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JAKARTA - Coordinating Minister for Economic Affairs Hatta Rajasa has stated that the construction of Mass Rapid Transport (MRT) is still constrained by the subsidy schemes that hamper the development plans of Jakarta provincial administration.
"Actually, under an investment-sharing agreement, the central government and the Jakarta provincial administration will contribute 42 percent and 58 percent, respectively, to the construction of the MRT," he said here on Tuesday. According to Hatta, the MRT ticket fare has been set at Rp38,000 (approximately US$3.95).
Earlier, Jakarta governor Joko Widodo (Jokowi) told Hatta that such a high fare would be unaffordable for a majority of the city's residents despite the provincial administrations subsidy. "We are still discussing a subsidy that would make the ticket affordable to the public without burdening the provincial administration's budget," he said.
Therefore, Jokowi stated that he would hold meetings to discuss the development of MRT as a means of mass transportation in Jakarta. "We will keep searching for the solution through discussions," he continued. Hatta said he had yet to decide on what the ideal fare for an MRT ticket should be.
"We will look at the fares of other means of mass transportation, such as the electric train and the Transjakarta Busway, and then set a fare that is affordable for the public. I do not want to speculate on it before I meet Jokowi," he added.
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