Japan, UK, and South Korea interested in Jakarta MRT project
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 - Jepang, Inggris, dan Korsel minati proyek MRT Jakarta
15 November 2022
By: Amrozi Amenan
Japan, the UK, and South Korea are interested in Jakarta MRT development project. They are taking advantage of the momentum from Indonesia’s presidency at the G20 Summit in Bali to sign a memorandum of understanding (MoU) with Indonesia regarding the urban mass transportation project on Monday (14/11/2022).
The signing of the MoU with Japan and the UK is attended by Transportation Minister Budi Karya Sumadi, Deputy Minister for Foreign Cooperation of Japan Satoru Mizushima, UK Ambassador to Indonesia and Timor Leste Owen Jenkins, and Acting Jakarta Governor Heru Budi Hartono.
Moreover, the first MoU signed is a memorandum of cooperation (MoC) between the Indonesian government and the Japanese government regarding the continuity of the construction of East-West Line Phase 1 of Jakarta MRT. The next one is the letter of intent (LoI) between the Indonesian government and the UK government regarding the cooperation to construct Jakarta MRT.
During the occasion, the Transportation Minister said that there are currently many countries that want to invest in the construction of transportation infrastructures in Indonesia, especially MRT.
“Japan and the UK are two of Indonesia’s strategic partners that have established cooperation numerous times that are mutually beneficial in various sectors, including the transportation sector,” the Transportation Minister said in an official statement on Monday (14/11/2022).
The Transportation Minister hopes that the MoU will accelerate the MRT development in Jakarta, which can be the solution to reduce traffic jams and for an eco-friendly public transportation to reduce pollution and improve air quality.
The Transportation Minister also said that the momentum from Indonesia’s presidency at the G20 Summit this year was utilised to look for cooperation opportunities to construct transportation infrastructures with many countries through non-state budget (APBN) creative funding. This is carried out so that transportation infrastructure construction can continuously be carried out to improve connectivity and the state’s competitiveness amid the limited APBN.
“In line with the mandate from the President that states that the development of urban mass transportation, such as Jakarta MRT, is crucial to be carried out. Jakarta is currently reckoned as a city that is quite representative to provide examples of urban mass transportation development. Other locations that are currently conducting studies regarding MRT and LRT are Medan, Bandung, Surabaya, and Bali,” the Transportation Minister stated.
During the occasion, UK Ambassador to Indonesia and Timor Leste Owen Jenkins revealed that he was proud that the UK had taken part in the development of railway transportation in Indonesia, including in the first phase of East-West Jakarta MRT and Jakarta LRT.
“The UK is always ready to support the Transportation Ministry and Jakarta Government to develop the next phases of the MRT. UK Export Finance also issued an Expression of Interest to prepare a funding of US$1.25 billion. We are ready to collaborate with all partners to bring this cooperation to the next step,” Owen said.
Meanwhile, Deputy Minister for Foreign Cooperation of Japan Satoru Mizushima said that Japan had participated in the construction of the South-North corridor (Lebak Bulus-HI) of Jakarta MRT that has been inaugurated by the President in March 2019.
He believes that the cooperation experience between the two countries in constructing the MRT will facilitate the construction of the next MRT corridor, which is the east-west corridor.
“I hope that the continuity of the cooperation will improve the cooperation between the two countries in the future in the railways sector,” he said.
MRT Phase 4
Furthermore, South Korea is following in the steps of Japan and the UK to state their interest to participate in Jakarta MRT development project. The Indonesian government and the South Korean government on Monday (14/11/2022) in Bali signed the MoU on the construction of Jakarta MRT phase 4, which is the Fatmawati-Kampung Rambutan route.
The signing was attended by Transportation Minister Budi Karya Sumadi, Land, Infrastructure, and Transportation Minister of South Korea Won Hee-Ryong, Indonesian Ambassador to South Korea Gandi Sulistiyanto, and Acting Jakarta Governor Heru Budi Hartono.
The MoU signed with South Korea is a follow up to the discussion at the 28th ASEAN Transport Minister Meeting held from 16 to 17 October 2022 in Bali. During the bilateral meeting, South Korea stated their interest to participate in the construction of Jakarta MRT phase 4, which is the Fatmawati-Kampung Rambutan route.
The Transportation Minister said that Indonesia and South Korea have a close relationship. Both countries are intensively opening various cooperation opportunities, including in the transportation sector.
“I conducted a work visit to South Korea in June 2022 to open a cooperation opportunity with the South Korean government. I stated my gratitude and appreciation to South Korea. Finally, today, both countries have reached a mutual understanding with the signing of the MoU,” the Transportation Minister said.
The Transportation Minister hopes that the MoU with South Korea will be the initial step to accelerate MRT development in Jakarta, which can be the solution to reduce traffic jams and for an eco-friendly public transportation to reduce pollution and improve air quality.
“Both countries will continue to improve their cooperation not only in the railways sector, but also in the land, sea, and air sectors,” the Transportation Minister said.
