The second phase of the MRT will connect the Hotel Indonesia traffic circle in Central Jakarta with Kampung Bandan in North Jakarta through an 8.6-kilometer tunnel. (Antara Photo/Dhemas Reviyanto)

Indonesia, Japan Ink Loan Deal for MRT 2nd Phase; Construction to Start December

BY :JG

OCTOBER 25, 2018

Jakarta. Japan and Indonesia have inked a Rp 9.4 trillion ($619 million) loan deal for the second phase of the mass rapid transit project in Jakarta, paving the way for construction to commence in December, an official said on Thursday.

The 40-year loan is the first of a total of Rp 25 trillion made available by the Japan International Cooperation Agency (JICA) for the project. Luky Alfirman, director general of financing and risk management at the Ministry of Finance, and JICA Indonesia representative, Yamanaka Shinichi, signed the agreement in Jakarta on Wednesday.

William Sabandar, president director of Mass Rapid Transit Jakarta, which is responsible for developing the project, said securing the loan allowed the company to begin construction soon to meet its 2024 target for the start of commercial operations.

"The groundbreaking is planned for December," William said on Thursday.

The second phase of the MRT will connect the Hotel Indonesia traffic circle in Central Jakarta with Kampung Bandan in North Jakarta through an 8.6-kilometer tunnel. That raises the cost of the project to Rp 25 trillion, 56 percent higher than the 16-kilometer first phase, said Silvia Halim, construction director at MRT Jakarta, which is controlled by the provincial government.

The second phase will have seven stations: Sarinah, Monas, Harmoni, Sawah Besar, Mangga Besar, Glodok and Kota. It will also pass under a tributary of the Ciliwung River.

The second phase will complete the North-South line, which starts in Lebak Bulus, South Jakarta. The first phase is expected to become operational in March next year.

The city plans to start construction of the East-West line in 2020 to help alleviate perennial traffic congestion, which is among the world's worst.

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