PT Moda Raya Terpadu Jakarta (MRT Jakarta) – or Jakarta Mass Rapid Transit in English – will spend up to IDR 25.3 trillion to finish the phase 2 construction of MRT connecting Hotel Indonesia roundabout (locally known as Bundaran HI) to Kota Tua (the old town). The 11.8 kilometers track construction project is targeted to be completed by 2030.
MRT Jakarta is a Jakarta provincial-owned transportation company. It is responsible for developing and constructing the train-based public transportation from phase 1 to phase 4. It began operational in 2008 with majority shares of 99.98% by Jakarta administration and the remaining 0.02% by city-owned modern and traditional market company PD Pasar Jaya.
Opportunities behind expansion
MRT Jakarta will continue its development on phase II connecting Bundaran HI and Kota Tua with a total allocation of funds of IDR 25.3 trillion. The budget is an increase from the original budget of IDR 22.6 trillions. However, the company has yet to consider loans from Japan International Cooperation Agency (JICA) to alleviate the burden for now.
“Is there any additional loan? The answer is not yet. Because [JICA] sees what is needed. Maybe they will come back to evaluate the third slice of the loan in 2024,” said Silvia Halim, MRT Jakarta Director of Construction, during MRT Journalist Forum on September 20, 2022.
Meanwhile, the planned construction of phase 3 will span from Balaraja in Banten to Cikarang in West Java. The plan is now under discussion. Later, the company will continue another construction plan on phase 4 from Fatmawati (South Jakarta) – Kampung Rambutan – Taman Mini (East Jakarta). The company is still waiting for a signing of Memorandum of Understanding (MoU).
“Phase 4 is still being prepared so that we can sign the MoU. The funding [for the construction] will come from one of foreign countries. Let the transportation ministry choose,” said MRT Jakarta President Director Mohamad Apriandy on September 20, 2022.
Risks behind development
There are several factors underlying the problems in the MRT construction: Firstly, the tracks have become much longer than previously planned. The change of route for phase II construction from the original plan of Bundaran HI-Kampung Bandan to Bundaran HI-West Ancol has added the number of shelters to be built. This has eventually caused an increasing budget for the construction.
Secondly, there is an increase in material construction cost to about 50% since 2018 due to inflation as well as the rarity of semiconductor material that also causes a rising budget for the construction. The ongoing Russia-Ukraine war in Europe has significantly increased the prices of oil and gas in the past months.
Thirdly, the finding of rare cultural heritage objects on the site of the MRT construction had caused a temporarily stop in progress. According to Halim, the company had provided checking to the site and found a lot of cultural heritage objects. She said the artefacts would be preserved and work will resume as usual. Halim said the company put the artefacts at the visitor center gallery, which is located at Kota railway station. Meanwhile, MRT Jakarta will have to turn the route to avoid destroying the historical sites.
