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Jakarta Governor Joko “Jokowi” Widodo is putting pressure on the Japan International Cooperation Agency (JICA) and the World Bank over loan agreements meant to finance Jakarta’s two huge construction projects.
JICA will partly fund the first phase of the 15.7-kilometer mass rapid transit (MRT), which is due to begin this year, with a ¥120 billion (US$1.27 billion) soft loan.
The World Bank will provide $150 million in loans to finance the plan to dredge 13 waterways and dams under the Jakarta Emergency Dredging Initiative (JEDI), or the Jakarta Urgent Flood Mitigation Project (JUMFP) as it is now called.
“All of us should be more assertive to say no. I have heard that the World Bank has attached complicated terms and conditions along with the Rp 1.2 trillion loan,” he told a development planning meeting at City Hall on Tuesday.
“I say, it’s not worth it: we have Rp 10 trillion of unspent funds left over from last year’s budget,” he said.
Jokowi is upbeat that both loan providers will agree to his demands.
“If we have to wait three months before JICA evaluates and approves the MRT project contracts, I’d rather say no. I want an answer in two weeks,” he continued.
Speaking to reporters after the meeting, the governor was determined to renegotiate unfavorable clauses in the agreements with the World Bank and JICA.
The governor also wants to renegotiate the loan ceiling.
“We can be confident because we have money,” Jokowi said. “My message was: don’t dictate to us.”
He said that he had formally requested that JICA shorten the contract assessment from three months to two weeks to get started on construction.
He also demanded that the administration be allowed to involve a neutral party as a project advisor and supervisor.
“Japan is already involved in the design, construction and in providing the loan so I want a third party from a neutral country to supervise the execution.”
Jokowi and several city officials met Singaporean authorities over the weekend to talk about the MRT to ask representatives from Singapore MRT to become advisors to the Jakarta project.
The first MRT track, connecting Lebak Bulus in South Jakarta to the Hotel Indonesia traffic circle in Central Jakarta, will have six underground stations, seven elevated stations and will carry around 173,000 passengers per day.
Public Works Minister Djoko Kirmanto shared the governor’s views, saying he was disappointed with the progress of the dredging project.
“We worked hard on our plan but they keep rejecting it. I have said for a very long time that we shouldn’t borrow foreign funds, now I have Pak Jokowi supporting my stance,” he said as quoted by kompas.com.
Deputy Finance Minister Anny Ratnawati said the ministry would evaluate the city administration’s request.
“First, the administration has to make sure that it has completed all of last year’s projects,” she said.
In a statement emailed to The Jakarta Post, the World Bank Indonesia country office said that it was determined to start the dredging project soon.
“The tendering for the project works is underway and we look forward to the start of dredging activities very soon.”
“The Jakarta administration is responsible for any required resettlement, but will need to follow the agreed and disclosed resettlement policy framework and prepared resettlement plans, must consult with the affected people and resettlement approved by the World Bank.”
Jokowi puts heat on JICA, WB
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