Transport and Climate Change Week: SUSTAINABLE URBAN TRANSPORT DEVELOPMENT IN

INDONESIA

Ikhwan Hakim Director of Transportation

Ministry of National Development Planning Indonesia

Presented at Transport and Climate Change Week Berlin, 18-20 September 2017

REPUBLIKINDONESIA

SustainabilityIssuesinUrbanDevelopment(1/2)

59% 64% 68% 72% 76%41% 36% 32% 28% 24%

0%

50%

100%

2015 2020 2025 2030 2035

UrbanPopula7on RuralPopula7on

HighUrbanisaFonRate

MassiveUrbanLandConversion

•  Rapidchangesoflowdensityareasintohighdensi7es.Agriculturallandandgreenareasturnedintoresiden7alareas.

•  InJakartaMetropolitanArea,within1985-2002,theresiden7allanduseincreasedfrom11%to22%(27mes)andindustriallanduseincreasedfrom4.75%to7.5%.While,agriculturallandusedecreasedfrom45%to24%.

RapidMotorizaFon

12,599,138

92,976,240

-

50,000,000

100,000,000

1954 1964 1974 1984 1994 2004 2014

PrivateCar Bus Truck Motorcycle

EnvironmentalImpacts•  Thetransportsectoraccountsfor27%ofCO2emissions.Indevelopingcountries,CO2emissionsfromtransporta7onwillincreasebytwo7mesintheperiod1980-2030.

•  InDKIJakarta(2008-2013)indicatorsofurbanairqualitysuchasPM10increasedby20%,COincreased70%,andNO2increasedby350%.

HighTrafficFatality

•  Trafficfatalityin2016wasalmost26.000.

•  In2016,72%oftrafficaccidentsinvolvemotorcycles.

In2015:Indonesia(2.69%),India(2.38%),China(2.3%)

REPUBLIKINDONESIA

SustainabilityIssuesinUrbanDevelopment(2/2)DeterioraFonofUrbanPublicTransport(currentshareisaround20%)

•  Economiclossesduetotrafficconges7oninJakartareachUSD3billionin2016.(Source:WorldBank)

•  In2020,mostnetworkinJakartaMetropolitanwillreachV/CRa7o>1.2•  Thecurrentra7oofroadsinJakartais6%anddecreasingwhichisnotpropor7onaltothenumberofprivatevehicles.

SevereTrafficCongesFon

UNRELIABLE PUBLIC TRANSPORT

LackofModernMassPublicTransportSystem•  Urbanpublictransportsystemhasreliedontradi7onalmini,medium,and

largebuses(withren7ngsystemandpoormanagementandopera7on)•  BRTwasintroducedin2004inJakartaandsomemajorci7es(notfullBRT).•  Among11largeci7es,15mediumci7esand52smallci7esinIndonesia,only5

ci7eshaveurbanrailwaysystem(developedincolonialera).JakartaMRTandPalembangLRTares7llunderconstruc7on.

29%3%

63%19%

29%12%

11%62%

23%37%

23%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

Singapore(2011)(2011)Tokyo(2009)

HongKong(2011)DKIJakarta(2010)

Rail Non-RailPublicTransport PrivateTransport Others

2%25%48%19%

URBAN GRIDLOCK V/CRa7o2020:>1.2

REPUBLIKINDONESIA

TowardsModernizedMassTransportSystemExis7ng CurrentEfforts ModernizedTransport

•  Individualownership•  Licensesystem•  Rentsystem•  Poormanagement:individuallymanaged.

•  Poorservice:no7metable,lowcapacity,nofixedrate,nosegregatedlaneandnodesignatedstop.

•  Lowridershipduetopoorservice->unreliablepublictransportmode.

•  Competeamongothers.

•  RailwayCommuterLine(JakartaMetropolitan)Ø  Currentlyupto1millionpassenger/day.Ø  Issue:networkdevelopedincolonialera,only1

sta7onservesCBD.•  BRTJakarta(2004)andsomemajorci7es

Ø  BRTJakartaheavilysubsidized,notalllanearesegregated,nonewlydevelopedlane(exceptcorridor13),currently400thousandpassenger/day.

Ø  Otherci7esaremostlysemi-BRT,notsegregated.

Ø  CentralGovernmentprovidebusfleettosomeci7estosupportBRTsystem.

Ø  Manyci7esarenotreadyintermsofins7tu7onandfinancialschemetosupportBRT.

•  MRTJakartaPhaseI(opera7onin2019):Ø  15.7km,with13sta7ons(6sta7onsservingthe

CBD).Ø  Projectinvestment:1.1billionUSDØ  FundingschemeofMRTJakarta:49%central

government,51%localgovernment(noprivatesectorfunding).

•  PalembangLRT(opera7onin2018):Ø  Projectinvestment:750millionUSDØ  100%centralgovernmentfunding

•  Proposalsfromotherci7esfor100%supportfromcentralgovernmenttodevelopLRT:Medan,Batam,Surabaya,Makassar,Bandung.

•  Noestablishedframeworkforcentralgovernmenttosupporturbanmasstransportsystemdevelopment(currentlyunequaltreatment.

REPUBLIKINDONESIA

5

Strategy: Institution Financing and Support Framework

NATIONALPROGRAMFORURBANTRANSPORTDEVELOPMENT

•  Economic(GDPcontribu7on,fiscalcapacity);•  Regionalregula7on(TransportandSpa7alPlan);•  CitySize(popula7on,density,geography);•  Shareofexis7ngpublicandprivatetransporta7on.

BESTPRACTICE(EXAMPLEMEXICO)

• PoolofFund(source:donor,grant,andloan);• Criteria:Cityform,technologymode,planning;• CentralGovernmentsupportnotincludeopera7ons;• Maximumfundsharingfromcentralgovernment,minimumsharingfrommunicipalgovernmentandprivatesector.

BeneficiaryCriteria

SelecFonofModeofTransportaFon

•  TechnologyandTypeofTransportMode•  IntegratedplanningwithExis7ngTransporta7onand

TransitOrientedDevelopmentFacility(TOD).

FundingandInsFtuFonalFramework•  Minimumfundingsharefromlocalgovernmentand

privatesector;•  Regionaltransporta7onins7tu7onalframework.

Source:WorldBank,2017

1 1

1 2

1 3

THANKYOU

ikhwan.hakim@gmail.com