After a long setback, the Jakarta administration has finally called off the monorail project.
“We will end our contract and make a concession with PT Jakarta Monorail, an investor and developer of the monorail mega project,” Governor Fauzi Bowo said Monday as quoted by Antara news wire.
He added that the administration was developing a format to end its contract with PT Jakarta Monorail.
Fauzi explained his administration had received a recommendation from the Finance and Development Supervisory Agency (BPKB) that the administration could pay a maximum Rp 204 billion in compensation to the company.
The compensation was far lower than the Rp 600 billion demanded by PT Jakarta Monorail.
Fauzi said he would find alternate public transportation that could accommodate more people than the monorail.
The construction of the monorail project was halted in March 2008 by developer PT Jakarta Monorail due to legal and financial problems.
The initial construction left rows of columns along the roads in Senayan, Central Jakarta, and Kuningan in South Jakarta.
The first line of the monorail project was planned as a 14.3-kilometer route connecting Semanggi and Kuningan in South Jakarta, and has a capacity of 120,000 passengers per day.