World Bank Approves Indonesian Mass Transportation Project, Provides Funding of US$224

JAKARTADAILY.ID – The World Bank's Board of Executive Directors approved financing of US$224 million for the Indonesia Mass Transit (MASTRAN) Project on 20 May 2022.

The funds will be used to finance the Bus Rapid Transit (BRT) system in the metropolitan areas of Medan, North Sumatra, and Bandung, West Java.

“Nearly 60 percent of Indonesia's GDP comes from urban areas, making mobility in the region critical to economic competitiveness,” said Satu Kahkonen, World Bank Country Director for Indonesia and Timor-Leste, on a press release, Wednesday, June 1, 2022.

Kahkonen said, the project would strengthen collaboration between the central and local governments in Indonesia and enhance the technical expertise needed to plan and operate urban transportation systems.

"By improving the quality of public transportation, people will have choices other than motorbikes and cars while controlling pollution and congestion levels," he said.

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The metropolitan areas of Medan and Bandung were selected as pilot cities under this project based on their readiness and feasibility.

Greater Bandung is the third largest urban agglomeration in Indonesia and the City of Bandung is the second most populous of 38 cities in Indonesia, according to a recent World Bank study.

In North Sumatra Province, the Me Field area, which includes Medan, Binjai City, and Deli Serdang Regency, is the largest metropolitan area outside Java, and the fourth largest metropolitan area in Indonesia. In a World Bank study, this region is ranked as the third most densely populated city in Indonesia.

Separately, Indoensian Minister of Transportation Budi Karya Sumadi, said that through the implementation of the MASTRAN project, it is hoped that an environmentally friendly urban mass transportation system will be realized.

"This project will also be able to reduce the use of private vehicles to encourage community mobility and access to new possibilities in accordance with the objectives of the National Medium-Term Development Plan (RPJMN)," said Minister Budi at the National Public Transport Movement (GNKAU) event.

In addition to support from the World Bank, the project will receive funding from the Indonesian government, Agence française de development (AFD), and the private sector, bringing the total funding to US$364 million.