Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Infrastructure  >>   Jakarta finally goes ahead with MRT plan
NEWS UPDATES Asean Affairs   25 December 2012 

Jakarta finally goes ahead with MRT plan


After weeks of uncertainty, the Jakarta administration has revealed it will move forward with the plan to construct the city’s first Mass Rapid Transit (MRT) line next year.

In his speech during a plenary meeting at the City Council yesterday, Jakarta Governor Joko “Jokowi” Widodo listed the MRT project as one of his administration’s priority programmes for 2013. The governor submitted the 2013 budget draft during the plenary session.

“The MRT construction will include land procurement, road widening and construction of the MRT by PT MRT Jakarta,” Jokowi said.

The governor said that next year’s work on the MRT would be funded by a grant totalling 3.8 trillion rupiah (US$393.6 million) from the central government. “We will coordinate [with the central government] on the disbursement of the MRT funds,” he said.

Over the past few weeks, Jokowi’s comments appeared to leave the project in limbo, as he voiced doubts as to whether the project was feasible enough to proceed.

Jokowi’s predecessor, Fauzi Bowo, scheduled the MRT project to start before the end of the year, after years of studies and discussions involving transportation experts and officials from both the city administration and the central government.

The massive project is believed to be crucial in addressing the city’s traffic problems, with the MRT poised to serve as a backbone of urban development after it begins operations in 2016.

The cost for the first phase of the 15.7-kilometre-long MRT system has been estimated at 144 billion yen ($1.71 billion), which is to be funded in part by a 120-billion yen soft loan from the Japan International Cooperation Agency.

Jokowi demanded a change in the contract, pushing the central government to repay a larger portion of the loan and to provide subsidies to cover the MRT’s operations. He wants the central government to cover 70 per cent of loan payments, up from 42 per cent under the present arrangement.

Responding to his demand, the Finance Ministry has said that the governor’s proposal to change the structure of loan payments would be considered.

Jokowi is planning to meet Coordinating Economic Minister Hatta Rajasa to discuss the MRT system in the coming days.

Earlier this week, Hatta promised that he would meet with Jokowi to discuss the ideal cost-sharing structure to avoid burdening the Jakarta administration and its citizens.

“We will look for the best solution,” the minister said as quoted by

The MRT’s first phase — a 15.5-kilometre-long route connecting Lebak Bulus in South Jakarta and the Hotel Indonesia traffic circle in Central Jakarta — is planned to serve around 173,420 passengers per day in its first year, rising to 233,035 passengers per day by its 10th year of operations.

Ticket prices are estimated to be between 10,000 and 15,000 rupiah, leaving the administration to provide a hefty subsidy to close the gap with the actual ticket price — estimated to be around 38,000 rupiah. Jokowi wants the ticket price to be less than 10,000 rupiah.

The governor also wants to renegotiate clauses in existing contracts that hold the city administration fully responsible for any mishaps affecting the project.

Jokowi said that city-owned enterprise PT MRT Jakarta, which was established to implement the project, should be accountable for building the MRT system.

The central government has insisted that all the analyses and agreements for the project had been completed and that the decision to take a loan from JICA was made based upon the consideration of the Office of the Coordinating Economic Minister, the National Development Planning Board (Bappenas) and the Transportation and Finance Ministries.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    25 December 2012  
Subsribe Now !
• India-Asean agree on services in free trade pact   Subcribe: Asean Affairs Global Magazine
• 'Huge gains' in Asean-India FTA Asean Affairs Premium
• Pressure mounts on Laos to find missing activist
• Jakarta finally goes ahead with MRT plan
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Credit watchdog upgrades outlook on Philippines
• Malaysian firms get 2 highway projects in India  
• Freshly licensed Thai telcos embark on new era  
• Vietnam party leader urges bank to ease business stress  
Asean Analysis              21 December 2012      Advertise Your Brand
• Asean Analysis- December 21, 2012  
• Asean Weekly-  December 21, 2012 Sponsor Our Events

Asean Stock Watch      24 December 2012   

• Asean Stock Watch- Demcember 24, 2012 

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand