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Jakarta counts on private investors to expand MRT, LRT
The city administration needs investors to develop three projects worth Rp 84.6 trillion (US$5.93 billion).
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he Jakarta administration is counting on private funding to further develop the MRT and LRT railway projects as the city seeks to cut pressure on the pandemic-worn regional budget.
Jakarta Capital Investment and One Stop Service (DPMPTSP) agency head Benni Aguscandra said on Tuesday that the city was seeking private-public partnerships to develop three projects worth Rp 84.6 trillion (US$5.93 billion).
“It is hoped that the involvement of investors will help improve Jakarta’s fiscal standing,” he said.
The announcement comes as the Jakarta Legislative Council (DPRD) cut the city’s regional budget for this year by 5.2 percent to Rp 79.89 trillion due to lower-than-expected revenue following the COVID-19 second wave. The council cut some funding slated for the LRT.
The three projects mentioned by DPMPTSP comprise Phase 4 of the MRT project worth Rp 28 trillion (US$1.9 billion) and the Rp 50 billion Bundaran HI MRT station retail area development in Central Jakarta.
MRT Phase 4 spans from Fatmawati in South Jakarta to Taman Mini Indonesia Indah (TMII) in East Jakarta.
The first and second phases of the MRT are heavily funded through development aid from the Japan International Cooperation Agency (JICA).
Read also: Sumitomo Mitsui Construction to build part of phase 2 of Jakarta MRT
The administration is also looking for private investment for the Rp 6.6 trillion Jakarta LRT Phase 2A project spanning from Kelapa Gading to Jakarta International Stadium (JIS) in North Jakarta. Phase 1 of the Jakarta LRT was heavily funded using state coffers.
The Investment Ministry reported that foreign direct investment (FDI) was down 2.7 percent year-on-year (yoy) to Rp 103.2 trillion in the July to September period due to emergency public activity restrictions (PPKM Darurat).
Read also: Q3 foreign investment down 2.7% amid Delta outbreak
The capital city’s gross domestic product (GDP) grew 2.43 percent in the third quarter this year, slowing down from the 10.91 percent growth booked in the second quarter, as the city implemented PPKM Darurat in July.
“We want to promote Jakarta as an investment friendly city and hope that investment realization will increase,” Benni said.
