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: Poor planning and graft pose threat to new Jakartabusway

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  • eric.britton@ecoplan.org
    ... From: sustran-discuss-bounces+eric.britton=ecoplan.org@list.jca.apc.org On Behalf Of John Ernst Sent: Wednesday, July 14, 2004 10:26 PM To: Asia and the
    Message 1 of 1 , Jul 14, 2004
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      -----Original Message-----
      From: sustran-discuss-bounces+eric.britton=ecoplan.org@...
      On Behalf Of John Ernst
      Sent: Wednesday, July 14, 2004 10:26 PM
      To: Asia and the Pacific sustainable transport


      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
      Subscribe to ITDP's Sustainable Transport e-update at www.itdp.org
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