This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - RI tawarkan Singapura investasi di Kawasan TOD MRT Jakarta
22 February 2024
Jakarta, ID – The Indonesian government through the Transportation Ministry is offering Singapore to invest in the construction of transit-oriented development (TOD) areas integrated with the mass rapid transit (MRT) system in Jakarta.
This was stated by Transportation Minister Budi Karya Sumadi after his meeting with Singapore Transportation Minister Chee Hong Tat in Singapore on Tuesday (20/2). The Transportation Minister said that Singapore has successfully constructed TOD areas integrated with its MRT system. It can be a positive point if Singapore wants to invest in Indonesia.
“We are offering Singapore to invest in TOD areas that are integrated with the mass transportation systems in Jakarta and other cities across Indonesia. TOD [area] construction in Jakarta still has a lot of room to grow, similar to Singapore,” Budi Karya said in his press release in Jakarta on Wednesday (21/2/2024).
At the meeting, the Transportation Ministry welcomed Singapore’s initiative to address air transportation emissions and reduce carbon emissions from airport operations.
“We are discussing the possibility to cooperate to construct a refinery for an alternative jet fuel that is more eco-friendly in Indonesia. Hence, Indonesia can participate in the handling of carbon emissions from flights,” Budi Karya said.
In 2026, Singapore has opted to implement a retribution fee for all passengers departing from the country. Proceeds from this fee will be directed towards supporting the availability of a more environmentally friendly jet fuel.
The Transportation Minister also discussed the possibility of establishing flight routes from Singapore to various tourism destinations in Indonesia, besides Denpasar and Jakarta. He reckoned that several routes have a large potential to be developed.
“I am encouraging and prioritising flights from Singapore to tourism destinations in Indonesia, in accordance with the Air Services Bilateral Agreement between Indonesia and Singapore as well as the ASEAN Open Sky Agreement,” the Transportation Minister explained.
Meanwhile, PT MRT Jakarta (Perseroda) added that expanding pedestrian areas through TOD area development would enhance the comfort of road users.
“We are encouraging a pedestrian area expansion in accordance with the urban design guideline,” PT MRT Jakarta (Perseroda) Business Development Director Farchad Mahfud said as quoted by Antara.
Farchad said that the locations currently earmarked to be TOD areas were Karet Station Transit Plaza that is in the process of obtaining a permit and Pedestrian Tunnel-UoB Plaza that is currently under construction.
He hopes that the permit for Karet Station Transit Plaza will not be delayed so that the target could be achieved immediately.
“Hopefully the permit is not late. We should be able to complete it in the fourth quarter at the end of this year to improve the condition,” he stated.
MRT Jakarta has explored cooperation with several developers, namely PT Jakarta Propertindo for Jakarta, PT Jan Darmadi Investindo for Thamrin-Monas TOD Area, and PT Aryaventura Realty for Fatmawati TOD Area.
Then, there are also PT Melawai Jaya Realty for Blok M-Sisingamangaraja TOD Area and PT Adhi Commuter Properti for Jabodebek LRT station areas.
Additionally, partnerships for asset development in MRT TOD areas have been established with various entities, including PT TCP Internusa in Glodok-Kota Tua, Perumda Pembangunan Sarana Karya in Lebak Bulus and Cikini, PT Biru International in Glodok, PT Pasaraya Tosersajaya in Blok M-Sisingamangaraja, and Perusahaan Gas Negara.
In 2023, a total of 56 tenants occupied spaces in Jakarta MRT stations, including 40 regular retail tenants and 16 micro, small, and medium enterprises (MSMEs).
