Presidential Regulation Issued in Bid to Accelerate Construction of LRT System

 
Jasmine Abdurrachim
 

President Joko Widodo will issue a regulation for light rail transit. Photo by: RES

 

President Joko Widodo has long acknowledged the need for improved public transportation in and around the cities of Jakarta, Bogor and Bekasi, with the ultimate goal being to reduce the Indonesian capital’s ever increasing gridlock.
 
With this in mind, the President signed Presidential Regulation (“Regulation”) number 98 of 2015 on the Acceleration of Light Rail Transit (LRT) Implementation on 2 September 2015. This regulation is aiming to integrate the cities of Jakarta, Bogor, Depok, and Bekasi under a single urban-rail network. Details of the project can be found at: www.setkab.go.id
 
The new Presidential Regulation mandates for an LRT network covering the following routes: Transit Service (a), which will run from Cawang to Cibubur; Transit Service (b), which ply a Cawang – Kuningan – Dukuh Atas route; Transit Service (c), which will run from Cawang to East Bekasi.
 
Moreover, Transit Service (d), which will run a Dukuh Atas – Palmerah – Senayan route; Transit Service (e), which will run from Cibubur to Bogor; and finally, Transit Service (f), which will run from Palmerah to Bogor.
 
"In addition to the intended Transit Services, the Government may also specify other Transit Services in the future, and these will be regulated by the Minister of Transportation," states Article 1 paragraph (4) of the new Presidential Regulation.
 
Aside from outlining details of the putative LRT network, the new regulation also stipulates that construction of the integrated LRT facilities be undertaken and managed by PT Adhi Karya (Persero) Tbk. These facilities will include: (a) tracks, including the construction of all flyover tracks; (b) LRT stations; and (c) the requisite operating facilities.
 
As well as managing the construction of the new system, PT Adhi Karya will also be responsible for preparing the relevant technical and budgeting documents within a time limit of no longer than three months.
 
These documents are required to take into account the fact that the technical specifications of the LRT system should be in accordance with what has been decreed by the Minister of Transportation. Upon receipt of these documents, the Minister of Transportation will have 30 days to grant his approval.
 
In meeting the various challenges posed by the project, PT Adhi Karya may also assign other business entities, although the phases involved in the construction of the LRT infrastructure must be laid out in a written agreement between PT Adhi Karya (Persero) Tbk and the Ministry of Transportation.
 
Funding
During construction of the integrated LRT infrastructure, PT Adhi Karya will be funded via the State Budget, as well as other sources of funding, in accordance with national laws and regulations.
 
PT Adhi Karya will receive incremental payments for its work, as various parts of the network infrastructure are completed. Moreover, in order to prevent PT Adhi Karya from experiencing any legal or financial complications that may arise during the construction period, the Government and the relevant local authorities will waive and/or exempt the company from the applicable licensing fees, as well as tax and customs obligations, in accordance with national laws and regulations.
 
(sp)
 
Jasmine Abdurrachim
 

President Joko Widodo will issue a regulation for light rail transit. Photo by: RES

 

President Joko Widodo has long acknowledged the need for improved public transportation in and around the cities of Jakarta, Bogor and Bekasi, with the ultimate goal being to reduce the Indonesian capital’s ever increasing gridlock.
 
With this in mind, the President signed Presidential Regulation (“Regulation”) number 98 of 2015 on the Acceleration of Light Rail Transit (LRT) Implementation on 2 September 2015. This regulation is aiming to integrate the cities of Jakarta, Bogor, Depok, and Bekasi under a single urban-rail network. Details of the project can be found at: www.setkab.go.id
 
The new Presidential Regulation mandates for an LRT network covering the following routes: Transit Service (a), which will run from Cawang to Cibubur; Transit Service (b), which ply a Cawang – Kuningan – Dukuh Atas route; Transit Service (c), which will run from Cawang to East Bekasi.
 
Moreover, Transit Service (d), which will run a Dukuh Atas – Palmerah – Senayan route; Transit Service (e), which will run from Cibubur to Bogor; and finally, Transit Service (f), which will run from Palmerah to Bogor.
 
"In addition to the intended Transit Services, the Government may also specify other Transit Services in the future, and these will be regulated by the Minister of Transportation," states Article 1 paragraph (4) of the new Presidential Regulation.
 
Aside from outlining details of the putative LRT network, the new regulation also stipulates that construction of the integrated LRT facilities be undertaken and managed by PT Adhi Karya (Persero) Tbk. These facilities will include: (a) tracks, including the construction of all flyover tracks; (b) LRT stations; and (c) the requisite operating facilities.
 
As well as managing the construction of the new system, PT Adhi Karya will also be responsible for preparing the relevant technical and budgeting documents within a time limit of no longer than three months.
 
These documents are required to take into account the fact that the technical specifications of the LRT system should be in accordance with what has been decreed by the Minister of Transportation. Upon receipt of these documents, the Minister of Transportation will have 30 days to grant his approval.
 
In meeting the various challenges posed by the project, PT Adhi Karya may also assign other business entities, although the phases involved in the construction of the LRT infrastructure must be laid out in a written agreement between PT Adhi Karya (Persero) Tbk and the Ministry of Transportation.
 
Funding
During construction of the integrated LRT infrastructure, PT Adhi Karya will be funded via the State Budget, as well as other sources of funding, in accordance with national laws and regulations.
 
PT Adhi Karya will receive incremental payments for its work, as various parts of the network infrastructure are completed. Moreover, in order to prevent PT Adhi Karya from experiencing any legal or financial complications that may arise during the construction period, the Government and the relevant local authorities will waive and/or exempt the company from the applicable licensing fees, as well as tax and customs obligations, in accordance with national laws and regulations.
 
(sp)
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