Highlighted Projects >
| Contact Us |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
Multi Modal Transport Planning Experience
Transport Sector Strategy Study for Indonesia
Asian Development Bank (Funding Agency)
BAPPENAS & DGLT (Executing Agency)
BAPPENAS & DGLT (Executing Agency)
Multi Modal Transport Planning & Strategy
The study is primarily focussed on the regional multi-modal transport system
for Indonesia. The many background and sub-sector studies that comprise
TSSS have confirmed the dynamic, interactive nature of transport, and its
relationship to social, economic and regional development, competitive
markets, land use planning and the environment. The work has benefited
from a wide range of inputs and guidance from the Government of Indonesia
(GOI) Steering Committee, Technical Team and Working Groups
comprising representatives of the Ministry of Communications (MOC),
BAPPENAS the National Development Planning Agency and other relevant
Departments and Agencies.
TSSS was initially designed to assist GOI, i.e. MOC, in preparing a strategic
transport policy framework for Repelita VII (1999-2004), including the
identification of strategic programs and projects that fit within that strategic
policy framework. The basic assumption was that the economy would
continue to grow at a rate of more than 7.0 percent per annum and that there
would be no significant changes in the way the public sector was being
managed. But due to the financial and economic crisis that befell the region
during 1997-1998 and its subsequent political changes, Repelita VII was
never implemented and TSSS needed to be reoriented towards new policy
frameworks based on the new economic platform and other new socio-
political settings.
The transport sector was particularly badly damaged by the downturn. Due
mainly to deferred maintenance and rehabilitation resulting from a drastic
budget cut, more than 50 percent of about 290,000 kilometers of national,
provincial, and district road networks is reported as having deteriorated into
unstable conditions, reducing travel speeds significantly, and resulting in
economic losses to users. Air transport lost 40 percent of the fleet and many
domestic and international routes have been eliminated: air passengers also
declined consistently due to low purchasing power. The spiralling rise of US
dollar value to rupiah increased the price of spare-parts of buses,
automobiles, and other transport fleets by more than three times. City bus
and inter-city bus services had been declining steadily and in order to stay in
service, spare-parts have had to be cannibalised and/or fleet maintenance
deferred, thus endangering safety.
It became apparent that infrastructure projects would have to be either
postponed or reviewed. A Presidential Decree (Kepres) was issued in
September 1997 in which 81 projects were postponed and 62 others were
reviewed. These included government and state-owned enterprise (BUMN)
projects and projects owned and built by private sector but with a close link
to the government, and projects funded by foreign loans and export credits.
Most were power generation, transport infrastructure, and toll road projects.
Against this background of significant economic, financial and political
change a number of major and inter-related transport issues can be identified :
for Indonesia. The many background and sub-sector studies that comprise
TSSS have confirmed the dynamic, interactive nature of transport, and its
relationship to social, economic and regional development, competitive
markets, land use planning and the environment. The work has benefited
from a wide range of inputs and guidance from the Government of Indonesia
(GOI) Steering Committee, Technical Team and Working Groups
comprising representatives of the Ministry of Communications (MOC),
BAPPENAS the National Development Planning Agency and other relevant
Departments and Agencies.
TSSS was initially designed to assist GOI, i.e. MOC, in preparing a strategic
transport policy framework for Repelita VII (1999-2004), including the
identification of strategic programs and projects that fit within that strategic
policy framework. The basic assumption was that the economy would
continue to grow at a rate of more than 7.0 percent per annum and that there
would be no significant changes in the way the public sector was being
managed. But due to the financial and economic crisis that befell the region
during 1997-1998 and its subsequent political changes, Repelita VII was
never implemented and TSSS needed to be reoriented towards new policy
frameworks based on the new economic platform and other new socio-
political settings.
The transport sector was particularly badly damaged by the downturn. Due
mainly to deferred maintenance and rehabilitation resulting from a drastic
budget cut, more than 50 percent of about 290,000 kilometers of national,
provincial, and district road networks is reported as having deteriorated into
unstable conditions, reducing travel speeds significantly, and resulting in
economic losses to users. Air transport lost 40 percent of the fleet and many
domestic and international routes have been eliminated: air passengers also
declined consistently due to low purchasing power. The spiralling rise of US
dollar value to rupiah increased the price of spare-parts of buses,
automobiles, and other transport fleets by more than three times. City bus
and inter-city bus services had been declining steadily and in order to stay in
service, spare-parts have had to be cannibalised and/or fleet maintenance
deferred, thus endangering safety.
It became apparent that infrastructure projects would have to be either
postponed or reviewed. A Presidential Decree (Kepres) was issued in
September 1997 in which 81 projects were postponed and 62 others were
reviewed. These included government and state-owned enterprise (BUMN)
projects and projects owned and built by private sector but with a close link
to the government, and projects funded by foreign loans and export credits.
Most were power generation, transport infrastructure, and toll road projects.
Against this background of significant economic, financial and political
change a number of major and inter-related transport issues can be identified :
- There is likely to be a shortage in public sector funding to cover all the
transport sector’s needs, especially in the short-term; - Although the private sector has been encouraged for some time to
participate in financing and operating transport infrastructure and
services, a number of complex and inter-related issues (financial,
economic and regulatory), are currently conspiring to frustrate
government’s aims and aspirations; - There is a lack of clarity at national and regional levels as to how
transport strategy should support and stimulate government’s
economic, social and development objectives; this has been partly
created by the continued separation of responsibilities for road
provision, traffic and transport planning and land use planning. - The impact of the implementation of decentralisation and regional
autonomy laws in early 2001 is likely, at least in the short term, to
further fragment transport planning responsibilities in the absence of a
cohesive national framework. - Pricing, cost recovery and productivity policies are often prepared in
isolation, rather than within an integrated framework, and in some
instances appear contrary to established practices elsewhere.Policies
on tariff levels for example, as between economy rail and bus are set
to favour rail, but little is known or made explicit about elasticities of
demand on which to base such decisions, nor on the wider socio-
economic benefits of such a strategy. - Many of the above problems and issues at the national level relate to
the transport planning data base which is neither comprehensive nor
consistent, and at times leads to ad-hoc planning and decision-making,
a lack of transparency and potential inefficiency in the allocation of
resources.
Location
Client
Firm
Services
Indonesia
PT. Pamintori Cipta
| CONSULTANCY SERVICES |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| NEWS & CAREERS |
 |
| |
 |
| HIGHLIGHTED PROJECTS |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
