JakartaPost-July 16
Foreign investors have shown interest in the government’s plan to extend the Jakarta light rail transit (LRT) network to develop the capital city’s public transportation system, according to city-owned infrastructure, utilities and real estate developer Jakarta Propertindo (Jakpro). Jakpro CEO Iwan Takwin said on Monday that the company had received letters of intent (LOIs) from investors in Asia, Europe and the Middle East regarding three LRT expansion projects totaling Rp 24.06 trillion (US$1.48 billion) offered through the Jakarta Investment Center (JIC). Iwan did not provide any details about the potential investors. “As for the target, the sooner we can secure an investor the better, but it also depends on each investor’s assessment and analysis process before they make a decision,” he said. An LOI is a document stating the commitment of one party to enter into a formal agreement with another and is nonbinding, meaning that the issuing party can still back out. Jakarta traffic has continued to worsen since the government eased the COVID-19 public activity restrictions, though it remains below pre-pandemic levels. The Jakarta LRT currently spans just 5.8 kilometers and connects Pegangsaan Dua LRT Station in Kelapa Gading, North Jakarta, and Velodrome station in Rawamangun, East Jakarta, dubbed as Phase 1A of the project. Phase 1B extends the LRT line to Manggarai, South Jakarta, increasing the rail network’s total length to 12.2 km at its completion date in 2026. Phase 1C extends the rail service from Manggarai to Dukuh Atas station in Setiabudi, also in South Jakarta. The city is looking for investors to fund Phase 1D of the project with an estimated cost of Rp 13.4 trillion, which extends the existing line from Dukuh Atas to Pesing Station in Grogol Petamburan, West Java. It is also seeking investors to fund the Rp 7.01 trillion Phase 2A expansion in North Jakarta from Kelapa Gading to Jakarta International Stadium (JIS) in Tanjung Priok, as well as the Rp 3.65 trillion Phase 2B expansion in East Jakarta from Velodrome to Klender in Pulo Gadung subdistrict. Read more at:
