Jakarta gears up for realization of infrastructure projects ~ Jakarta Forum

Jakarta (Jakarta Forum) - Coordinating Minister for Economic Affairs Hatta Rajasa and Jakarta Governor Fauzi Bowo have lately been busy discussing preparations for the implementation of infrastructure projects in Jakarta.

They have given extra attention to the infrastructure projects after President Susilo Bambang Yudhoyono had made a harsh criticism on stalled infrastructure development plans particularly in the capital city which is notorious for grave traffic jams.

"I am fed up with too many commitments, such as commitment to the development of transportation in Jakarta, infrastructure in the capital city of Jakarta, tremendous numbers (of commitments) over the past 10 years, but they are all just empty talks, no concrete implementation. Similar condition might apply in the regions. Stop doing that," the president said in Bogor, West Java, last February 2011 in a meeting on the government programs.

The head of state called for formulation of a master plan on the acceleration and expansion of the economic development. He, however, reminded that the master plan must not contain merely commitments, but focus on agreements on concrete projects.

He said that the government had once calculated that the country needed a number of infrastructure projects and investments amounting up to at least 200 billion dollars US to be meaningful to the country`s economic.

The next day (Feb. 22), when closing the two-day meeting, President Yudhoyono specifically ordered Jakarta Governor Fauzi Bowo to immediately improve the city`s transportation management to solve chronic traffic jams.

"The problem must be solved by 2020," he said in his speech at the closing of the government`s working meeting.

The transportation management is one of the three priority programs of the government. The other two are about rice supply and employment.

To follow up the President`s instruction, several related ministers and Governor Fauzi held a coordinating meeting to prepare the draft of a Jakarta infrastructure master plan and the implementation of the projects immediately.

"As being requested by the President, the master plan must be ready next week at the latest," Transportation Minister Freddy Numberi said after attending the meeting, which was also participated in by Public Works Minister Djoko Kirmanto, Minister Hatta Rajasa and Governor Fauzi, at the Coordinating Ministry for Economic Affairs in Jakarta, Wednesday (April 13).

The government will synergize various infrastructure projects in Jakarta and its surroundings within integrated transportation contexts, according to the minister.

The projects will include Mass Rapid Transit (MRT), Manggarai-Soekarno Hatta Airport railway and Cikarang dry port accessible by railway.

The implementation of the infrastructure projects will involve state-owned companies (BUMNs) which will invite investors under joint ventures.

"The Manggarai-Soekarno Hatta Airport railway is expected to be realized in 2015. Hopefully, the land acquisition problem could be solved soon," he said.

The main obstacle facing the project development has been land acquisition. To deal with the problem, the government has allocated Rp450 billion for the acquisition of land needed to build the Manggarai-Soekarno Hatta airport railway.

"The funds are available in the transportation ministry," Coordinating Minister for Economic Affairs Hatta Rajasa, said in the coordinating meeting.

Minister Hatta instructed that the plan for the railway project be completed immediately. "We ask for the immediate completion, then the design and land acquisition should be dealt with in the near future," the minister said.

To help support the development of infrastructure projects, Jakarta Governor Fauzi Bowo hoped that the Bill on Land Acquisition for Public Interests could be passed into law.

"Regarding land acquisition, we have not reached a deal yet, but we have prepared the route alignment," Fauzi Bowo said. The train could take the Bukit Duri and Pluit routes, he said.

According to State Minister of State Enterprises (BUMN) Mustafa Abubakar, the construction of the railway connecting Manggarai railway station and Soekarno-Hatta International Airport is estimated to cost around Rp2.27 trillion.

"The development of the airport railway via Tangerang will need funds amounting to around Rp2.27 trillion. Rp2 trillion will come from the State Budget," Mustafa Abubkar said after attending the second-day meeting on infrastructures at the coordinating ministry for economic affairs in Jakarta, Thursday (April 14).

Minister Mustafa said the development of the airport railway via Tangerang will be given priority because the cost was cheaper.

"However, the airport railway through Pluit will also be built later, so that the airport rail network will become a circle," he said.

Coordinating Minister for Economic Affairs Hatta Rajasa earlier said the connectivity among infrastructure development-based regions is the key to step up economic growth.

"Rapid economic growth must be supported by infrastructure, and the key is connectivity. Inadequate infrastructure could cause heated economy and the demand response will be late," Minister Hatta said in his remarks in the Indonesia International Infrastructure Conference and Exhibition (IICE) 2011, here, Tuesday (April 12, 2011).

To accelerate the infrastructure development, the government has pledged to omit bureaucratic development by revising regulations and speeding up the passage of the law on land provision.

"We will revise (some) laws and regulations to support the infrastructure development. We realize there are many obstacles. We will improve the agrarian system, decrease the land price risks, land freezing, and it is expected to be completed this year for the sake of justice concerning land," he said.

According to Hatta, the government allocates a budget of Rp500 trillion within four years ahead for infrastructure projects, and the amount is small compared to the total amount that is needed.

Therefore, Minister Hatta called for the participation of the domestic and foreign private sectors, to help finance the infrastructural projects. (*)