[Kabar-indonesia] RI, Japan to sign subway project deal by end of Nov.

[Joyo at aol.com]

Indonesia, Japan to sign subway project deal by end of Nov.

JAKARTA, November 1 (Kyodo News)-- The governments of
Indonesia and Japan will sign an agreement on the
construction of a Jakarta subway line by the end of this
month, a local newspaper reported Wednesday.

Koran Tempo daily quoted Transportation Minister Hatta
Rajasa as saying that the finance ministers of both
countries will sign the agreement on the $800 million
project, which is expected to get under way by the end of
2008.

Earlier this year, the two sides were having difficulty
agreeing over local content.

Indonesia wanted more use of local content or domestic
products, estimated to reach 75 percent of the project's
needs, so it would absorb more domestic labor.

In the latest negotiations, according to Rajasa, it was
agreed that 30 percent of the project's components will be
from Japan, 30 percent from Indonesia and 40 percent will be
opened for tender.

The 32-kilometer subway will stretch from Kota in West
Jakarta to Lebak Bulus in South Jakarta, passing by National
Monument (Monas) Park in Central Jakarta.

The project is part of efforts made by the city
administration to reduce traffic congestion in the capital.

The Monas-Lebak Bulus line will be the first of two stages
of the south-north subway project. The second line will run
from Monas to Kota.

The Lebak Bulus-Monas section is estimated to cost about
$767.66 million, while the cost of the second is yet to be
calculated.

The subway project was approved for the first time in 1974.
The government came close to giving the green light in 1995
after the Japanese government committed funds to the
project.

However, the Asian financial crisis in mid-1997 led to its
postponement.

The subway network is estimated to carry some 322,400
passengers per day in 2009 and 440,700 passengers per day in
2015.

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Joyo Indonesia News Service
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