The MoU was signed bilaterally by Indonesia and three countries, namely Japan, South Korea and the United Kingdom, during the Group of 20 meetings in Bali, on Nov. 14.

“We are using the G20 moments to seek opportunities for cooperation in transportation-infrastructure development via non-state budget funding,” Indonesia’s Transportation Minister Budi Karya Sumadi said in a statement.

Budi went on to say that for now, many agreements are circulating around projects in Jakarta, which can be an example of mass-transportation development in the country, but he said other cities would soon see similar opportunities.

“We are conducting studies related to MRT and LRT [light rail transit] development in Medan, [North Sumatra]; Bandung, [West Java]; Surabaya, [East Java]; and Bali,” Budi said.

Read also: As Xi visit draws near, delays haunt Jakarta-Bandung rail project

The agreement with Japan covered aspects related to the first phase of MRT Jakarta’s east-west corridor, also dubbed the Third Phase, that would span between Kali Deres and Ujung Menteng area. The Japanese government has expressed its interest in funding some parts of the first phase of the east-west line last June.

The east-west corridor is divided into two phases, with the first to extend the lines within Jakarta and the second to beyond the capital city, as it will connect Banten and West Java as well. 

MRT Jakarta estimates the 84-kilometer-long railways will require a total of Rp 160 trillion (US$10.29 billion) to finish the whole east-west line.  

Currently, both Indonesia and Japan are working on the Second Phase that extend the north-south corridor further north to Kota from the First Phase that span between Hotel Indonesia roundabout and Lebak Bulus, which after its completion will span for 28 km.

The British government signed the letter of intent (LoI) to fund development of other phases in MRT project with their initial contribution of almost US$1.25 billion backed by UK export finance. 

UK’s Department of Transportation-backed Crossrail International has signed a MoU with MRT Jakarta in May to work in the east-west corridor.

Meanwhile, South Korea will participate in the development of the Fourth Phase that is set to span between Fatmawati and Kampung Rambutan; MRT Jakarta estimates the 12 km long project will consume around Rp 28 trillion.

Satoru Mizushima, Deputy Minister for Foreign Cooperation of Japan, said in a statement that the agreement would strengthen the cooperation between the two countries in railway development.

On the other hand, UK regional-trade commissioner Nathalie Black stated that the West European country allocated around 4 billion pounds (US$4.75 billion) for Indonesia with 1 billion pounds being earmarked for the MRT project, implying that the UK still has more investments to be made for the country.

“So, this is really significant, and we actually want to do a lot more,” Black told the Post on Tuesday.

Progressing transportation capability

In an official statement, Jakarta temporary governor Heru Budi Hartono and MRT Jakarta CEO Tuhiyat lauded the agreement, adding it would greatly help develop Jakarta’s transportation capability.

“We will keep expanding the MRT network to many places in Jakarta,” Hery said.

Read also: Second phase MRT hit by cost overrun, land issues

On top of MRT Jakarta, the agreement between Indonesia and each of the three countries covers many other transportation projects in air, land and sea.

The agreement with Japan includes cooperation to develop the Patimban Deep Sea Port in West Java and the Jakarta-Surabaya semi high-speed railway, which runs through the northern side of Java Island, among many others.

Meanwhile, the agreement with South Korea also covers its participation in light rail transit (LRT) Jakarta and other development in sea and air transportation.

LRT Jakarta currently operates a relatively short line of 5.8 km long routes connecting Kelapa Gading and Rawamangun in its First Phase since 2018.

Jakarta government announced in June that it plans to extend the railway’s Second Phase with its first stage to lengthen the line further west by connecting Kelapa Gading with the newly built Jakarta International Stadium, which will begin construction in 2023 and operation in 2025.