Jica funds first subway in Jakarta

The Japan International Cooperation Agency (Jica) signed a loan agreement with Indonesia in the amount of Y77.137- billion to help mitigate traffic congestion through the construction of mass rapid transit system. 

The loan will finance the construction of Jakarta Mass Rapid Transit Project (II) and Engineering Services for Jakarta Mass Rapid Transit East-West Line Project (Phase I).

This project will enhance the passenger transportation capacity and alleviate serious traffic congestion of the Jakarta metropolitan area through the construction of a mass rapid transit (MRT) system with Indonesia’s first subway in the Jakarta metropolitan area.

The loan is to be allocated to civil and track works, electrical and mechanical systems, rolling stock, consulting services and other areas.

The RPJMN issued by the Indonesian government lists “expansion of public transportation in urban areas” as a major development target.

In addition to an MRT North-South Line with what will be Indonesia’s first subway, the MRT system to be constructed has been highly prioritized by the Indonesian government as a means to alleviate the severe traffic congestion and reduce the traffic pollution in the Jakarta area.

The population in the Jakarta metropolitan area is approximately 28 million people (2010), an increase of about 1.3 times over the past decade (average annual growth rate: 2.8 percent).

The number of commuters from the suburbs to the center of Jakarta has rapidly increased by 1,5 times over the past decade (from 743,000 in 2002 to 1.105 million in 2010), and the number of registered vehicles in Jakarta metropolitan area has rapidly increased as well, by about 3.6 times (from 2.67 million in 2000 to 9.63 million in 2010).

With this growth, urban environmental degradation, including severe traffic congestion and air pollution has become a serious problem.