Indonesia to spend $40 billion for Jakarta metro extension

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The Indonesian government intends to spend no less than $40 billion to extend Jakarta’s metro network by about 230 kilometers by 2030, a move to boost the country’s construction companies and part of President Joko Widodo’s roadmap to create a $7-trillion economy by 2045 by improving infrastructure and increase public spending.

Jakarta’s MRT operator is seeking to add an additional six lines to the one that partially opened earlier this year, which could rival Hong Kong and Singapore in terms of length. The MRT is currently selecting financiers to help fund the expansion, Bloomberg News cited president director William Sabandar as saying.

“We have a target of building 230 kilometers by 2030, that’s the masterplan,” Sabandar said.

 “We only have 16 kilometers right now, so the key is how we can do this in an accelerated way. We can no longer just build them one by one,” he noted, according to the newswire.

Improving the country’s rail network is a crucial next step in Jokowi’s ambitions to develop the Southeast Asian country’s infrastructure, expediting the flow of goods and people and alleviating congestion, after he ordered aggressive spendings to build the toll road network in his first team. There is a requirement to spend about $455 billion on infrastructure over the next five years, according to government officials.

Assistance from China, Japan

Indonesia will need assistance and funding from abroad for the plan to materialise, according to Yayat Supriatna, a transportation analyst at Trisakti University in Jakarta. That opens the door for China and Japan to renew their competition in the country, he said.

“We have to acknowledge that Indonesia doesn’t have the technical capabilities and the financial resources for this,” Supriatna was quoted by Bloomberg News.

“By making Japan and China compete against each other, “we can make sure that we can pick the offer that gives us the best benefit,” he said.

The two Asian powerhouses have both had success in winning rail-related projects in Indonesia. Japan was awarded the first subway line in the capital, while China secured the first high-speed train deal connecting Jakarta and Bandung.

“The Asian Development Bank and the Asian Infrastructure Investment Bank are among those who are serious and have submitted financing commitments,” Sabandar said, adding that the Japan International Cooperation Agency has also expressed interest in the new lines.

For Jakarta, there are also plans to spend about $43 billion to sort out the city’s traffic mess, completing a 44-kilometer light-rail project, rejuvenating the bus system and developing overpasses and other toll roads.

The Indonesian government intends to spend no less than $40 billion to extend Jakarta’s metro network by about 230 kilometers by 2030, a move to boost the country’s construction companies and part of President Joko Widodo’s roadmap to create a $7-trillion economy by 2045 by improving infrastructure and increase public spending. Jakarta’s MRT operator is seeking to add an additional six lines to the one that partially opened earlier this year, which could rival Hong Kong and Singapore in terms of length. The MRT is currently selecting financiers to help fund the expansion, Bloomberg News cited president director William Sabandar...

Auto Draft

The Indonesian government intends to spend no less than $40 billion to extend Jakarta’s metro network by about 230 kilometers by 2030, a move to boost the country’s construction companies and part of President Joko Widodo’s roadmap to create a $7-trillion economy by 2045 by improving infrastructure and increase public spending.

Jakarta’s MRT operator is seeking to add an additional six lines to the one that partially opened earlier this year, which could rival Hong Kong and Singapore in terms of length. The MRT is currently selecting financiers to help fund the expansion, Bloomberg News cited president director William Sabandar as saying.

“We have a target of building 230 kilometers by 2030, that’s the masterplan,” Sabandar said.

 “We only have 16 kilometers right now, so the key is how we can do this in an accelerated way. We can no longer just build them one by one,” he noted, according to the newswire.

Improving the country’s rail network is a crucial next step in Jokowi’s ambitions to develop the Southeast Asian country’s infrastructure, expediting the flow of goods and people and alleviating congestion, after he ordered aggressive spendings to build the toll road network in his first team. There is a requirement to spend about $455 billion on infrastructure over the next five years, according to government officials.

Assistance from China, Japan

Indonesia will need assistance and funding from abroad for the plan to materialise, according to Yayat Supriatna, a transportation analyst at Trisakti University in Jakarta. That opens the door for China and Japan to renew their competition in the country, he said.

“We have to acknowledge that Indonesia doesn’t have the technical capabilities and the financial resources for this,” Supriatna was quoted by Bloomberg News.

“By making Japan and China compete against each other, “we can make sure that we can pick the offer that gives us the best benefit,” he said.

The two Asian powerhouses have both had success in winning rail-related projects in Indonesia. Japan was awarded the first subway line in the capital, while China secured the first high-speed train deal connecting Jakarta and Bandung.

“The Asian Development Bank and the Asian Infrastructure Investment Bank are among those who are serious and have submitted financing commitments,” Sabandar said, adding that the Japan International Cooperation Agency has also expressed interest in the new lines.

For Jakarta, there are also plans to spend about $43 billion to sort out the city’s traffic mess, completing a 44-kilometer light-rail project, rejuvenating the bus system and developing overpasses and other toll roads.

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