JAKARTA (TheInsiderStories) – President of Indonesia Joko Widodo revealed the budget needed for the integration of Jakarta and its surrounding transportation management (Bogor, Depok, Tangerang and Bekasi) worth of Rp 571 trillion (US$ 40.79 trillion).

The amount to meet the needs of the development of basic needs includes transportation of Mass Rapid Transit (MRT) and Light Rail Transit (LRT), settlements, clean water, wastewater management.

He said the construction was not carried out in stages from 30-40 years. While the construction of the four basic needs will be speeded up in 10 years so that it can be completed in the next 2030.

“Because they want to be accelerated, the funds must be pursued. The projection will be needed around Rp 571 trillion,” Widodo said while conducting the MRT trial at the Hotel Indonesia Roundabout Station, Tuesday (03/19).

In a meeting with cabinet ministers and the government of Jakarta and mayor from the surrounding areas, Widodo stressed the acceleration of the development and management of integrated transportation in Jakarta was urgent because it had caused losses of around Rp100 trillion per year. For this reason, the President emphasized, there should be no more sectoral egos, ministry egos, regional egos because everything that exists is the national interest.

The president stressed the importance of integrating urban transportation systems with spatial planning. He wants intermodal connectivity and continuity, both MRT, LRT, Electric Rail, Transjakarta, then other modes of transportation. These steps will greatly reduce congestion in Jakarta and the surrounding area.

On the same occasion, Jakarta Governor Anies Baswedan detailed infrastructure development needs including the addition of transportation networks starting from MRT, LRT, Transjakarta and railroad tracks no longer in the same level. For the MRT, the Jakarta Regional Government proposes the need for network extension from the current 16 kilometres to 223 kilometers.

In addition, LRT from now only 5.8 kilometers, takes up to 116 kilometers, and Transjakarta from 431 kilometers currently to 2,149 kilometers. He said, the Regional Government of Jakarta also proposed that the need for trains in the city would no longer be at the same level.

As for the construction of clean water infrastructure, it targets the coverage to be 100 percent, from the current one to only 60 percent. He continued, wastewater management is targeted to reach 81 percent, from now only 14 percent. While for settlements, 600 thousand new housing units are still needed.

“For all projects, including clean water, including flood control. If Rp 571 trillion 10 years, that means about Rp 50 trillion per year,” he said at the same place.

Baswedan admitted that in a limited meeting with the president and related ministers beforehand, he had discussed the budget for the construction of the entire infrastructure. According to him, the source of the budget is not only sourced from the State Expenditure Budget, but also through other funding patterns such as partnerships with the private sector, investment and loans.

But for the details, he said there was a team that specifically discussed development funding. “Now we are having a small team that will later work consisting of us in the Jakarta Provincial Government with the Ministry of Finance and National Development Planning. After that we will talk again for the follow-up,” he said while following President Widodo and several ministers trying the MRT.

The MRT has opened a trial operation to the public since March 12, 2019, and will be inaugurated on Sunday (03/23). At present, all stations are open to the public, provided that each passenger only has a two-hour window time inside the station.

According to Jakarta MRT data, the construction of the first phase of the project was officially started on October 10, 2013, with a total investment of Rp 16 trillion. This mode of transportation takes 30 minutes from Hotel Indonesia Roundabout Station to Lebak Bulus Station, South Jakarta.

Baswedan also said that the meeting on determining subsidized tariffs for MRT and LRT transportation between the Provincial Government and the Jakarta House of Representative is still ongoing. The provincial government, he said, pegged the subsidy that must be disbursed to the MRT with an economic tariff of Rp21,000 to Rp31,000.

With that number, MRT passengers will only pay a tariff of Rp 10,000. While for LRT, the company set an economic tariff of Rp41 thousand with a subsidy of Rp.35,000. With the total subsidy, LRT passengers will only pay Rp 6,000.

While after trying the MRT, Widodo explained that the second phase of MRT development will be marked by groundbreaking at the inauguration of the first phase of Sunday. MRT route stage II Bundaran HI station in Central Jakarta to Kampung Bandan in North Jakarta. The total length of the route is around 8.3 kilometres.

In addition, according to Widodo, the government plans to provide MRT in other cities, so it is not too late like Jakarta. Palembang, Sumatera Utara, Bandung, Surabaya, Makassar are cities that the President calls potential MRT projects.

US$1=Rp 14,200

Written by Lexy Nantu, Email: lexy@theinsiderstories.com