REPUBLIKA.CO.ID, JAKARTA -- The Indonesian government is inviting the private sector to get involved in the development of light rail transit (LRT) system-based areas in and around Jakarta, Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said.

Based on the results of a study, the government will offer the development of LRT system-based areas or transit-oriented development (TOD) until Bogor some 45 kilometers south of Jakarta, he said here on Monday.

"So, at the meeting today we decided to conduct a study on the development of LRT system from Bogor to Cibubur (East Jakarta) all at once. By doing so, the cost will be lower," he said.

The results of a study conducted by PricewaterhouseCoopers, TOD show that the TOD will increase state revenues by up to 10 percent, he said.

"We have offered the TOD in Bogor-Cibubur section to the private sector," he said.

Earlier, Transportation Minister Budi Karya Sumadi said the government will offer the construction of LRT stations or TOD in and around Jakarta to the private sector.

The TOD concept means combining city planning with mass transport system.

"We think of how to involve more private companies in TOD and we will formulate a kind of ToR (terms of reference) to hold tenders involving the private sector," he said.

The minister said the government will call a tender for the construction of the project covering 50 hectares of land, he said.

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