JAKARTA. City-owned developer PT Jakarta Propertindo (Jakpro) is set to start construction of the light rapid transit (LRT) system dedicated for the 2018 Asian Games, following the issuance of a government regulation that allows the company to directly appoint a partner to work the US$338 million project.

Jakpro president director Satya Heragandhi has said he has received a copy of the 2016 Government Regulation on construction services, which was signed by President Joko Widodo on Nov 21.

The regulation stipulates that a city-owned company tasked with carrying out national strategic projects like the LRT can directly appoint a partner without having to go through a regular tender process.

With the regulation, Jakpro can now appoint a partner to construct the LRT, connecting an Asian Games venue in Kelapa Gading, North Jakarta, to Rawamangun Velodrome in East Jakarta.

“We already have a company in mind. Now that the regulation has been signed, we can announce it to the public,” he said.

Satya said although his company had the right to directly appoint a partner, Jakpro decided to conduct a “beauty contest” to find the best teammate.

“Nine state-owned companies have joined the contest and we already have narrowed them down to three to pick the winner,” he said.

He said the contest was carried out to ensure that Jakpro’s eventual partner could execute the plan properly as it had limited time before the Asian Games in August 2018.

The idea of building the LRT network, which would encompass 123.7 kilometers and seven lines, came from Jakarta Governor Basuki “Ahok” Tjahaja Purnama in December 2014.

However, realization of the project suffered delays as it overlapped with other major transportation projects.

Planned to be a 24-kilometer loop line connecting Kelapa Gading and Dukuh Atas in Central Jakarta, the first phase of the project will only cover 6 kilometers and four stations--Kelapa Gading as the depot, BritAma Arena in Kelapa Gading, Pulomas horse racetrack and Rawamangun Velodrome, both in East Jakarta.

He said the appointed contractor may not be the one offering the cheapest price, as what mattered was its capabilities in executing the project.

“We have hired an independent consultant from abroad to make sure that the winner is the right one,” he said, adding that he was careful as it was the first railway project for Jakpro.

Jakpro will likely announce its partner in the next seven days, allowing time for any grievances to be addressed from the losing companies. “Afterward, the [project’s] procurement and construction can be commenced,” he said.

Besides this project being undertaken by Jakpro, two other LRT projects are also occurring in Palembang by state-owned Waskita Karya and in Greater Jakarta by state-owned PT Adhi Karya.

Satya said while waiting for the regulation to be signed, his company had also been making preparations so that construction would not be further hampered. “Seventy-five percent of the land clearance and soil testing has been completed,” he said.

He said his company also had conducted market sounding for purchasing rolling stocks. “It takes 24 to 28 months to produce rolling stocks. So, time is tight,” he said, adding that he had secured one company’s services who promised it could produce rolling stocks within limited time.

“The administrative issues have been solved. They are able to focus on the construction process now,” Jakarta Development Planning Body head Tuty Kusumawati said. (Corry Elyda)

Editor: Barratut Taqiyyah Rafie