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Jakarta Post

City, ministry, PT KAI ink deal on property development

The city administration, the Transportation Ministry and state-owned railway operator PT KAI have signed an agreement, marking official cooperation between the three parties to develop PT KAI’s assets in the capital

Sita W. Dewi (The Jakarta Post)
Jakarta
Sat, October 4, 2014

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City, ministry, PT KAI ink  deal on property development

T

he city administration, the Transportation Ministry and state-owned railway operator PT KAI have signed an agreement, marking official cooperation between the three parties to develop PT KAI'€™s assets in the capital.

PT KAI and the city will benefit from each other'€™s authority to reach their respective goals, with the city using its authority to relocate squatters occupying the railway company'€™s assets in the capital and PT KAI allowing the city to build low-cost apartments on its dormant land.

Deputy Governor Basuki '€œAhok'€ Tjahaja Purnama, PT KAI president director Ignatius Jonan and the Transportation Ministry'€™s railway director, Gen. Hermanto Dwi Atmoko, signed the memorandum of understanding (MoU) at City Hall on Wednesday.

'€œWe have agreed to create a master plan on the development of integrated blocks, which will include vertical housing, commercial areas and public transportation. With the cooperation between the city, the Transportation Ministry and PT KAI, we aim to free railway tracks between Kota railway station [West Jakarta] and Manggarai railway station [South Jakarta] and at crossings in the capital,'€ Ahok told reporters after the signing.

The railway stations and other areas that are targeted for the project'€™s first phase include railroad between Mangga Besar station and Sawah Besar station, Jayakarta station and Mangga Besar station and areas below the overpass running through Mangga Besar station-Jayakarta station-Mangga Dua station.

The project aims to clear these areas of shanty homes, which are deemed dangerous and accident-prone, and relocate their residents to low-cost apartments. According to Ahok, more than 6,000 people have died over the past few years due to accidents on railroads or crossings.

Hermanto pointed out that the illegal dwellings also increased risks that threatened railway safety.

'€œThree years ago, there was a fire in Mangga Dua and from then on, we started to crack down on illegal buildings, particularly those built under overpasses, despite the objections of local residents,'€ Hermanto said.

  • MoU offers mutual benefits to PT KAI and the city administration
  • Land along rail tracks will be cleared of shanties, PT KAI offers dormant land for low-cost apartments
  • City will also develop public facilities, green spaces in railroad areas

He added that railway assets should be used solely for activities relating to the railway.

'€œThe number of railway passengers [in Jakarta] has reached 700,000,'€ he said.

Ahok added that PT KAI had also agreed to offer some of its property for the city'€™s infrastructure projects.

'€œThey will open up their plots of land in the capital for the construction of low-cost apartments,'€ he said, without disclosing further details.

'€œThis is just the beginning. We have yet to discuss the finer details; we have to calculate everything first,'€ Ahok said, adding that the authorities would discuss all the outstanding points at follow-up meetings.

PT KAI also aims to develop commercial areas integrated with the low-cost apartment blocks.

Aside from these programs, the city also plans to construct other public facilities, including thoroughfares and inspection roads. '€œWe will also establish green spaces,'€ Ahok said.

The city administration plans to transform areas under elevated railroads into green spaces.

Jakarta Parks and Cemetery Agency head Nandar Sunandar said the agency had so far planted 200 trees under elevated railway tracks.

The agency plans to plant trees along 23 kilometers of rail tracks.

'€œWe have yet to determine the budget, but I estimate that we will need Rp 6 billion to plant trees every 3 kilometers,'€ he said, adding that his agency would team up with the Public Works Agency to develop public facilities in the areas.

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