monorail plan
to be revived

The government will continue the construction of a monorail in Jakarta under a new deal after the initial project was abandoned in 2008 due to financial problems, an official has said.

The project, along with a new mass rapid transit (MRT) system and the revitalization of existing railways, is expected to help solve worsening traffic problems in the capital, Dedy S. Priatna, deputy of infrastructure at the National Development Planning Agency (Bappenas), told reporters Wednesday.

Under these new transportation development plans, the monorail is expected to start operation in 2015.

In March 2008, developer PT Jakarta Monorail abandoned the project due to legal and financial problems, leaving a series of  concrete pillars like monuments along roads in Senayan, Central Jakarta, and Kuningan, South Jakarta.

“This March there should be a decision whether [the Jakarta administration] should pay the money [for the initial construction] to Jakarta Monorail. The updated plan to build the monorail should be completed in August,” he said.

“It should be finished by 2015 or 2016,” he added.

The decision to reach an agreement between the Jakarta administration and Jakarta Monorail will be made after an audit by the Development Finance Comptroller, supported by foreign legal experts and Bappenas is completed, he said.

There are three alternatives on funding the project, he said. First, funding and management by the private sector, as originally proposed. Second, that central government finance it up to 42 percent with the Jakarta administration taking up to 58 percent. Third, that central government fund the track while  the rest (trains and stations) would be funded by the private sector, on the lines of a public-private partnership.

Dedy indicated the third option would be the most feasible. The first option would likely experience the same problem as before, while the second could face difficulties due to limited funding.

Under the initial design, the monorail would cover 27.8 kilometers, consisting of a 14.3-kilometer route connecting Semanggi and Kuningan in South Jakarta, and a 13.5-kilometer route connecting Kampung Melayu in East Jakarta and Taman Anggrek in West Jakarta.

The project, which could transport up to 120,000 passengers per day, would cost US$484 million.

Meanwhile, the development of the proposed MRT system will begin in 2012, to be finished in 2017 or 2018, said Dedy. “It will connect Lebak Bulus [in South Jakarta] and Dukuh Atas [in Central Jakarta]. Then the construction will continue to Kota [in West Jakarta],” he said.

The cost of the MRT may be more than $650 million, depending on the design, he said.

Dedy also said PT KAI Commuter Jabodetabek (KCJ) had also estimated that it would need Rp 27.5 trillion (US$2.97 billion) to revitalize the suburban railways in  Greater Jakarta, in order to complete proposed urban transportation plans.

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