The long-anticipated monorail project is ready to begin as two former partners in the project consortium, PT Jakarta Monorel (JM) and state-owned construction firm PT Adhi Karya, have reached an agreement to settle debts between the two companies.
Adhi Karya president director Kiswodarmawan confirmed that PT JM agreed to pay Rp 190 billion (US$19.52 million) to take over supporting pillars the company built when it held a 7.5 percent stake in PT JM.
“Yes, we have agreed on the deal [of Rp 190 billion]. The figure is based on present value,” he told The Jakarta Post on Wednesday.
The figure was slightly lower than the Rp 193 billion Adhi Karya initially demanded.
The debt was related to the construction of supporting pillars along roads in the Senayan area in Central Jakarta and Kuningan in South Jakarta. The pillars were part of the first phase of construction on a 14.3-kilometer long monorail track that would have connected Kuningan and Semanggi in Central Jakarta. However, construction stalled in 2007 after PT JM failed to pay Adhi Karya for the work.
Adhi Karya appointed public auditor KJPP Amin, Nirwan, Alfiantori & Partners (KJPP ANA) to assess the value of the supporting pillars.In early February, the auditors announced that as of Jan.31, the pillars were worth Rp 193.66 billion (US$19.95 million). PT JM, however, agreed to pay only Rp 130 billion based on an evaluation conducted by the Development Finance Comptroller (BPKP).
Governor Joko “Jokowi” Widodo said that he had heard about the deal and was now waiting for the documents before he gave a go-ahead for the construction project.
“I received the news yesterday afternoon but I have yet to receive the documents. After I examine the documents, I can approve them and construction work can begin the following day,” Jokowi told reporters at City Hall.
PT JM previously said that it had planned to begin construction in April as the governor had set a deadline of early next year for the monorail’s launch.
The consortium is proposing to build two lines: a green line and a blue line. The green line, which will have 16 stations, will extend 14.27 kilometers from Komdak to Satria Mandala Museum, both in South Jakarta. The blue line will cover 9.72 kilometers, from Kampung Melayu in East Jakarta to Roxy in West Jakarta, with 11 stations. The project is estimated to cost $725.59 million. (ebf)