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Council OKs changes to MRT project, Jakpro
Ready, set, go: Workers place signage about construction work for the Mass Rapid Transit (MRT) on Jl
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Ready, set, go: Workers place signage about construction work for the Mass Rapid Transit (MRT) on Jl. M.H. Thamrin in Central Jakarta on Wednesday. The project will kick off in October and is expected to cause traffic congestion. (JP/Ricky Yudhistira) (MRT) on Jl. M.H. Thamrin in Central Jakarta on Wednesday. The project will kick off in October and is expected to cause traffic congestion. (JP/Ricky Yudhistira)
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span class="caption" style="width: 510px;">Ready, set, go: Workers place signage about construction work for the Mass Rapid Transit (MRT) on Jl. M.H. Thamrin in Central Jakarta on Wednesday. The project will kick off in October and is expected to cause traffic congestion. (JP/Ricky Yudhistira)
The City Council passed revisions to the bylaws on the formation of the city-owned PT Mass Rapid Transit (MRT), the capital participation of the city administration in PT MRT, as well as the capital participation of the city's construction firm PT Jakarta Propertindo (Jakpro), all on Wednesday.
In a plenary session, councilor Perdata Tambunan from the Democratic Party (PD) said Bylaw No. 3/2008, as the legal basis of the formation of PT MRT, and Bylaw No. 4/2008 on the administration's capital participation of PT MRT, were outdated and needed to be revised.
'The basic capital of the firm was initially Rp 200 billion [US$17.4 million] when the bylaw was written. It has now increased to Rp 14.65 trillion with additional funds from the city budget,' he said.
The funding of the MRT has also come from grants and loans to be included in the 2013-2025 state budget. In the old bylaw, the funds came from the 2008-2024 state budget.
He added that the project, set to connect Lebak Bulus in South Jakarta to the Hotel Indonesia traffic circle in Central Jakarta, would also be funded by a ¥125 billion soft loan from the Japan International Cooperation Agency (JICA).
The central government has agreed to repay 49 percent of the loan from JICA while the administration will pay the rest over a loan period of 40 years, a grace period of 10 years and at an interest rate below 1 percent per year.
The first phase of the project will build a track that has six underground stations, seven elevated stations and a capacity of 173,000 passengers per day. This first phase of work requires Rp 3.6 trillion (US$370.8 million).
Perdata said the council hoped the bylaws could speed up project development as the MRT was an essential form of public transportation that the city required.
'We hope the construction can be started soon,' he said, adding that the firm also needed to familiarize the project to the public.
The MRT's construction will be launched in Dukuh Atas in Central Jakarta in October.
The City Council also approved Bylaw No 12/2004 on the administration capital participation on PT Jakpro, in which Jakpro will receive an additional Rp 750 billion to be able to hold an initial public offering (IPO) and start a new water treatment plant business.
