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Lack of interest, pandemic hamper MRT phase 2
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he ambitious, fully underground construction plan for the second phase of the Jakarta MRT is facing a stumbling block resulting from a lack of interest by construction firms in working on such a complex project combined with the effects of the COVID-19 pandemic, officials have said.
The section facing possible postponement is the 1.8 kilometer underground tunnel connecting Harmoni to Mangga Besar in Central Jakarta. It is part of the 6.3 km second phase of the Jakarta MRT that, if completed, will stretch from the Hotel Indonesia (HI) traffic circle in Central Jakarta to Kota in West Jakarta.
The second phase of construction consists of several contracts, including the ongoing construction of a 2.8 km tunnel from the HI traffic circle to the National Monument (Monas) in Central Jakarta called CP201. It extends the first phase of the subway service stretching 15.7 km from Lebak Bulus in South Jakarta to the HI traffic circle, which was launched in March of last year.
The second contractual section is called CP202 and will run from Harmoni to Mangga Besar followed by CP203 from Glodok to the final station in Kota. Other contracts include the construction of railway systems and track work (CP205) and the procurement of the MRT trains themselves (CP206).
The second phase of development, which is to be fully underground, is funded by a loan from the Japan International Cooperation Agency (JICA). Under the scheme, only Japanese companies are eligible to be the main contractors in the projects.
City-owned transportation company PT MRT Jakarta president director William Sabandar said the project might be postponed as no Japanese firms had submitted proposals for the CP202 and CP205 contracts despite the tender being open for a year. Furthermore, none had shown any interest in supplying trains.
The Harmoni and Mangga Besar stations are expected to be 30 meters below ground as they will be located under the Batang Hari River. The route for the underground tunnel passes many major facilities and faces land subsidence issues, which are considered construction challenges.
The technical complexities have led potential bidders to ask for a longer duration for the construction.
William said the company had decided to extend the project from 57 to 74 months. As a result, the completion date for this section will be delayed to August 2027 from the initial target of March 2026.
“Potential bidders from Japan are too conservative and not ready to take risks. It is indeed a high-risk project, hence the bargaining position of potential bidders is also high, especially if the COVID-19 pandemic persists," William told journalists in a virtual press briefing on Monday.
In an attempt to continue the CP202 section and following JICA’s recommendation, MRT Jakarta will appoint a Japanese contractor that participated in the previous Jakarta MRT project after the CP205 bid is concluded. The company has extended the CP205 tender for the fourth time but plans to close the bid definitively on Oct. 26.
For the supply of trains, MRT Jakarta construction director Sylvia Halim said the competitive global market left the project off the priority lists of potential bidders, citing railway projects in Japan, Thailand, Myanmar and the United States.
"The market for Japanese firms is very much occupied. Moreover, our demand is relatively small [14 train cars]," she said on the same occasion.
“If the tender on Oct. 26 fails again, we have prepared several scenarios so that the HI traffic circle to Monas stations will still be able to operate starting in March 2025. We are currently discussing the options with JICA,” she added.
William said the company had asked the central government and the government of Japan to allow contractors outside Japan to get involved in the project. He said many contractors, including from China, South Korea and the United Kingdom, had shown an interest or had the capacity to manage the project.
“Let’s not forget Indonesian contractors that have proven experience in MRT Jakarta projects,” William said, citing state-owned developers Wijaya Karya, Hutama Karya, Jaya Konstruksi and Adhi Karya.
“We also have state-owned Industri Kereta Api [INKA], which has supplied train cars for LRT Jabodebek,” he added.
As the tenders remain stalled, both governments have been conducting a “high-level dialogue” to encourage Japanese contractors to get involved in the national strategic project, William said.
“[The MRT phase 2] is a symbol of strategic cooperation between Indonesia and Japan. Therefore, we expect support from the Japanese government to encourage firms to be more serious and involved in this project,” he said.
