Jica signed a loan agreement with the government of Indonesia on October 24 2018 to provide the official development assistance (ODA) loans.

“The signing was an important milestone for Phase 2 of the MRT project,” says Jakarta governor, Mr Anies Baswedan. “We are hoping that MRT Jakarta can immediately start work in the field.”

The Jakarta Post reported the Finance Ministry’s director general of fiscal balance, Mr Astera Primanto Bhakti, said Yen 59.108bn of the loan would pay for civil works, Yen 6.311bn for consultation services and Yen 4.602bn for unforeseen expenses.

As the central government has declared the MRT as a national strategic project, Bhakti said the government would be responsible for repaying 49% of the loan, while the Jakarta administration would repay 51%.

Jica’s special terms for economic partnership (Step) apply to the loan. Mud pressure shield technology from Japan will be used in the civil engineering, and Jica says both rolling stock and signalling from Japan are also slated for use. Under Step, the main contract is Japan tied while subcontracting is untied.

Testing is underway on the 15.7km north-south Line 1 (phase one) from Hotel Indonesia Roundabout to Lebak Bulus and is due to open in March, while the second phase will extend the line to Kampung Bandan in west Jakarta.