16 April 2008

Arab Investors and the Jakarta Monorail Project

The activity at the House of Representatives (DPR) over the past week or so in passing legislation may actually pay off in both the figurative and literal senses. The DPR managed to pass a bill on Syariah-based Bonds which sets out the basic regulatory framework for the issue of Syariah Bonds or as they are more commonly known, Sukuk. This it seems has caught the eye of Muslim investors (Dubai and United Arab Emirates) who are keen to make halal investments and this provides an opportunity for that.

The Jakarta Monorail project has been a fiasco from the start. It is scheduled for completion in 2010 but that just is not going to happen! But it might just get finished if investors can be found. However, it is worth noting, as Dilli has done on his blog (picture also stolen / borrowed from Dilli's Blog), that if investors are going to come on board then they need to do so fast as some of the pylons that are supposed to support the monorail have started to mysteriously disappear.

I have to say I am not sure how you make a huge pylon disappear but it is probably a good David Copperfield or David Blaine or Cris Angel illusion!

The monorail was part of the comprehensive Jakarta traffic management plan. But the fact that the monorail has been plagued with problems from the outset brings into question the seriousness of the government and the comprehensiveness of their plan.

Anyone who has tried to travel around town using public transport soon comes to understand why people prefer private cars! If you add into this mix a little bit of rain then it just becomes traffic chaos. Will the monorail alleviate some of this chaos, who knows, but it is up in the air (literally and figuratively) so perhaps it cannot do any more harm!

Yet, the reality is, even with potential Arab investors wanting to come on board, it remains unclear as to whether the Central or Jakartan Governments want to back the monorail financially as the difficulties so far would be indicative of some serious risk management concerns.


atrix said...

Yeah, these ITC monorail project has been reckless from the beginning, even the backup has never been sufficient to have everything settle as planned. Let's how they gonna settle those scattered steel in Senayan area A.S.A.P .. hoho

GJ said...

Surely they jest!! Comprehensive transport plan..............................................................................sorry been rolling on the floor with laughter, but we should be shedding a tear. I remember last year some government BOZO announcing a new water taxi service to help traffic congestion, yes a total of 50 extra seats. It had to stop soon after as the canal needed drugding!! Wonderful planning.

Rob Baiton said...

To plan is one thing to implement though is quite another!