JAKARTA: Indonesia’s capital inaugurated its first mass rapid transit system on Sunday, a $1.1 billion project seen as crucial to tackling some of the world’s worst traffic congestion.
President Joko Widodo and other officials joined a ceremony in Jakarta to give a green light for the 16-kilometer (10 mile) line, almost six years after construction began on the Japanese-backed project.
Tens of thousands of excited Jakartans were in attendance and eager to try riding on the subway for the first time, mobbing the president for selfies while music blared and traditional performers danced on a nearby stage.
“Honestly I am so happy,” office worker Mutia Fitrianti said. “Now we don’t have to go abroad just to ride an MRT.”
The train system runs above and below ground and stretches from the central Hotel Indonesia to the southern reaches of the Southeast Asian megalopolis of some 30 million people.
It aims to cut travel times between the two points to just 30 minutes from around two hours, offering some relief to frustrated commuters long used to spending much of their day stuck in traffic.
The new line is set to open to the public on Monday, with tickets free during the first week.
Construction on a second line linking downtown to Jakarta’s northern port is also kicking off Sunday with completion slated for 2024, and more lines are envisioned in the future.
A separate elevated rail network is also being built to link satellite cities with Jakarta, nicknamed the Big Durian after the pungent fruit that bitterly divides fans and its detractors.
The public transit projects are part of a sweeping infrastructure push that Widodo hopes will boost the fortunes of Southeast Asia’s biggest economy — and get him re-elected in national polls next month.
“If we have and integrated transportation system, it will be easier for people to go places and they will leave their cars or motorcycles at home,” Widodo told journalists on Sunday.
Over the past decade, rising incomes in the country of 260 million have created a ballooning middle class and sent vehicle ownership soaring.
But that’s also brought hazardous air pollution and annual economic losses that run into the billions as cars crawl along the capital’s roadways in the steamy tropical heat — alongside an underused bus system.
Environmentalists hope that the new line will cut traffic-linked carbon emissions by about half.
It could also make a dent in annual economic losses of some 65 trillion Rupiah ($4.6 billion) linked to road congestion, according to government figures.
The multi-billion dollar project is funded through a loan from the Japan International Cooperation Agency (JICA).
“We think MRT Jakarta is the project of the century for us,” JICA senior vice president Tanaka Yasushi told reporters.
But transport analysts have cautioned that the new line and cheap prices will not cure the traffic woes of a city infatuated with private vehicles and with few decent sidewalks.
“The MRT won’t immediately ease the traffic because changing the culture and attitudes isn’t easy,” Hendi Bowoputro, a public transit expert at the University of Brawijaya, said before the inauguration.
And the line’s expected 130,000 daily passengers represent only about 10 percent of those who already cram into a decades-old commuter rail network.
Traffic-choked Jakarta inaugurates mass rapid transit system
Traffic-choked Jakarta inaugurates mass rapid transit system
- Tens of thousands of excited Jakartans were in attendance and eager to try riding on the subway for the first time
- Environmentalists hope that the new line will cut traffic-linked carbon emissions by about half
Trump cuts India tariffs as Modi ‘agrees’ to stop buying Russian oil
- US will impose an 18 percent tariff on Indian goods, down from the earlier 50 percent punitive levy
- Withdrawal from Russian oil may affect India’s relations with BRICS, expert says
NEW DELHI: The US and India have announced reaching a trade agreement after months of friction, with President Donald Trump saying that Prime Minister Narendra Modi had “agreed” to halt purchases of Russian oil.
In August, Trump accused India, which imports most of its crude oil, of funding Moscow’s war in Ukraine and subjected it to a combined tariff rate of about 50 percent on most of the exports.
Following a call with Modi on Monday, Trump took to social media to say that he would cut with immediate effect US levies on Indian goods to 18 percent after Modi “agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela.”
At the same time, India, Trump wrote, would “reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO,” committing to buy “over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products.”
Modi confirmed the agreement on social media, saying: “Made in India products will now have a reduced tariff of 18 percent,” without commenting on Russian oil or duty-free imports of American goods.
When the US announced its punitive tariffs last year, India quickly moved forward with free trade negotiations with other countries — signing a deal with Oman and finalizing negotiations with New Zealand and the EU.
While the agreements were expected to partially offset the loss of exports to the US, economists did not expect they would immediately mitigate it, as shifting supply chains takes time.
The newly announced agreement with the US will therefore offer short-term relief for Indian exporters — especially of textiles, gems, jewelry and marine products — who were facing the threat of a market exit.
“In that case, the trade deal with the US is a welcome step. It provides short-term relief, allowing India to continue exporting to the US without being forced to exit the US market and diversify with a huge transition cost,” said Anisree Suresh, geoeconomics researcher at the Takshashila Institution.
“However, one shouldn’t look at it as a comprehensive long-term trade deal like the one India signed with the EU. The unpredictability of the Trump administration remains a major concern, regardless of whether there is a trade deal with the US ... India cannot treat this deal the same as other FTAs, as it is limited in scope and subject to reversal.”
When the US imposed its punitive tariffs on India, about 66 percent of total Indian exports were subject to that rate. Overall, India recorded a negative margin of 19.5 percent, meaning its exports were taxed more heavily than those of its competitors.
“From that point of view, Indian goods will have a larger market over there. However, there’s a problem when we talk about a 0 percent tariff on the US,” said Prof. Arun Kumar, a development economist.
“The US will be able to export a lot more to India, and therefore it will affect our production within the economy. And that will be a setback, so while exports may rise, the internal economy may actually suffer because of this decrease in tariffs on American goods. And especially if it affects agriculture.”
The sudden withdrawal from India’s partnership with Russia may not have a serious economic impact but politically could affect New Delhi’s relations, also with other countries, especially those from BRICS — a grouping that besides India and Russia includes also Brazil and China, and is the most powerful geopolitical forum outside of the Western world.
“You can always substitute Russian oil with some other oil, but I think it’s more of a strategic question, because India and Russia have had long-standing relationships, and if we bend to US pressure and reduce purchases from Russia, then it will affect in future also our relationship with Russia, because we will not be seen as a stable ally,” Kumar said.
“BRICS nations will not trust India very much in the future ... and that’s what Trump wants. He wants to disrupt BRICS. That’s what he has been doing right since the beginning to divide nations and deal with them individually.”
