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 - Pembangunan proyek MRT koridor timur-barat dipercepat
18 January 2024
Jakarta, ID – The government is actively advancing the construction of MRT East-West Corridor Phase 1 Stage 1, which is a national strategic project (PSN).
During the coordination meeting to prepare for the construction of MRT East-West Corridor Phase 1 Stage 1, Coordinating Minister for Economic Affairs Airlangga Hartarto mentioned that accelerating the PSN was a step to develop the mass transportation system in Jakarta and its surroundings.
“We hope that it can reduce traffic jams and increase interregional connectivity in Jakarta and its surroundings,” Airlangga said in Jakarta on Wednesday (17/1/2024).
The project will be realised with the support of an international partner, Japan International Cooperation Agency (JICA), which has committed to supporting infrastructure development in Indonesia.
MRT East-West Corridor project consists of two phases, the first phase covers the Kembangan-Medan Satria route spanning 39.3 kilometres (km) and the second phase spans 50.4 km from Balaraja-Kembangan to Medan Satria-Cikarang.
“It is an infrastructure, in the context of national strategic projects, they tend to cross areas and regions. The most important aspect is the investor. The project’s operator is there. The operation is clear. The ownership of MRT’s operation is also clear. PT MRT is also clear,” Airlangga stated.
Coordinating Minister Airlangga underlined that MRT East-West Corridor Phase 1 Stage 1 would not only reduce traffic jams, but it would also serve as a symbol of progress and innovation for Indonesia’s transportation infrastructure development.
Furthermore, the minutes of discussion for MRT East-West Corridor Phase 1 Stage 1 among JICA, the Transportation Ministry, Bappenas, Jakarta Provincial Government, and MRTJ has been signed in November 2023. This marks a concrete step to realise the project.
With strong funding support from JICA amounting to US$3 billion, the project is expected to significantly contribute to the improvement of the quality of life and mobility of citizens in Jakarta and its surroundings
A cooperation commitment has also been stated when President Joko Widodo (Jokowi) and Japanese Prime Minister Fumio Kishida signed a pledge to construct MRT East-West Corridor on 16 December 2023.
As a follow-up to the coordination meeting, Coordinating Minister Airlangga will release Coordinating Minister Regulation on East-West MRT Implementation. This regulation will serve as the foundation for the loan negotiation and signing, scheduled to take place in March 2024.
He is dedicated to consistently monitor and ensure the project's construction through a robust synergy among the central government, the regional government, and the international partner. Airlangga also emphasised the importance of the project as an effort to improve the mass transportation system in the capital city.
Meanwhile, Transportation Minister Budi Karya Sumadi, who also attended the meeting, supports the implementation of MRT East-West Corridor as well.
The institutions involved in the project include the Transportation Ministry as the executing agency, Jakarta Provincial Government as the implementing agency, and PT MRT Jakarta as the sub-implementing agency. In terms of financing, the loan proportion has been agreed on to be 49% on-granting and 51% on-lending.
Jakarta Provincial Government is also committed to carrying out the land procurement in Jakarta. Besides that, the central government and other regional governments involved have also committed to ensuring the land procurement, the implementation, and the operation of MRT East-West Corridor to be carried out excellently.
Airlangga also stated that MRT East-West Corridor was a national strategic project that will continue to be accelerated based on the directive of President Jokowi. In 2024, all PSNs are set to be completed or to at least conduct financial close or groundbreaking. The directive is a guideline for all stakeholders involved, groundbreaking for MRT East-West Corridor is set to be carried out in August 2024.
