The Jakarta MRT project may face delays after the House's budget committee chose not to approve a request for capital injection from Jakarta's city-owned companies. (Antara Photo/Reno Esnir)

JICA to Continue Financial Aid for Jakarta's MRT Construction

FEBRUARY 13, 2015

Jakarta. Japan International Cooperation Agency, or JICA, an independent governmental agency of Japan that assists economic and social growth in developing countries, plans to continue financing the second stage of construction of Jakarta’s Mass Rapid Transit at a cost of Rp 16 trillion ($1.3 billion).

The Jakarta government and Japanese investors are funding the MRT’s construction, which was divided into two stages.

The first stage of the MRT's line construction stretches from Lebak Bulus to the Hotel Indonesia traffic circle, and the second stage stretches from the Hotel Indonesia traffic circle to Kampung Bandan.

“The MRT development is divided into two stages, and so is the financing. They [JICA] will finish the second stage, which will cost Rp 16 trillion. The MRT is still under construction,” said Andrinof Chaniago, head of the National Development Planning Agency, or Bappenas, on Thursday.

JICA would also support the idea of developing a maritime axis, a plan introduced by President Joko Widodo and Vice President Jusuf Kalla.

The cooperation and financial aid from JICA would work along with the National Medium-Term Development Plan, which is focused on connecting all areas across Indonesia, JICA president Akihiko Tanaka said, after his meeting with the president.

“We didn’t discuss any project in specific details. We will talk about it later,” Akihiko said.

Investor Daily