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Jakarta Council postpones additional funds for LRT, public housing
The Jakarta City Council raised concerns that JakPro would not be able to use the funds by the end of this year.
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Workers remove debris after a construction crane used in the construction of the light rapid transit (LRT) fell on a building on Jl. Kelapa Nias Raya, Pegangsaan Dua, in Kelapa Gading, North Jakarta, on Oct. 17 last year. (The Jakarta Post/Bangkit Jaya Putra)
T
he Jakarta City Council budget committee rejected a request for Rp 2.3 trillion (US$154.94 million) in additional funds by city-owned developer PT Jakarta Propertindo during an annual budget readjustment meeting on Thursday.
Jakarta Propertindo, also known as JakPro, requested the funds to continue phase two of the construction of the light rapid transit (LRT) worth Rp 1.84 trillion and to build low-cost housing worth Rp 531.5 billion.
The budget committee rejected the request out of concern that JakPro would not be able to use the funds by the end of the year — a requirement to receive additional funds — as JakPro still needs to secure approval from the Transportation Ministry and the Jakarta Transportation Agency to continue the LRT construction.
Phase one of JakPro's LRT project will connect Kelapa Gading in North Jakarta to Velodrome in East Jakarta.
Furthermore, a 2014 regional regulation issued during former governor Joko “Jokowi” Widow's administration prevents JakPro from receiving more than Rp 10 trillion per year. Given JakPro has received Rp 9.4 trillion this year, it can only receive a maximum of Rp 591 billion in additional funds.
“We will just submit the proposal again next year,” said JakPro director Dwi Wahyu Daryoto as reported by tempo.co, in reference to the 2019 annual budget meeting.
“It’s not that the budget committee 100 percent disagreed with the additional funds. But they asked that we request the funds next year instead of this year,” he added. (nor/evi)
