MRT Jakarta Develops TOD Business with Alternative Financing Beyond Regional Budget

PT MRT Jakarta is pursuing innovative financing strategies to develop its Transit-Oriented Development (TOD) business, relying on a variety of funding schemes that operate independently of the regional budget (APBD). This approach contrasts with the construction and operation of the MRT itself, which continues to receive subsidies from the DKI Jakarta Provincial Government.

Sagita Devi, Head of TOD Planning Department at PT MRT Jakarta, explained that the development of TOD areas depends on several alternative financing mechanisms. These include contributions from exceeding the floor area ratio (KLB), direct investment, and business collaborations with private entities. "For the development of the TOD business and area at MRT, we indeed have to find funding outside the government's APBD, so there are several examples of financing schemes that have been implemented," Devi stated.

One significant funding source is the contribution derived from exceeding the floor area ratio. Under this scheme, landowners near stations who wish to increase building intensity beyond the basic regulations are required to make contributions to the government. These contributions are not in cash but are materialized through the development of public infrastructure outlined in the area's master plan. Several public facilities, such as the pedestrian arrangement on Jalan Blora-Kendal, access roads on Jalan Pati and Jalan Juana for Transjakarta services, the Taman Kudus arrangement, and the extended concourse at Bundaran HI Station (slated for June 2027), have been built using these contributions.

Furthermore, MRT Jakarta employs investment and business-to-business (B2B) cooperation schemes for its TOD projects. The Taman Literasi, for instance, was funded through MRT Jakarta's own investment, while the revitalization of the Lebak Bulus park-and-ride area involved a partnership with a parking operator. A similar mechanism was used for the Joint Pedestrian Bridge (JPM) Dukuh Atas, connecting Sudirman Station with LRT Dukuh Atas Station, developed by a joint venture subsidiary of MRT Jakarta through creative financing without APBD funds.

Additionally, MRT Jakarta is developing the Dukuh Atas Transport Hub project through a land lease scheme with Perumda Pasar Jaya. This project, with an investment value of approximately Rp 245 billion, generates around Rp 30 billion in annual revenue. The multi-functional building is designed with an open ground floor to facilitate seamless intermodal transfers for pedestrians. The presence of the Transport Hub is also expected to boost regional tax revenue.

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For the development of the TOD business and area at MRT, we indeed have to find funding outside the government's APBD, so there are several examples of financing schemes that have been implemented.