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Monorail project faces yet more delays
The monorail project is in limbo as Governor Joko âJokowiâ Widodo has yet to sign a renewed contract with the project operator, PT Jakarta Monorail (JM), due to disputed clauses, which makes the ceremony to launch the projectâs construction phase in October last year seem premature
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he monorail project is in limbo as Governor Joko 'Jokowi' Widodo has yet to sign a renewed contract with the project operator, PT Jakarta Monorail (JM), due to disputed clauses, which makes the ceremony to launch the project's construction phase in October last year seem premature.
After a meeting with JM executives at City Hall on Wednesday, Jokowi said the meeting failed to reach any conclusions.
'We discussed the business plan, monorail fares and the project's financial sustainability. It's not clear yet, that's why we are being careful. This is all [mentioned in] the contract, otherwise why would I sign the paper?' he told reporters after the meeting.
Previously, the city administration added a new clause to the contract, demanding that JM pay up to 5 percent of the total investment value of US$1.5 million in performance bonds, which would be taken by the city if the company failed to complete the project within three years.
Deputy governor for transportation Sutanto Soehodho said JM had objected to the amount, asking for leniency from the city.
'They asked for 0.5 percent to 1 percent, but we want it to be above 1 percent,' Sutanto said.
The National Development Planning Board (Bappenas) regulates that performance bonds be set at between 1 and 5 percent of the total investment value.
'For trustworthy companies, the performance bonds can be set at 1 percent, but when in doubt, it can be set to 5 percent. But it's not our authority to assess the company's capacity,' Bappenas deputy for infrastructure Dedi Supriadi Priatna said, adding 'Bappenas recommends that it is set at 5 percent.'
JM president director John Aryananda expressed his optimism over the project's sustainability.
'We have communicated the business plan since the first day we took over the project. We want to ensure the city that the monorail can be operated in accordance with the concession,' John said.
When asked about an unresolved dispute with state-owned PT Adhi Karya, JM's former partner that built and owned monorail support pillars, John declined to comment, saying the company was waiting for the latest assessment result from the Development Finance Comptroller (BPKP).
Adhi Karya, the project's subcontractor, built rows of support pillars along roads in Senayan, Central Jakarta, and Kuningan, South Jakarta between 2004 and 2007.
The pillars were part of the planned first phase of a 14.3 kilometer route connecting Kuningan and Semanggi in Central Jakarta. However, the construction stalled as JM failed to pay Adhi Karya for the work.
Adhi Karya appointed a public auditor to assess the value of the support pillars.
The auditors announced that the pillars were worth Rp 193.66 billion as of Jan. 31, far above the Rp 130 billion JM had initially offered to pay based on an evaluation conducted by the BPKP.
JM proposed to build two routes: the first being the Green Line that will serve Kuningan-Kuningan Sentral-Gatot Subroto-Senayan-Asia Afrika-Pejompongan-Karet-Dukuh Atas-Kuningan. The second route will be the Blue Line, which will serve Kampung Melayu-Tebet-Kuningan-Casablanca-Tanah Abang-Roxy-Taman Anggrek.
Despite the slow progress, Jokowi emphasized he would not appoint another investor to carry out the project, partly to avoid any legal action that would be taken against the city, among other issues.
Deputy Governor Basuki 'Ahok' Tjahaja Purnama, who has frequently expressed his concern over the project's sustainability, responded briefly: 'Wait until I'm the governor,' he said.
