Jakarta (ANTARA News) - Coordinating Minister of Economic Affairs Hatta Rajasa has stated that the Mass Rapid Transportation (MRT) fare of Rp38,000 (approximately US$3.95) will be too expensive for most passengers.

"As we know, a majority of passengers using the MRT will be from low- and middle-income classes. If the fare is set too high, they certainly cannot afford it," he said at the Indonesia Infrastructure Outlook 2013 event here on Tuesday.

Hatta noted that the MRT fare could be increased gradually over the next five years, as Indonesia`s per capita income is estimated to increase to US$7,000 over the period.

"When the purchasing power increases, higher MRT ticket prices are no longer a problem," he continued.

Hatta said the central government would help the Jakarta provincial government build the MRT in its efforts to reduce traffic congestion in the nation's capital city.

"The government will support all top-priority programs to improve Jakarta's condition, one of which is the MRT. Such an integrated transportation system is really needed by Jakartans," he stated.

"There is a rising need to overcome the traffic problem in Jakarta," Hatta added.

Based on research conducted by Yayasan Pelangi, economic losses due to traffic jams in Jakarta have been estimated to exceed Rp12.8 trillion (US$1.3 billion) per year, which includes losses relating to wasted time, fuel costs and health costs.

According to Hatta, the high cost of MRT construction can be shared by all parties participating in the MRT project, such as state-owned enterprises (SOEs).

Earlier, Minister of Finance Agus Martowardojo supported Jakarta Governor Joko Widodo's decision to review the feasibility and cost of MRT construction before running the project.

The minister expressed concern over the implementation of MRT project, because it had been planned since a long time ago but could not get under way.

"In fact, the MRT plan started in 2005, but the tender has not been completed yet. In my opinion, the project is supposed have been under way by now," he said.

The MRT project will mostly be funded by a soft loan of Rp3.1 trillion from the Japan International Cooperation Agency (JICA).

However, the future of the project remains uncertain because Jokowi is yet to be convinced that the project is feasible and will actually benefit the city.

He recently failed to give a go-ahead to the project, after a heated meeting with PT MRT Jakarta officials, transportation experts and residents who would be affected by the construction of the MRT.

(Y012/INE/A014)

Editor: Suryanto
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