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Dono Boestami: Let Us Construct the MRT

Translator

Editor

19 October 2018 22:01 WIB

MRT Jakarta President Director Dono Boestami.

After being neglected for over 20 years, the mass rapid transit (MRT) project is finally underway with its official groundbreaking last October 10. Jakarta Governor Joko Widodo signed a statement addressed to the Finance Ministry saying that he is fully responsible for the use of the MRT funds. The governor has also elected Dono Boestami to lead the implementation of Jakarta’s MRT project. 

Dono has a notable financial background in his career from banking to state-owned enterprises. He said he understands the complexity of problems they might face in this project beginning from traffic congestion, utilities, as well as technical issues during the construction. 

"But we’ve already calculated everything. The important thing now is to let us construct first," said the MRT Jakarta president director. 

Amid his hectic schedule on Monday, October 14, Dono took the time to meet with Tempo’s Purwani Diyah Prabandari, Hermien Y. Kleden, Tomi Aryanto, and Mitra Tarigan to talk about one of Jakarta’s gigantic projects. Excerpts from the interview: 

Why has this project only begun now?

MRT Jakarta is only five years old, yet the study began in 1986. I believe Jakarta is way behind its neighboring countries. The comparison can be seen like this, around ten years ago, we were on the same level as Bangkok, Manila, and Kuala Lumpur – let’s not mention Singapore or Hong Kong. Now, we are way behind. I’ve always said we should try not to be far behind Myanmar as well. 

The study for this project has gone on for over 25 years, and the latest update was conducted last February. What were the main points of the updates?

Everything. Initially, the project was worth around Rp8 trillion. After it was updated, it became Rp16 trillion. The design was also altered. It was only (designed) to reach Dukuh Atas. Yet after further review, it was decided that it would reach Bundaran HI. So the track was extended up until the Japanese Embassy. The funding scheme and payment method also changed. 

Can you tell us about the funding scheme in more detail?

This project is already fully funded, based on Bylaw No. 3/2008 on the formation of MRT Jakarta as a state-owned enterprise and Bylaw No. 4/2008 on the government’s allocated capital for the MRT Jakarta project. This was revised last September 25. The basic capital is now Rp14.8 trillion and will be disbursed according to the stage of the project. The funding for this project is derived from the Japan International Cooperation Agency (JICA), the state budget, and regional budget. This is the first project in Indonesia to use a three-level sub-agreement. 

What are the levels?

JICA and the central government have a loan agreement. The central government and Jakarta administration consist of two funding levels: a 49 percent grant and 51 percent loan. Now, the funding from Jakarta to MRT Jakarta is a capital participation (agreement). The composition was finally settled at 49:51 percent. 

What about the accountability system for the payment?

The central government is the one that took out the loan. The central government is obligated to return 100 percent of the loan. The provincial administration is only required to return 51 percent of the loan to the central government. And, 100 percent of the funds we receive are from the provincial government in the form of equity participation. 

Is there any guarantee that this project will continue if new leaders take over the reins in Jakarta?

There should be no more changes. The official bylaw was issued last September 25, although some regulations are not complete. 

What regulations?

The concession agreement. There is a regulation that states that three months before the MRT commercially operates, the government and the directorate general of trains must set a tariff. 

Approximately how much will the tariff be?

We are a state-owned enterprise. Whatever tariff is set does not matter for us. The important thing is we have operational costs. 

How long must Jakarta face worsening traffic congestion due to the development of this project?

Three to four years. (*)



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