Jakarta’s MRT project bound up in legal strife

Indonesia 29 Sep 2014
Jakarta’s MRT project bound up in legal strife

Legal proceedings faced by Japan’s Shimizu, Corportation which have been brought against it by one of its previous joint venture partners, Dextam Contractors will have a severe impact on the construction of Jakarta’s mass rapid transportatin rail line, according to the Jakarta Globe.

A lawyer for Shimizu, Todung Mulya Lubis has stated that the dispute between Shimizu and its former joint venture partner Dextram was an internal matter that took place between the companies’ stakeholders.  Dextram was deliberately holding the MRT project hostage to the dispute by trying to remove Shimizu from its main role in building the MRT transport system.

Todung told reports that:

“MRT construction is a national project that concerns the public interest. This is a very important project we’ve been waiting for. We absolutely don’t want any issues to hamper [its construction]. The construction must be continued no matter how,”.

“The only way to solve traffic congestion in Jakarta is to ensure that the construction of the MRT succeeds. We do have the TransJakarta [bus network], but it isn’t enough, and the monorail has long been an unclear project,” Todung stated.

Dextram requested in 2013 to a Jakarta court that Shimizu leave the consortium awarded project.  In early September, the court issued an intermediate decision that rejected Shimizu’s motions to have Dextam’s request thrown out. Shimizu was then left with the option of an appeal, which they decided to attempt. The appeal is currently under way, and a verdict is expected in the near future.

“We lamented the [earlier] decision but we respect whatever decision the court makes,” Todung said.

“We are optimistic that the judges will prioritize the public interest. We believe in their integrity and credibility to make decisions based on what matters the most for the public interest in this respect.”

Shimizu and its legal team had secondary plans to anticipate the possibility of losing in court, Todung reiterated his confidence that that would not happen.


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