Indonesia Launches its first MRT

It's finally arrived; Jakarta has commissioned its first Mass Transport system, the first such system in Indonesia. A project fraught with difficulty, taking longer than expected with development stopping frequently.

The system has been on trial since December, testing all supporting systems, electronic gates as well as the reactions of emergency services should the need arise.  Services will operate from March 12th, 2019.

In the past week the proud authorities invited government officials, ambassadors and journalists to trial the first MRT in Indonesia.

The final touches are taking place. They're busy touching up the paint, polishing fittings on the MRT stations' interior and walkways.

If the public trial run goes off without a hitch, the country's first MRT will start commercial operation by the end of next month.

The route initially will operate from Lebak Bulus in South Jakarta to the Hotel Indonesia traffic circle in Central Jakarta, a distance of 15.7KM. There are 13 stops, journey should take approx. 30 minutes. This will halve the time of a normal commute. For a city with more than 25M people this is significant.

Capacity

A single MRT train comprises six carriages which can carry up to 1,950 passengers. By 2024, the MRT is expected tocarry up to 430,000 passengers a day.

EU Ambassador to Indonesia Vincent Guérend has sung his praises for the Jakarta MRT, saying he loved the modern look and its well-thought-out amenities.

When he went on his trial run last week, the ambassador remarked the Jakarta MRT even appeared more modern than some old subway trains in European countries.

EU Ambassador to Indonesia Vincent Guérend, right, speaks with Ghamal Peris, MRT Jakarta's business development director, during a trial run of the MRT on Feb. 12. (Antara Photo/Rivan Awal Lingga).

Naming Rights.

MRT Jakarta is selling naming rights for eight stations on the Lebak Bulus-Bundaran Hotel Indonesia line, which allow a company to attach its brand name to a station for 10 years.

Naming rights for three stations have already been bought by state-controlled lender Bank Negara Indonesia for the Dukuh Atas-BNI Station; another state-owned lender Bank Mandiri for the Istora-Mandiri Station; and Astra International for the Setiabudi-Astra Station.

The naming rights for five more stations—Bendungan Hilir, Blok M, Senayan, Lebak Bulus and Sisingamangaraja—are still up for auction.

Investments

The Lebak Bulus-Bundaran Hotel Indonesia line makes up Phase 1 of the Jakarta MRT network which will eventually cover a total distance of 110 kilometers, linking the sprawling city's north, south, east and west.

Japan International Cooperation Agency (JICA) loaned Rp 16 trillion to the Jakarta administration for the Phase 1 construction.

Suppliers & Contractors

• The MRT trains are produced by Japanese rail car manufacturer Nippon Sharyo, a subsidiary of Central Japan Railway Company.

• Jakarta MRT bought 16 of their made-in-Japan trains for Rp 1.6 trillion. All of them arrived in Jakarta last year.

• A consortium of Japanese constructor Shimitsu Kobayashi, state-owned builder Wijaya Karya and Jaya Konstruksi worked on two sections of the underground track.

• Another consortium of Sumitomo Mitsui and Hutama Karya worked on the remaining underground track.

• Japanese railway company Tokyu and state-owned constructor Wijaya Arya built two sections of the elevated track.

• Japanese firms Obayashi and Shimizu formed a joint venture with local firm Jaya Konstruksi to build the remaining elevated track.

Future Lines

On Oct. 23 last year, the Japan International Cooperation Agency (JICA) agreed to loan Rp 9.4 trillion to the Jakarta Provincial Government for Phase 2 of the MRT project to build a line from Sarinah to Kota.

This is the first of two instalments which will be used to fund the first stage of construction in Phase 2.

• Phase 2: Sarinah to Kota, track length: 7.8 kilometers, 7 underground stations: Sarinah, Monas, Harmoni, Sawah Besar, Mangga Besar, Glodok, Kota. Phase 2 construction is set to begin in March 2019.

• Phase 3: Cikarang to Jakarta, track length: 87 kilometers, this line will run from east to west, connecting Cikarang and Balaraja with Jakarta. Phase 3 construction is planned to begin in 2020.

It's finally arrived; Jakarta has commissioned its first Mass Transport system, the first such system in Indonesia. A project fraught with difficulty, taking longer than expected with development stopping frequently.

The system has been on trial since December, testing all supporting systems, electronic gates as well as the reactions of emergency services should the need arise.  Services will operate from March 12th, 2019.

In the past week the proud authorities invited government officials, ambassadors and journalists to trial the first MRT in Indonesia.

The final touches are taking place. They're busy touching up the paint, polishing fittings on the MRT stations' interior and walkways.

If the public trial run goes off without a hitch, the country's first MRT will start commercial operation by the end of next month.

The route initially will operate from Lebak Bulus in South Jakarta to the Hotel Indonesia traffic circle in Central Jakarta, a distance of 15.7KM. There are 13 stops, journey should take approx. 30 minutes. This will halve the time of a normal commute. For a city with more than 25M people this is significant.

Capacity

A single MRT train comprises six carriages which can carry up to 1,950 passengers. By 2024, the MRT is expected tocarry up to 430,000 passengers a day.

EU Ambassador to Indonesia Vincent Guérend has sung his praises for the Jakarta MRT, saying he loved the modern look and its well-thought-out amenities.

When he went on his trial run last week, the ambassador remarked the Jakarta MRT even appeared more modern than some old subway trains in European countries.

EU Ambassador to Indonesia Vincent Guérend, right, speaks with Ghamal Peris, MRT Jakarta's business development director, during a trial run of the MRT on Feb. 12. (Antara Photo/Rivan Awal Lingga).

Naming Rights.

MRT Jakarta is selling naming rights for eight stations on the Lebak Bulus-Bundaran Hotel Indonesia line, which allow a company to attach its brand name to a station for 10 years.

Naming rights for three stations have already been bought by state-controlled lender Bank Negara Indonesia for the Dukuh Atas-BNI Station; another state-owned lender Bank Mandiri for the Istora-Mandiri Station; and Astra International for the Setiabudi-Astra Station.

The naming rights for five more stations—Bendungan Hilir, Blok M, Senayan, Lebak Bulus and Sisingamangaraja—are still up for auction.

Investments

The Lebak Bulus-Bundaran Hotel Indonesia line makes up Phase 1 of the Jakarta MRT network which will eventually cover a total distance of 110 kilometers, linking the sprawling city's north, south, east and west.

Japan International Cooperation Agency (JICA) loaned Rp 16 trillion to the Jakarta administration for the Phase 1 construction.

Suppliers & Contractors

• The MRT trains are produced by Japanese rail car manufacturer Nippon Sharyo, a subsidiary of Central Japan Railway Company.

• Jakarta MRT bought 16 of their made-in-Japan trains for Rp 1.6 trillion. All of them arrived in Jakarta last year.

• A consortium of Japanese constructor Shimitsu Kobayashi, state-owned builder Wijaya Karya and Jaya Konstruksi worked on two sections of the underground track.

• Another consortium of Sumitomo Mitsui and Hutama Karya worked on the remaining underground track.

• Japanese railway company Tokyu and state-owned constructor Wijaya Arya built two sections of the elevated track.

• Japanese firms Obayashi and Shimizu formed a joint venture with local firm Jaya Konstruksi to build the remaining elevated track.

Future Lines

On Oct. 23 last year, the Japan International Cooperation Agency (JICA) agreed to loan Rp 9.4 trillion to the Jakarta Provincial Government for Phase 2 of the MRT project to build a line from Sarinah to Kota.

This is the first of two instalments which will be used to fund the first stage of construction in Phase 2.

• Phase 2: Sarinah to Kota, track length: 7.8 kilometers, 7 underground stations: Sarinah, Monas, Harmoni, Sawah Besar, Mangga Besar, Glodok, Kota. Phase 2 construction is set to begin in March 2019.

• Phase 3: Cikarang to Jakarta, track length: 87 kilometers, this line will run from east to west, connecting Cikarang and Balaraja with Jakarta. Phase 3 construction is planned to begin in 2020.

For Success First Appreciate The Past

To do business in Indonesia you first have to understand certain elements of history. Struggles, Occupation, Independence, Communist tendencies and Authoritarian regimes, which have led to this point today.

Indonesia's technically was colonized by the Dutch for a 126 years. Indonesia’s view is this period ended in 1942 as the Japanese rolled in taking control for a further 3 years. It's important to point out the vastness of the Indonesian archipelago, overlaid on Europe it would stretch from London to Tehran. The Dutch cherry picked parts of Indonesia which were important for trade and logistics, they never really took total control. In fact the Indonesian were grouped into Kingdoms with each leader taking responsibility for their individual part corralling their like-minded people into tribes, led by a sultan or King.

I say the Dutch colonial period terminated in 1942, which is not strictly true. After the war ended and the Japanese surrendered the Dutch attempted a return.  By now the Indonesian had mustered a kind of guerrilla warfare experience whilst making life difficult for the Japanese.  Needless to say colonial incursion were no longer tolerated.

The period that followed was brutal the Dutch Army were in many instances likened to the Nazi's with their behaviour and atrocities that followed prior to full independence. No story can be complete until you write about Christmas of 1946. A Battalion under the command of Captain Raymond Westerling moved on the South Celebes, now known as Sulawesi over a two-month period they wiped villages off the map killing 4,000 people.  This was a war crime which has never been atoned for.  The irony in this situation was that whilst this barbaric act took place.  Nazis were being tried at The Hague for similar atrocities. President Sokarno declared Independence upon the Japanese surrender it took a further 3 years to rid the archipelago of the murderous atrocities to finally win freedom.

The Asia struggles were far from over as the Russian army were sweeping down through Manchuria and into the Korean Peninsula. China was in a state of civil war ending in 1949 with the victor being the Communist leader Mao Zedong over the Nationalist army of Chiang Kai-shek, whose Kuomintang retreated from the mainland onto Taiwan. Taiwan was given tolerance as Mao was unwilling to pursue further allowing Chiang Kai-shek to save face in a way the Chinese only understand.

Of course Vietnam became a focus as did South Korea. Much has been documented on this point. In the 60s Indonesia fell under the control of Suharto a brutal dictator given free rein by his American backers.  Suharto ruled for a further 32 years, that is until the end of the cold war. Some would say he was kept in power for the few years following the fall of the Berlin wall by his very canny wife Siti (Tien) Hartinah m. 1947–1996. Tien Suharto was widely reported as the power behind her husband’s throne, a meddling and unscrupulous woman who gave a new meaning to financial corruption. She was called Ibu Negara, Mother of the Nation, and she never let anyone forget that she, unlike her husband, was descended from royal stock. According to local belief it was she, because of her descent, who possessed the wahyu, or gift of power. Now that she was dead, her husband can no longer lay claim to it.

After her death the Soharto dynasty was collapsing giving way in 1998 to a true democracy in transition, not glossing over this as the fall of Soharto was not a smooth affair.  The country erupted into a short civil war. Students were rioting, gangs were forming on all major arteries, I remember this well as I was in the heart of the city on the 24th floor of a major telecom operators office building putting together a 5-year plan, we abandoned the meeting recognizing the stupidity of the situation as no one could be clear as to the next day let alone look 5 years out.  The brunt of the anger was metered out to the Chinese communities many were killed others fled for their lives. My journey that day was onto London but my trip through the marauding masses was not so easy. My driver Wayan was excellent, and we made it to the airport unscathed. Many Indonesian Chinese were also there, their journey more fraught than mine. Most had travelled in the boot of their car, some wrapped in carpets.  On my arrival in London I was met by the MOD who later visited me in my hotel to strategies a military led evacuation of Brits in Jakarta. Strange times indeed.

Here we are some 20 years later with a leader, imaginative, honest and intent on breaking the elites past strangle hold, this he is doing at incredible speed.

This is just a potted history lesson, over time I may embellish in greater detail but for now the purpose of this blog is to show the future this dynamic democracy has and the opportunities it holds to those that are prepared to step a toe into this country deemed to be the 5th biggest economy.  It would be wrong to say take a risk on this market because that would be a phrase you could use some 20 years ago.  This is now a maturing market full of opportunity. As the saying goes the best time to plant a tree was 20 years ago the 2nd best time is now!

To do business in Indonesia you first have to understand certain elements of history. Struggles, Occupation, Independence, Communist tendencies and Authoritarian regimes, which have led to this point today.

Indonesia's technically was colonized by the Dutch for a 126 years. Indonesia’s view is this period ended in 1942 as the Japanese rolled in taking control for a further 3 years. It's important to point out the vastness of the Indonesian archipelago, overlaid on Europe it would stretch from London to Tehran. The Dutch cherry picked parts of Indonesia which were important for trade and logistics, they never really took total control. In fact the Indonesian were grouped into Kingdoms with each leader taking responsibility for their individual part corralling their like-minded people into tribes, led by a sultan or King.

I say the Dutch colonial period terminated in 1942, which is not strictly true. After the war ended and the Japanese surrendered the Dutch attempted a return.  By now the Indonesian had mustered a kind of guerrilla warfare experience whilst making life difficult for the Japanese.  Needless to say colonial incursion were no longer tolerated.

The period that followed was brutal the Dutch Army were in many instances likened to the Nazi's with their behaviour and atrocities that followed prior to full independence. No story can be complete until you write about Christmas of 1946. A Battalion under the command of Captain Raymond Westerling moved on the South Celebes, now known as Sulawesi over a two-month period they wiped villages off the map killing 4,000 people.  This was a war crime which has never been atoned for.  The irony in this situation was that whilst this barbaric act took place.  Nazis were being tried at The Hague for similar atrocities. President Sokarno declared Independence upon the Japanese surrender it took a further 3 years to rid the archipelago of the murderous atrocities to finally win freedom.

The Asia struggles were far from over as the Russian army were sweeping down through Manchuria and into the Korean Peninsula. China was in a state of civil war ending in 1949 with the victor being the Communist leader Mao Zedong over the Nationalist army of Chiang Kai-shek, whose Kuomintang retreated from the mainland onto Taiwan. Taiwan was given tolerance as Mao was unwilling to pursue further allowing Chiang Kai-shek to save face in a way the Chinese only understand.

Of course Vietnam became a focus as did South Korea. Much has been documented on this point. In the 60s Indonesia fell under the control of Suharto a brutal dictator given free rein by his American backers.  Suharto ruled for a further 32 years, that is until the end of the cold war. Some would say he was kept in power for the few years following the fall of the Berlin wall by his very canny wife Siti (Tien) Hartinah m. 1947–1996. Tien Suharto was widely reported as the power behind her husband’s throne, a meddling and unscrupulous woman who gave a new meaning to financial corruption. She was called Ibu Negara, Mother of the Nation, and she never let anyone forget that she, unlike her husband, was descended from royal stock. According to local belief it was she, because of her descent, who possessed the wahyu, or gift of power. Now that she was dead, her husband can no longer lay claim to it.

After her death the Soharto dynasty was collapsing giving way in 1998 to a true democracy in transition, not glossing over this as the fall of Soharto was not a smooth affair.  The country erupted into a short civil war. Students were rioting, gangs were forming on all major arteries, I remember this well as I was in the heart of the city on the 24th floor of a major telecom operators office building putting together a 5-year plan, we abandoned the meeting recognizing the stupidity of the situation as no one could be clear as to the next day let alone look 5 years out.  The brunt of the anger was metered out to the Chinese communities many were killed others fled for their lives. My journey that day was onto London but my trip through the marauding masses was not so easy. My driver Wayan was excellent, and we made it to the airport unscathed. Many Indonesian Chinese were also there, their journey more fraught than mine. Most had travelled in the boot of their car, some wrapped in carpets.  On my arrival in London I was met by the MOD who later visited me in my hotel to strategies a military led evacuation of Brits in Jakarta. Strange times indeed.

Here we are some 20 years later with a leader, imaginative, honest and intent on breaking the elites past strangle hold, this he is doing at incredible speed.

This is just a potted history lesson, over time I may embellish in greater detail but for now the purpose of this blog is to show the future this dynamic democracy has and the opportunities it holds to those that are prepared to step a toe into this country deemed to be the 5th biggest economy.  It would be wrong to say take a risk on this market because that would be a phrase you could use some 20 years ago.  This is now a maturing market full of opportunity. As the saying goes the best time to plant a tree was 20 years ago the 2nd best time is now!

Indonesia P.6 A Country Planning Its Capital City Move

Yesterday I spoke about a new airport, in fact 10 new airports. However, I singled one airport in particular, Tjilik Riwut. This airport is significant as it will most likely become the hub for the new capital city. For many years it has been a plan to move the government from Jakarta to potentially Kalimantan. This was considered back in the 60s during the reign of Sukarno, prior to Suharto. In fact, it has been a dream since the 40s, first considered at the time of their independence.

There is a pressing reason in which to do this, Jakarta is sinking. Over the last 10years Jakarta has sunk 2.5Metres with almost half the city now below sea level. The ground is absorbing the city. Some areas to the North are losing 25 cm per year. Worldwide many megacities close to coastal regions have a similar problem but Jakarta's problem is double the global average.

Kalimantan or to use its old designation Borneo is a perfect location for a new capital city. Again another example of the dynamic nature of this country.

The beneficiaries will of course be the infrastructure providers. Power,  Water purification, "Telecommunications network", roads, rail, bridges, ports, distribution, Cement manufacturers etc. The new airport terminal at a cost of $100sM whilst sizable is only a small part of the overall activity.

Jakarta is home to over 10M people and if this absorption continues unchecked then by 2050 most of the city will be underwater. It's predicted 95% of North Jakarta will have disappeared. The East and the West are not immune as they are sinking yearly at a rate of 15 cm and 10 cm respectively. Jakarta sits on swampy land with 13 major rivers passing through, whilst also having the Java sea lapping at its door.

Of course, significant work is required to prevent this city disappearing. Dykes, drainage, underpinning etc.  Overall in this vast archipelago we are still just touching the surface for the overall development taking place, this country marches forward to become the 5th largest economy.

Indonesia is located on what is known affectionately as the ring of fire, although there is nothing pleasant about it, situated on the World's major tectonic plates. Kalimantan is as far as you can be from these plates with earthquakes and Volcanic activity risk minimized.

Indonesia, for sure is ideal location to be established. Be aware the Chinese has targeted Indonesia with Indonesia signing up to the Chinese initiative known as the belt and road network.

Yesterday I spoke about a new airport, in fact 10 new airports. However, I singled one airport in particular, Tjilik Riwut. This airport is significant as it will most likely become the hub for the new capital city. For many years it has been a plan to move the government from Jakarta to potentially Kalimantan. This was considered back in the 60s during the reign of Sukarno, prior to Suharto. In fact, it has been a dream since the 40s, first considered at the time of their independence.

There is a pressing reason in which to do this, Jakarta is sinking. Over the last 10years Jakarta has sunk 2.5Metres with almost half the city now below sea level. The ground is absorbing the city. Some areas to the North are losing 25 cm per year. Worldwide many megacities close to coastal regions have a similar problem but Jakarta's problem is double the global average.

Kalimantan or to use its old designation Borneo is a perfect location for a new capital city. Again another example of the dynamic nature of this country.

The beneficiaries will of course be the infrastructure providers. Power,  Water purification, "Telecommunications network", roads, rail, bridges, ports, distribution, Cement manufacturers etc. The new airport terminal at a cost of $100sM whilst sizable is only a small part of the overall activity.

Jakarta is home to over 10M people and if this absorption continues unchecked then by 2050 most of the city will be underwater. It's predicted 95% of North Jakarta will have disappeared. The East and the West are not immune as they are sinking yearly at a rate of 15 cm and 10 cm respectively. Jakarta sits on swampy land with 13 major rivers passing through, whilst also having the Java sea lapping at its door.

Of course, significant work is required to prevent this city disappearing. Dykes, drainage, underpinning etc.  Overall in this vast archipelago we are still just touching the surface for the overall development taking place, this country marches forward to become the 5th largest economy.

Indonesia is located on what is known affectionately as the ring of fire, although there is nothing pleasant about it, situated on the World's major tectonic plates. Kalimantan is as far as you can be from these plates with earthquakes and Volcanic activity risk minimized.

Indonesia, for sure is ideal location to be established. Be aware the Chinese has targeted Indonesia with Indonesia signing up to the Chinese initiative known as the belt and road network.