0 Ministers still considering govt tab for MRT

Jakarta will have to wait to before proceeding with the Mass Rapid Transit (MRT) system, as central government ministers ponder how much they will pay for the US$1.8-billion project. Governor Joko “Jokowi” Widodo met on Wednesday with a host of officials to discuss funding the project, including Coordinating Economic Minister Hatta Rajasa, Finance Minister Agus Martowardojo, National Development Planning Minister Armida S. Alisjahbana and State-Owned Enterprises Minister Dahlan Iskan. 

Jokowi told the ministers that he wanted the central government to repay a bigger portion of the $1.5 billion loan from the Japan International Cooperation Agency (JICA) that will be used to finance the project and subsidize its operation. Agus, however, said that Jokowi’s proposal was still under discussion. “We all know that a decision was made in 2005 for a repayment scheme that calls on the central government to repay 42 percent of the loan, while the city administration would repay 58 percent,” the finance minister said. 

The Finance Ministry previously asked Jokowi’s administration to present a clear plan for building the MRT so it could make a decision on the loan’s repayment ratio. The first stage of the MRT project calls for a north-south line running from Lebak Bulus, South Jakarta, to the Hotel Indonesia traffic circle in Central Jakarta, which will eventually be extended to Kampung Bandan in North Jakarta. Meanwhile, plans for an east-west line of the MRT are on hold pending the completion of a feasibility study. Agus said the administration had yet to provide a clear case for the east-west line. 

“We demand that a study be done, especially on the cost of project. We want to make sure that the project will not be too expensive,” he said. The loan from JICA is tied to the Special Terms for Economic Partnership (STEP) agreement and calls for a loan period of 40 years, a grace period of 10 years and an interest rate of 0.2 percent per year. Jokowi said on Wednesday that he wanted the central government to repay 60 percent of the loan, while the city would repay 40 percent, which is more than his initial offer of a 70-30 repayment scheme. “We want the central government to pay the larger proportion. I can go down to 59-41, as long as they pay the larger part,” Jokowi said.

source : the jakarta post