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Second phase MRT hit by cost overrun, land issues

Source
Jakarta Post - August 25, 2022

Fadhil Haidar Sulaeman, Jakarta – One of the strategic infrastructure projects in Indonesia, the capital's MRT North-South construction, succumbs to ballooning costs, mimicking similar issues that have happened in other public transportation projects.

After a meeting with President Joko "Jokowi" Widodo on Wednesday, Coordinating Economic Minister Airlangga Hartarto announced that the cost of the second phase of the MRT expansion has increased by 15.5 percent from its initial estimation to Rp 26 trillion (US$2.5 billion).

"The length of the North-South [railway] expansion is 12.3 kilometers, and all of it goes underground. Unlike the previous one [the first phase] of 15.7 km, of which 5.7 km was underground and 10 km elevated," Airlangga told reporters.

The initial plan for the second phase of the MRT consisted of two parts: Phase 2A with seven underground stations from Bundaran HI MRT in Central Jakarta to Kota Tua in West Jakarta, where a Commuter Line station currently exists, and Phase 2B, which was planned to consist of three stations that stretched from Bundaran HI in Central Jakarta to Ancol in North Jakarta, where a Commuter Line station also exists.

The North-South expansion project was included as a National Strategic Project (PSN) as per Presidential Regulation No. 56/2018.

After a thorough review, Airlangga continued, it was determined that more funds are needed to build the MRT station at Kota Tua due to the unstable land in the area, which requires a more complex construction scheme. "We need to be more careful from a structural standpoint," Airlangga said.

Another issue that plagues the project includes the planned train depot in West Ancol, where Airlangga mentioned that "land issues" hampers progress in this area.

As a result of this development, President Jokowi instructed his subordinates to map out alternatives for the depot location in Ancol or Marina, where MRT stations are planned to be built.

Previously, the initial plan was for the depot location to be built upon land owned by railway operator PT. Kereta Api Indonesia (KAI) in the Kampung Bandan subdistrict, but was relocated to West Ancol as the plot had already been leased.

Source: https://www.thejakartapost.com/business/2022/08/25/second-phase-mrt-hit-by-cost-overrun-land-issues.htm

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