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The government has established a consortium to take over the
financing and construction of the high-profile mass rapid
transportation (MRT) project in Jakarta after the Japanese government
recently turned down a loan plan for the venture.
State Minister for State Enterprises Sugiharto witnessed the signing of
a memorandum of understanding (MOU) on Monday between the 10 state
enterprises and five private sector firms that are to participate in
the project.
The state firms are PT Adhi Karya, which heads the consortium, PT
Wijaya Karya, PT Hutama Karya, PT Pembangunan Perumahan, PT Waskita
Karya, PT Indah Karya, PT INKA, PT LEN Industri, PT Kereta Api, and PT
Danareksa Securities.
Meanwhile, the private firms are PT Saka Adhi Prada, PT Wiratman and
Associates, PT Bukaka Trans System (a company owned by the family of
Vice President Jusuf Kalla), PT Indonesia Transit Central, and PT
Global Profex Synergy.
It is estimated that the project will cost in the region of US$550
million.
Japan and Indonesia failed last month to reach a deal on the financing
of the overground-underground project -- which will run 14.3 kilometers
from Lebak Bulus in South Jakarta to downtown Kota in Central Jakarta.
During the early stages of the loan negotiations, Japan said it would
provide 70 percent of the total cost of the project, with the remaining
30 percent coming from the Jakarta administration, in collaboration
with the private sector.
Later, the Indonesian government proposed a "non-tied" loan facility
for the project in the hope that a target of 75 percent local content
could be reached. However, Japan turned down the proposal.
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