Govt full steam ahead on Manggarai rail project

The Jakarta Post, Jakarta | Tue, 07/27/2010 9:28 AM

The government will accelerate the development of the Rp 4.6 trillion (US$510.6 million) railway project linking Manggarai railway station and Soekarno-Hatta International Airport to ease congestion along routes to the city’s gateway, says the top economic minister.

Speaking to reporters following a meeting at his office on Monday, Coordinating Economic Minister

Hatta Rajasa said the proposed law on the use of land for public interests was now being finalized in order to solve the land clearance problems that often hamper infrastructure projects.

“I hope [the law] can be enacted this year,” he said.

He said land-clearance was one of the biggest obstacles in the development of the railway project initiated by PT Railink, a company established by state-airport operator PT Angkasa Pura II and state-railway company PT Kereta Api Indonesia (KAI).

The 33-kilometer railway between Manggarai railway station and the airport will have the capacity to carry 24,109 passengers a day.

“We have asked the National Land Agency [BPN] to show the progress of the law drafting,” Hatta said, adding that the country’s lack of infrastructure remained the biggest obstacle for many investors. 

Meanwhile, Investment Coordinating Board head Gita Wirjawan said the government had seen many public-private partnership projects stagnate due to land-clearance issues.

“[Land clearance] is the most difficult problem we’ve experienced,” he said, adding that BPN head Joyo Winoto promised to soon complete the drafting of the law on land development for public use.

He said the existence of a policy permitting land acquisitions direly needed for the expansion of

their businesses and investments had not worked in streamlining the process.

“They have to directly resolve it with the land owners, and it’s not an easy process despite the existence of a law giving permits on land acquisition,” he said.

However, he said, land clearance would be the utmost interest due to the government’s investment

targets.

“We should have a certain policy that gives investors positive signs of improvement in the investment climate,” he said.

He said that land-clearing problems had been appropriately handled by the BPN, which assured it would finish drafting the law this year. (ebf)