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T Jakarta Monorail (PT JM) revealed that based on its agreement with the city administration, it has won a concession for 30 years and another 10 year optional extension to build, operate and implement (BOT) the mode of transportation.

JM president director Sukmawati Syukur said on Thursday that the agreement referred to the old one signed in 2004.

Sukmawati said the agreement also stated that there was no financial guarantee from either the city administration or the central government on the project.

'Hence, the investors have calculated that it is commercially adequate to continue developing the project,' she said.

The reinstated JM project initially stalled in 2007 due to financial issues. The project, initiated in 2004, will comprise two lines: a green line, with 16 stations, extending 14.3 kilometers from the city police headquarters (Komdak) to Satria Mandala Museum, both in South Jakarta; and a blue line stretching 13.7 kilometers from Kampung Melayu in East Jakarta to Grogol in West Jakarta, with 14 stations. The company is expecting the project to be completed by 2016.

Jakarta Monorail (JM) will collaborate with China Communications Construction Company Ltd. (CCCC) and has signed an agreement for the project's funding, design and construction.

CCCC has agreed to invest US$1.5 billion in the monorail project as well as fund the construction of a monorail assembly plant in Indonesia.

The joint venture will involve CCCC in designing and building the monorail as well as developing an integrated transit system. Furthermore, JM and CCCC will build a plant for the maintenance and assembly of the monorail cars, some of which will be imported from China.

Sukmawati said the city administration would only provide support through issuing license, rights to build and operate, as well as other intangible assistance in seeing through the administrative or bureaucratic processes.

'Our firm will depend on non-farebox revenue from income sources like media revenue and property development around our 30 stations,' she said.

She added that JM would cooperate with local property companies who owned property or land around the stations.

Sukmawati said her firm also could determine its own tariff when an initial ticket price and a formula to increase the tariff was agreed.

'Now our average tariff range in 2016 will be US$1 JM technical director Bovanantoo said on Friday that the company was now drilling four spots at the Monument 66 in Kuningan, South Jakarta, where the groundbreaking ceremony took place.

'We will begin a loading test in the near future,' he said, adding that they were also preparing for the construction of the 30 stations as well as making a mock up for the rail bedding.

Bovanantoo said his company made a proposal to integrate the monorail system with the Mass Rapid Transit (MRT) in order to encourage commuters to take public transportation.

'Both directors will meet to discuss further the concept of Transit Oriented Development (TOD) in the construction of the two projects,' he said.

He said that in the Dukuh Atas area in Central Jakarta, for example, there should be an integrated system to connect stations of MRT, Monorail, Transjakarta bus and electric commuter Line.