[sustran] Re: Fwd: Poor planning and graft pose threat to new Jakarta busway

[John Ernst]

Hi Paul,

ITDP has been providing technical assistance to the City of Jakarta on the 
TransJakarta busway, so I can give a brief update.  There are some 
interesting points in the news article you sent (copied at the end of this 
message).

1) It's true the long-term future of the busway is threatened by what 
appear to be corrupt procedures.  In addition to equipment purchasing 
irregularities, to date the City of Jakarta has not established adequate 
control mechanisms on revenue.  They have installed a high-tech contactless 
farecard system which functions poorly and is not yet set up to provide any 
control on revenues.

By our estimates, the initial 13km corridor of the busway now operating is 
not likely to capture sufficient demand to cover costs on its 
own.  However, once the second/third corridor -- now beginning construction 
-- are operational, the system should be able to operate at a 
profit.  (This means covering all costs except for the initial 
infrastructure -- primarily stations, road improvements and lane 
separators.)  Note that we are now in the process of developing an improved 
public transport demand model for Jakarta, so all our estimates are 
preliminary.

Clearly, it is important to have a functioning mechanism to control ticket 
sales and revenue.  We are hopeful the current investigations underway in 
Jakarta will help to achieve this.

2)  Although the City of Jakarta has a master plan which includes 14 busway 
corridors, 2 monorail lines and 1 subway line;  these 3 public transport 
projects are not comparable.

To the extent either the monorail or subway is built, ITDP is encouraging 
integration with the busway.  However, while the busway can be financially 
self-sustaining, there is practically no chance for the monorail or subway 
to be so.

The monorail has  officially started development with private 
financing.  We estimate the monorail might capture from 1-2000 
trips/direction/hour.   While there is the ticket price to consider, it 
would be reasonable to expect that a monorail would need 10 times that 
ridership to break-even.


3)   We have  found that the press is generally negative about the busway, 
regardless of the statistics.  (A fact which can be attributed to Governor 
Sutiyoso's negative reputation, especially with the press.)

A couple of statistics cited could be looked at much differently:

>State-owned Trans-Jakarta has recorded 18 billion rupiah in revenue since 
>the busway's launch, an amount it says is still dwarfed by monthly 
>operating costs exceeding 3 billion rupiah.

I cannot confirm the cost and revenue figures cited here.  (Keep in mind 
there is no control to verify revenue.)   However, since the busway only 
began collecting revenue in February 2004, the 18b figure would imply they 
have been collecting 3b rp/month, a number that does not exactly "dwarf" 
monthly costs "exceeding 3 billion..."   Note also that Transjakarta has 
only become sensitive to costs in recent months, and thus has now 
implemented some basic cost measures such as reducing the number of bus-km 
during off-peak.

>... a study by the Japanese International Cooperation Agency this year 
>showed that only 14 per cent of car owners have switched to using the busway.

I view the purpose of the busway as primarily to prevent further switching 
of trips from public to private transportation -- a situation that has been 
occurring in Jakarta and most Asian cities for decades.  Hence, the busway 
fare needs to be priced so as capture existing public transport passengers 
-- which it now is.

That the JICA survey shows 14% of riders used to take a private car for the 
same trip seems great to me!  (Incidentally, the JICA survey also shows a 
roughly 6 percent switch from motorcycles.)

Without TDM measures of some kind, it's unlikely that someone who owns a 
private vehicle would switch to public transit.  Jakarta does have a HOV 
measure in effect for the corridor (3 passengers per car are required 
during peak hours, although hiring riders for 1000 rp each (USD 0.12) is 
still fairly easy).  The effectiveness of this "3-in-1" measure has not 
been fully evaluated.

I would like to know:  does anyone have comparison figures of the previous 
mode used by travelers on new public transit systems in other cities?

John Ernst
Asia Regional Director
ITDP


At 09:33 PM 7/13/2004, Barter, Paul wrote:

>Any comments from those closer to the action in Jakarta?
>Paul
>-------------
>
><http://straitstimes.asia1.com.sg/asia/story/0,4386,261373,00.html>http://straitstimes.asia1.com.sg/asia/story/0,4386,261373,00.html? 
>
>Straits Times
>JULY 14, 2004
>Poor planning and graft pose threat to new Jakarta busway
>Lack of supporting facilities makes it unattractive to car owners while 
>management's integrity is in doubt
>
>By Devi Asmarani
>
>JAKARTA - In operation for just six months, Jakarta's public bus system 
>has already proven to be the most reliable and comfortable means of 
>getting around the congested capital.
>
>But its sustainability is in question: most commuters are still unwilling 
>to leave their cars at home and the busway's management is allegedly 
>fraught with graft.
>
>Observers are worried that - like other ambitious, multi-million-dollar 
>government projects in the capital - the system will eventually wither 
>from mismanagement and a lack of funds.
>
>The busway system is one of several controversial policies that Jakarta 
>Governor Sutiyoso has implemented. Others include the eviction of illegal 
>squatters from slums.
>
>Analysts say these policies - seen as insensitive to public opinion - have 
>hurt President Megawati Sukarnoputri's popularity in Jakarta. Her PDI-P 
>party was behind the Governor's re-election two years ago.
>
>The 250-billion-rupiah (S$48.5-million) Trans-Jakarta Busway system is the 
>first phase of a seven-year project to build a mass transportation system 
>that includes a monorail and subway.
>
>Fifty-six specially built buses, each with a capacity of 85 passengers, 
>ply the 12.9km route that runs from the bus terminal in the popular Blok M 
>shopping complex to the bustling Chinatown area.
>
>The buses travel along dedicated bus lanes, which reduces travel times. 
>Around 51,000 people use them daily.
>
>The system was especially helpful during the campaigning leading up to 
>April's legislative election, when up to 65,000 people a day used it to 
>avoid the massive jams caused by street parades.
>
>However, a study by the Japanese International Cooperation Agency this 
>year showed that only 14 per cent of car owners have switched to using the 
>busway.
>
>State-owned Trans-Jakarta has recorded 18 billion rupiah in revenue since 
>the busway's launch, an amount it says is still dwarfed by monthly 
>operating costs exceeding 3 billion rupiah.
>
>'With the current bus fare of 2,500 rupiah per trip, we are still heavily 
>subsidised by the city budget,' said company spokesman Ajar Aedi.
>
>'But the purpose is to provide a service that is affordable for everyone, 
>so we can't stress too much on the business side for now.'
>
>The Jakarta city administration is planning two more routes for the busway 
>system.
>
>But public policy analyst Agus Pambagio said the system was poorly managed 
>and prone to corruption.
>
>The cost of bus procurement and bus shelter construction may have been 
>falsely marked up, he said, and the ticketing system is also not 
>transparent enough, making it prone to irregularities.
>
>Most car owners are also reluctant to take the bus because of a lack of 
>good supporting facilities, said Mr Agus. Feeder buses serving routes not 
>covered by the Trans-Jakarta buses are in a decrepit state.
>
>The city's pavements are also in need of repair and there are no parking 
>facilities for car owners who want to take the bus.
>
>'To encourage people to take the bus, the government must do more than 
>just buy buses,' said Mr Agus.
>
>'There must be supporting facilities as well as integrated traffic and car 
>ownership policies. Right now, there is no long-term initiative other than 
>to finish the projects.'
>
>-------------------------------------------------------------------------------- 
>
>Copyright @ 2004 Singapore Press Holdings. All rights reserved.
>
>Forwarded for the purpose of education and research

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John Ernst   -  Director, Asia Region
    ITDP - The Institute for Transport and Development Policy
    Direct Fax +1 (801) 365-5914
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