Jakarta MRT wracked by infighting

Jakarta is due to experience complete gridlock by 2014
Jakarta is due to experience complete gridlock by 2014

Jakarta Governor Joko Widodo has postponed the construction of the first line of the city’s desperately needed MRT due to concerns over who will shoulder to lion’s share of the project’s multi-billon-dollar loan.

Jakarta’s previous administration, headed by Fauzi Bowo, had agreed to absorb 58 per cent of the loan, issued by the Japan International Cooperation Agency, splitting the rest with the central government.

However, Joko has brought the issue back to the table stating that 60 percent to 70 percent of the loan should be paid by the central government because the Jakarta administration will not be able to keep a sound budget intact otherwise.

This has led Indonesian Finance Minister Agus Martowardojo to announce that the terms are no longer negotiable, while Joko has called for feasibility studies to assess an accurate cost burden.

Indonesia’s capital of roughly 10 million people will become increasingly beleaguered by motor vehicles in the years to come, with 11.26 per cent new vehicles coming on the road every year. With no mass transit system to speak of, budgetary infighting will only continue to exacerbate congestion, predicted to reach complete gridlock by the year 2014.

Now lauded as the most-resilient metropolitan economy in Southeast Asia, Jakarta risks derailing hard-earned growth if traffic woes are dealt with in the immediate future.

The planned MRT system would be able to carry 412,000 people per day and tickets would be priced at $1.50, thanks in part to government subsidies. Tickets would cost over double without the government’s assistance.



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[caption id="attachment_5669" align="alignleft" width="300"] Jakarta is due to experience complete gridlock by 2014[/caption] Jakarta Governor Joko Widodo has postponed the construction of the first line of the city’s desperately needed MRT due to concerns over who will shoulder to lion’s share of the project’s multi-billon-dollar loan. Jakarta’s previous administration, headed by Fauzi Bowo, had agreed to absorb 58 per cent of the loan, issued by the Japan International Cooperation Agency, splitting the rest with the central government. However, Joko has brought the issue back to the table stating that 60 percent to 70 percent of the loan should be paid...

Jakarta is due to experience complete gridlock by 2014
Jakarta is due to experience complete gridlock by 2014

Jakarta Governor Joko Widodo has postponed the construction of the first line of the city’s desperately needed MRT due to concerns over who will shoulder to lion’s share of the project’s multi-billon-dollar loan.

Jakarta’s previous administration, headed by Fauzi Bowo, had agreed to absorb 58 per cent of the loan, issued by the Japan International Cooperation Agency, splitting the rest with the central government.

However, Joko has brought the issue back to the table stating that 60 percent to 70 percent of the loan should be paid by the central government because the Jakarta administration will not be able to keep a sound budget intact otherwise.

This has led Indonesian Finance Minister Agus Martowardojo to announce that the terms are no longer negotiable, while Joko has called for feasibility studies to assess an accurate cost burden.

Indonesia’s capital of roughly 10 million people will become increasingly beleaguered by motor vehicles in the years to come, with 11.26 per cent new vehicles coming on the road every year. With no mass transit system to speak of, budgetary infighting will only continue to exacerbate congestion, predicted to reach complete gridlock by the year 2014.

Now lauded as the most-resilient metropolitan economy in Southeast Asia, Jakarta risks derailing hard-earned growth if traffic woes are dealt with in the immediate future.

The planned MRT system would be able to carry 412,000 people per day and tickets would be priced at $1.50, thanks in part to government subsidies. Tickets would cost over double without the government’s assistance.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Donation Total: $10.00

 

 

1 COMMENT

  1. Did they just not get rid of the old governor for this exact reason? It is very difficult to know whether starting a new feasibility again is a good step or not until they complete the study. I wonder when that might be especially when you 11.26% growth in cars hitting the streets. I did hear a rumor that Ford who recently shut down operations in Manila might move to Indonesia – and I guess they would do well!!!

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