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Jokowi wants to cut cost of MRT, vows personal budget review

Jakarta Governor Joko “Jokowi” Widodo says that he wants to cut the cost of the city’s Mass Rapid Transit (MRT) project, amid speculation the project may be postponed for a monorail

The Jakarta Post
Jakarta
Tue, October 23, 2012

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Jokowi wants to cut cost of MRT, vows personal budget review

J

akarta Governor Joko “Jokowi” Widodo says that he wants to cut the cost of the city’s Mass Rapid Transit (MRT) project, amid speculation the project may be postponed for a monorail.

“I need to know the details of the contract,” Jokowi said after a meeting with Tribudi Rahardjo, the president director of city-owned PT Mass Rapid Transit Jakarta, and city officials on Monday.

“It’s not about whether we will continue or discontinue the project. I asked them [PT MRT Jakarta] to provide a detailed financial scheme and a budget comparison to other MRT projects in countries like Singapore for example,” Jokowi said.

“I will check and control the budget by myself, including the standardization of the construction materials. I told them to cut [the budget],” the governor said. “I want it reduced.”

The total cost of the project has been estimated to top ¥144 billion (US$1.8 billion), with ¥120 billion to be covered by a soft loan provided by the Japan International Cooperation Agency (JICA).

Jokowi said that the administration was still listening to input from PT MRT Jakarta and transportation observers.

“No decisions have been made. I was only listening and asking them questions [during the meeting]. I have to compare their plan with the opinions of transportation observers and the public,” the governor said.

Tribudi said that the fate of the project, which is considered as crucial for solving Jakarta’s chronic traffic problems, now rested in Jokowi’s hands.

“The city administration is the implementing agency and the [Jakarta] Transportation Agency is the executive agency. Whatever decision is made by the governor, we will obey,” Tribudi said.

Representatives of PT MRT Jakarta will also meet with the Jakarta Economic Agency to discuss the project’s budget, according to Tribudi.

He admitted that the review would likely cause delays in the MRT’s construction, adding that delays would not be a problem.

“We can still speed up the construction process,” he said.

However, Selamat Nurdin, a representative of the Jakarta Legislative Council from the Prosperous Justice Party (PKS), said that the city administration and the central government would have to pay a fine of Rp 800 million (US$83,200) a day for any delays in the system’s construction.

While Selamat approved Jokowi’s move to scrutinize the project, he also warned the governor against prolonged delays that would be very expensive.

PT MRT Jakarta is planning to begin construction of the MRT’s first phase, a 15.5-kilometer-long route connecting Lebak Bulus in South Jakarta and the Hotel Indonesia traffic circle in Central Jakarta, before the end of this year.

In September, the company announced that two candidates were bidding on the construction tender: the Obayashi-Shimizu-Wijaya Karya and the Sumitomo-Hutama Karya construction consortiums.

Jakarta Transportation Agency chief Udar Pristono, who was also at the meeting, said that the agency was still studying the social impact of the MRT project.

“Our task is to think about the land acquisition, for example, at the Lebak Bulus terminal. We are planning to modify the terminal to become an inner-city bus terminal only, following the planned construction of the MRT,” Udar said.

He added that inter-regional bus terminals would only be located at Kampung Rambutan Terminal in East Jakarta, Pulo Gadung Terminal in East Jakarta and Kali Deres Terminal in West Jakarta after the MRT’s first phase of construction begins.

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