GOVERNOR YET TO SIGN JAKARTA MONORAIL CONTRACT

By Andi Abdussalam

Jakarta, May 26 (Antara) - Jakarta Governor Joko Widodo is still waiting for PT Jakarta Monorail (JM) to complete the requirements before the contract to continue the Jakarta monorail project, which has been delayed for years, can be signed.         "To date, PT JM has only met some of the requirements. The regional government of Jakarta still has to check these requirements. So, the requirements that it has met so far should not be summarily approved. We have to check them first. We do not want the project to be delayed again," Jakarta Governor Joko Widodo, better known as Jokowi, said here on Monday.          PT JM is attempting to resume construction of the Jakarta monorail project, which has been delayed and become idle for years.          Initially, the Jakarta monorail project began in 2004, when state-owned PT Adhi Karya, the contractor, erected supporting pillars in some sections and PT JM acted as the executor of the project. However, the project was later halted because of the absence of contractors.         While it has erected about 90 pillars, claiming to have invested some Rp192 billion, PT Adhi Karya quit the project and PT JM agreed to take over and repay the costs spent by Adhi Karya in building the pillars in a number of sections along the elevated monorail tracks.          Jakarta Governor Jokowi wanted the project to be resumed to solve the problem of traffic woes in the capital city.            Thus, in October last year, Jokowi inaugurated the groundbreaking ceremony for the project, even though the conflict over the debt was still underway between PT Adhi Karya and PT JM.          This again led to the disruption of the project. Due to coming up with a different calculation, PT JM still refuses to refund the construction cost of the pillars.         "We have to pay Rp190 billion, but this request has no legal basis," JM President Director John Aryananda said last February.          On April 21, 2010, the government's development finance comptroller (BPKP) conducted due diligence on the project. The result of the assessment indicated that the value of the project was US$14.88 million. The BPKP used an exchange rate of Rp9,161 against the US dollar.          Therefore, Jakarta Governor Jokowi asked the two sides (PT JM and PT Adhi Karya) to negotiate and resolve their differences, so the monorail project will not be delayed a second time.          Now, PT JM is waiting for the signing of its contract by the Jakarta governor. The Jakarta government is the owner of the land, while PT JM is the project developer and investor.          On Monday, Jokowi made it clear that he should not be forced to sign the contract for the construction of the Jakarta monorail project with PT JM.          "I want the project to commence and finish quickly but do not want to be forced to sign the contract," Jokowi stated at City Hall.          He pointed out that the signing of the contract had nothing to do with his leave, as of June 1, 2014, to focus on his presidential bid in the face of the upcoming July 9 election.          "It has no connection with my leave. If the requirements for the monorail project are not finalized before I go on leave, I cannot sign it," emphasized the Jakarta governor who is running for president.           At the very least, PT JM still has to meet requirements such as financial crossing, technical assessments and legal preparations. Therefore, Jokowi, who is running for president, should be careful in deciding on the continuation of the project.         "I have to be careful in making a decision. I do not want a problem to emerge after the contract is signed by both sides," said Jokowi.          Jokowi claimed he had no objection to the agreement not yet being signed after he had officially set aside his duties as the Jakarta governor.         "There is no problem if (the agreement) is not signed. After all, the project has been idle for a long time. We are trying to do our best, so that it can be resumed, but this time, we should be careful so that its construction will not be delayed again," the Jakarta governor remarked.          He explained the reason that the agreement had not yet been signed, noting that PT JM had not yet answered a number of questions raised about the project.         "The questions about depots and profits or losses have all not yet been answered. That is why I do not want to make a decision in a hurry," Jokowi added.          In the meantime, the transportation ministry said the Jakarta monorail project must continue to be built to help solve the capital city's transportation problem.         "The monorail project under PT JM must be continued," Director for Traffic and Transportation Affairs of the Ministry of Transportation Hanggoro Budi Wiryawan stated in a written statement last week.         He noted that PT JM officials had held a consultation meeting with the ministry of transportation to explain the problems it was facing in the project's construction.          Hanngoro added that PT JM has stated that the ticket price of the monorail was about Rp9,000.          The monorail project is one of the mass transport programs in Jakarta being built under a public-private partnership system. It has passed several technical, legal and financial studies by the Infrastructure Development Acceleration Policy Committee team, he said.          The Indonesian transportation sector is facing a large gap between its transportation capacity and the volume of cargo and passengers, stated the Ministry of Transportation.***2*** (T.A014/INE  ) EDITED BY INE (T.A014/A/BESSR/A. Lazuardi) 26-05-2014 22:57