Jakarta receives Rp 9 trillion loan for phase 2 of MRT project

LRT - JAKARTA. The Finance Ministry signed over to the Jakarta administration on Wednesday the first installment of a Japanese loan meant to finance Phase 2 of the MRT project.

The 70.021 billion yen (US$632.64 million, or Rp 9.3 trillion) from the Japan International Cooperation Agency (JICA) was agreed to in a deal reached on Oct. 24 last year with the Finance Ministry. The total investment needed for Phase 2 of the project is Rp 22.5 trillion.  

“The signing was an important milestone for Phase 2 of the MRT project. We are hoping that PT MRT Jakarta can immediately start work in the field,” Jakarta Governor Anies Baswedan said at City Hall on Wednesday.

"Insya Allah [God willing], the city administration would deliver reports regularly to the Finance Ministry's directorate general of fiscal balance and the Transportation Ministry's directorate general of railways, as well as ensure supporting facilities [are built] for the smooth operation of the MRT," he added.

Speaking on the same occasion, the Finance Ministry’s director general of fiscal balance, Astera Primanto Bhakti, said 59.108 billion yen of the loan would pay for civil works, 6.311 billion yen for consultation services and 4.602 billion yen for unforeseen expenses.  

“The central government has declared MRT Jakarta to be a national strategic project,” he said. Hence, the government would be responsible for repaying 49 percent of the loan, while the Jakarta administration was to shoulder 51 percent.  

The first phase of the MRT runs 15.7 kilometers from Lebak Bulus in South Jakarta to the Hotel Indonesia traffic circle in Central Jakarta, while the second phase is to extend Phase 1 to Kampung Bandan in West Jakarta.