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lthough construction of the light rapid transit (LRT) line connecting Kelapa Gading in North Jakarta to the Velodrome in East Jakarta has yet to start, city-owned property developer PT Jakarta Propertindo (Jakpro) is considering extending the route to Dukuh Atas in Central Jakarta.

Jakpro president director Satya Heragandhi said recently that while finishing preparations for the physical construction of the first 6-kilometer line for the Asian Games, scheduled to be held in August 2018, his company had also started preparing for the 14-km extended line to Dukuh Atas.

Satya said once the physical construction of the Kelapa Gading-Velodrome line started, his company would focus on the development for the Dukuh Atas line.

“The Asian Games route is barely lucrative for any business scheme. We need more routes to make it economically feasible,” he said.

He added that the extension would enable him to look for other financial schemes for the project from private entities.

 “We have the government investment participation [PMP] of around Rp 5 trillion [US$379.7 million]. We can use it as a guarantee for other loans,” he said, adding that it included Rp 2.95 trillion of PMP this year.

He said he hoped his company could secure business-to-business cooperation with other foreign companies for investment.

“We need at least Rp 14 trillion for the 14-km line,” he said.

Satya said he aimed to start the second phase in March next year. “If we need new regulations, it probably will be delayed until September next year,” he said, explaining that the construction might require a gubernatorial regulation.

He said the company had also asked for the approval of the line from the Transportation Ministry.

Satya said construction of the first 6-km, dedicated to serving participants of the Asian Games, was on schedule.

“The basic design of the line will be completed in July and we are summoning nine state-owned companies that would serve as the potential contractors” he said.

Satya said he hoped all administrative matters could finish next month, allowing the company to start the physical construction in October.

Among administrative matters hampering the project is a change in a presidential decree allowing city-owned companies to directly appoint state-owned contractors for the project without holding a tender.

Time is the enemy for Jakpro in carrying out the project, as it has less than two years to work. It usually takes at least four years to complete such a project. Many have expressed doubt that the project will finish on time and be able to serve the Asian Games.

The company initially planned to build a 24-km loop line connecting Kelapa Gading, Kota Tua in West Jakarta and Dukuh Atas. However, due to limited time and budget, the company prioritized the first 6-km facilitating several venues of the Asian Games, comprising Britama Arena sports mall in Kelapa Gading, the Pulomas horse racetrack in East Jakarta and the velodrome.

Besides administrative matters, the city administration also cut funding for Jakpro given through the PMP scheme.

Separately, Jakarta Financial and Asset Management Board (BPKAD) head Heru Budi Hartono said the city would cut the PMP to Jakpro this year from Rp 2.95 trillion to Rp 1.6 trillion or Rp 2 trillion.