Growth phase: Commuters at a train station in Jakarta. The city is poised to expand its MRT system this year. — Bloomberg
JAKARTA: Japanese companies are looking into investing in transit-oriented development (TOD) hubs around key mass rapid transit (MRT) stations in Jakarta, according to a Japanese senior official.
Speaking to The Jakarta Post on Monday, Japan’s Economic Affairs Minister Hajime Ueda said several private firms across various sectors were actively exploring investment opportunities in TOD hubs, areas within a 700-metre radius from the commuting points, akin to models used in Japan.
These hubs are around the Bundaran HI, Dukuh Atas and Lebak Bulus stations.
The Jakarta administration wrote in April 2023 that the TODs would also include affordable housing along with retail centres.
“Japanese companies are viewing the opportunity positively. There are a couple of individual companies who are already engaged in making business plans and finance schemes with their Indonesian counterparts,” he said, without disclosing the companies’ names.
This proposed collaboration comes on the heels of a visit by Transportation Minister Budi Karya Sumadi to Tokyo on April 25.
During his trip, he presented six investment projects accepting bids: a mixed-use complex development at Blok M, a pedestrian deck at Dukuh Atas, the revitalisation of Sudirman Station, extended concourses at Bundaran HI and Fatmawati and a reservoir revitalisation project at Setiabudi.
The MRT has become one of the most important transportation networks in Jakarta since the first phase of the North-South line opened in 2019, with the help of the Japanese government.
Japan had also been pushing to start construction of the East-West line since last year.
To be built in multiple phases, the first phase would initially connect a 33-kilometre line between Tomang in West Jakarta and Medan Satria in East Jakarta, before eventually stretching 90km to Balaraja in Banten, and Cikarang in West Java, upon its completion in 2032.
The first phase would also be split into two stages.
The first covers a 24.5km line with construction to begin by mid-2024, following the agreement of a yen-denominated loan on Monday involving the Japan International Cooperation Agency.
The 140.69 billion yen loan carries an interest rate of 0.3% and a 40-year repayment period that includes a 10-year grace period.
The agreement also falls under the Special Terms for Economic Partnership (STEP) programme, meaning that Japanese firms would be directly involved in the project’s construction, facilitating technology transfer to local partners.
The technology transfer would focus on areas such as underground-tunnel construction, train technology and signalling systems.
Currently, both Indonesia and Japan are working on the North-South line’s second phase in Jakarta, extending it to the north from the existing 16km between Lebak Bulus and Bundaran HI to a total of 28km ending in Kota.
“With the participation of Japanese companies and efforts from the Japanese government, commuters using the MRT can benefit from a convenient lifestyle,” Minister Ueda said.
“We’re committed to support Indonesia’s efforts to make Jakarta safer and more comfortable,” he added.
Experts viewed that the sustainability of transit-oriented development projects would require more than just strategic locations.
Indonesian Transportation Society or MTI railway forum head Aditya Dwi Laksana told the Post on Monday that the success of the TODs would hinge on the affordability of housing projects provided as well as a developed culture of living in vertical housing.
“It must integrate office, commercial and residential spaces while ensuring it is walkable and easy to access,” Aditya said, reflecting on existing TOD hubs built in other parts of the city.
Jakarta previously built TOD hubs for other transportation modes, such as trains, buses and mikrolet (minibuses) as well as the commuter line or KRL, such as those located in Pasar Senen and Pondok Cina. — The Jakarta Post/ANN
