#1Indonesia's Urban Mass Transit Development Program Ikhwan Hakim - Director for Transportation National Development Planning Agency (Bappenas), Indonesia Berlin, September 12, 2023 BAPPENAS Kementerian Perencanaan Pembangunan Nasional/ Badan Perencanaan Pembangunan Nasional INDONESIA EMAS 2045 ASEAN INDONESIA 2023 O || CHANGING TRANSPORT gi Transport and Climate Change Week #TransportWeek23 Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Supported by: Federal Ministry for Economic Affairs and Climate Action IKIO INTERNATIONAL CLIMATE INITIATIVE on the basis of a decision by the German Bundestag#2BAPPENAS Kementerian Perencanaan Pembanguna Bacan Perencanaan Pembangunan Nasional ASEAN INDONESIA 2023 Portrait of Urban Transportation Issues In Indonesia ☐ Efforts to build urban public transportation have been carried out in several main cities in Indonesia BRT Jakarta has been built since 2004 (currently the BRT with the longest network in the world with a length of 251 km); MRT Jakarta has been operating since 2019 with a length of 16 km. BRT system has also been developed in some metropolitan areas (Bandung, Bali, Medan, Yogyakarta, Makassar, Banjarmasin, Palembang) mostly limited to within the core cities. However, motorization has occurred so massively that had an impact on the low share of public transport users in Indonesian cities (<20%) The number of private vehicles in Indonesia has been increased rapidly (130,8 million units in 2020). → average growth rate of 8% per year in the past 5 years Amount (miilion) BRT Transjakarta chokipness CHANGING TRANSPORT giz Supported Bry Fadil M fun Earowne: "h IKI and Citati bifadesin by the German Bunde These issues have an impact on traffic congestion → externalities: economic and environmental losses as INTERNATIONAL CLIVATE INITIATIVE Taipei Dhaka New Delhi- Hanoi Hong Kong Mumbal Yangoon Viantiane Manila Cebu Bengalore Phuket Growth rate of private motorized vehicles in Indonesia 12 115 mill. 112 mill. 106 mill. 10 100 mill. 94 mill. 6 2 13,1 mill. 13,9 mill. 14,8 mill. 15,6 mill. 15,8 mill. 0 2016 2017 2018 2019 four wheel vehicle two wheel vehicle 2020 Bangkok Phnom Panh Hồ Chí Minh Bd. Sri Begawan Kuching Kuala Lumpur Singapore JAKARTA SURABAYA BANDUNG Jakarta, Surabaya, Bandung are among the congested cities in Asia. Sumber: Bank Dunia, 2015 The GHG emission from the transport sector made up 26% (the second largest, 91% was from the road transport) Due to congestion, a 1% increase in urbanization in Indonesia only resulted in an increase of 1.4% of GDP per capita, below China and countries in East Asia and Pacific INCREASE OF GDP PER CAPITA (%) BY 1% URBANIZATION GROWTH 3,0 2,7 1.4 China countries in East Asia and Pacific Indonesia 2#3BAPPENAS Kementerian Perencanaan Pembanguna Becan Perencanaan Pembangunan Nasional ASEAN INDONESIA 2023 Strategic Issues/Challenges in the Development of Public Transport Lack of: Institutional Capacity, Integrated Mobility Plans, and Local Fiscal Capacity The development of urban mass transportation in Indonesia is still limited to the administrative area of the city (not yet covering the metropolitan/area around the core city), while demand comes from outside the city (i.e: MRT and BRT Jakarta) caused by Lack of effective institution in metropolitan areas that is able to integrate the development and management of cross-border administration and intermodal transport in a metropolitan area Metropolitan Jakarta (Jabodetabek) MRT Jakarta Case: In terms of funding, MRT Jakarta North-South line has been successfully built with a co- financing scheme between the central government and DKI Jakarta Government (on lending 51% and on granting 41%) × However, the implementation is limited within the Jakarta city (not the metropolitan area) due to institutional constraints Balaraja The scope of the MRT development plan covers Jabodetabek according to the analysis of mobility/ movements demand (SITRAMP and JUTPI Study) Kalideres East-West Line Kp. Bandan Ujung i Menteng North-South Line Lebak Bulus Cikarang DKI Jakarta Bodetabek CHANGING TRANSPORT giz Supported Bry Fal M fun Earowne: "h and Citati baia of a desi by the German Bundes IKI INTERNATIONAL CLIVATE INITIATIVE Responsibility for addressing urban transport in Indonesian cities has been decentralized. However, local govt cannot build public transportation EEEE caused by Regional Fiscal Capacity issues to build urban mass transportation. If only relying on the regional budget, apart from DKI Jakarta, there are no cities able to build MRT and LRT Case: cities within metropolitan Jakarta have very low capacity compared to the city of Jakarta Fiscal Capacity* (USD million) 2.200 Comparison of Regional Fiscal Capability and Investment Value (Capex) of Mass Transport in Cities in Indonesia 329 238 195 Capex MRT 1) Public Transport Capex DKI Jakarta Surabaya Bandung 190 167 158 Capex LRT 2) Bekasi Medan Tangerang *) Fiscal Capacity in terms of regional borrowing capacity 1) Capex MRT: USD 1 Billion/10 km; 2) Capex LRT: USD 460 Million/20 km; 3) Capex BRT: USD 140 Million/30 km 3 131 Semarang 1-129--116 Capex BRT3) Tangsel 90 Makassar Depok Bogor#4BAPPENAS Kementerian Perencanaan Pembangunan Nasional Becan Perencanaan Pembangunan Nasional ASEAN INDONESIA 2023 Urban Mass Transit Program CHANGING SPORT giz Supported Bry Fal My fn Eare: Arth and Cintia baia of a desi by the German Bund IKIO INTERNATIONAL CLIVATE INITIATIVE Bappenas initiated a mass transit program consisting of aspects of institutional development and funding integration Metropolitan Transport Institution Development Establishing metropolitan transportation institutions to ensure the integration of Urban mobility policy & Management and operation of public transport The institutional form based on best practice is a corporation (can be in the form of a State-Owned Enterprises / SOE-ROE Holding) Manage transportation funding (sourced from operating income, business development, equity contributions from each local government, etc.) Metropolitan Transport Authority Model -Central Government - Provincial/City/Regency Government Represent Board Integration of Funding Sources for Urban Mass Transport Development Formulate a funding scheme for the implementation of mass public transport • Ensuring the role of local governments in financing the construction and operation of public transport Optimizing investment of Business Entities Regulate the portion of Central Government support Integration of funding sources Provincial and City/Regency Budget Alternative Regional Loans through Municipal Bond Issuance (requires legal umbrella), asset and capital investment • Loan Central Government support through Grants or hybrid financing (combination): a. Upfront Cash through Grants b. AP support from the relevant Ministries for the Capex portion of central government CVGF . Business Entity Sustainable Urban Mobility Plan Shifting the planning approach from a conventional Master Plan (based on administrative areas, focusing on increasing traffic flow/capacity) to Sustainable Urban Mobility Plan (based on urban functional areas and focusing on accessibility of urban activity centers) Fund Sharing Local Government Responsibilities Metropolitan Transport Institutional/Authorities Operating Contract Revenue Central Government Support Bus Operator Rail Operator MRT LRT Feeder Part of Capex* All Opex Land Part of Capex** Provide additional technical support *) Minimum 15% Total Capex **) Maximum 85% Total Capex 4#5BAPPENAS ASEAN Kementerian Perencanaan Pembanguna Becan Perencanaan Pembangunan Nasional INDONESIA 2023 Urban Mass Transit Program ...Pilot Projects... CHANGING Supported by: Fal M fn Eare: Arth and Citati TRANSPORT giz baia of a deckin by the German Bu IKIO Examples of urban mass transit pilot projects: Construction of MRT Jakarta Metropolitan East-West Line, BRT Medan Metropolitan, and BRT Bandung Metropolitan Scope, Institutional, and Funding MRT Jakarta Metropolitan East-West Line : MRT line (84 km) connects Jakarta CBD and residential clusters along corridors in Banten and West Java Province ⚫Holding State Owned Enterprise and local government Owned Enterprises in the Jakarta Metropolitan Area (Jakarta, West Java, and Banten Provinces) Fase 1 with on-lending and on-granting scheme with Jakarta, West Java, and Banten Provinces INTERNATIONAL CLIVATE INITIATIVE Development Scheme of the Bandung and Medan Metropolitan BRT Local Representatives Council Regional Representatives Council agreement Regional Government cooperation (Province) Management mandate Implementing agency (integrator) Local Government (City/Regency) Department of Transport Equity capital/participation Equity capital/participation Financial institutions loan . BRT Bandung and Medan Metropolitan BRT Bandung Metropolitan: 21.7 km dedicated line and 20 direct service routes mainly serving access from residential areas outside Bandung (Cimahi, Bandung and Sumedang regencies) to commercial areas in Bandung city center • BRT Medan Metropolitan: 21 km dedicated line and 17 direct service routes mainly serving access from residential areas outside Medan (Binjai dan Deli Serdang regencies) to CBD areas in Medan city center ⚫Holding of Provincial and Local Government Owned Enterprises to manage and operate public transport infrastructure and services in metropolitan area - Province of Bandung currently has a Bandung Metropolitan management institution which will be part of the steering council •The central government supports capex and the local governments provide rolling stocks, opex and land acquisition Equity capital/participation, operational subsidy service tariff Transport Regional Owned Enterprise Operation contract Bus investment Operator Bus Industry Non farebox bussiness service provision O&M cost (self-managed) BRT Route Sustainable Urban Mobility Plan (SUMP) SUMP in Jakarta, Medan, Bandung Metropolitan is focused on developing integrated mass public transportation to serve priority corridors (incl. itegrating network with residential areas, workplaces and activity centers) based on the demand/movement across metropolitan area administrations SUMP and FS in metropolitan Jakarta, Bandung, and Medan were formulated through collaboration with development partners. i.e: SUMP Bandung Metropolitan by World Bank, FS by GIZ and SECO (through Sutrinama-Indobus) *FS by GIZ and SECO also conducted in Semarang, Surabaya, and Makassar Payment Integrator service tariff Bus investment O&M cost (Gross-cost contract) BRT Route BRT Route BRT Route Feeder Route Feeder Route 5#6BAPPENAS Kementerian Perencanaan Pembanguna Becan Perencanaan Pembangunan Nasional ASEAN INDONESIA 2023 Way Forward CHANGING HANNSPORT giz Supported Bry Fal M fun Earowne: "h IKI and Citati INTERNATIONAL CLIVATE INITIATIVE baia of a desi by the German Bunde ☐ The implementation of the Bandung and Medan Metropolitan BRT will be electricity-based and is targeted to start operating in the end of 2024 (gradually until full operation in 2027) & the development of the MRT Jakarta Metropolitan East - West Line (currently is in the construction preparation stage) will be operational in 2030. Institutional set-up and fund sharing scheme are currently being implemented for each metropolitan area/project. Mass transit system development (and provision of funding supports) will be continued for other priority metropolitan areas (Semarang, Surabaya, Makassar, Denpasar) through a collaborative approach with development partners. In the medium-long term development plan, the program will be implemented in next large and medium cities. ☐ Regulatory framework to strengthen policy and strategy (including institutional and financial arrangement) on urban mass transit development Koridor BRT Medan: Stasiun BRT Koridor BRT 1 Arah 0 Koridor BRT 2 Arah N 2 km 12 Station 12 Padjaja an Elang St Hal Cocaneum Antapani Cikudagalewto BEC Alunza un Kalapa Louvipanjang Cibaduya1 Sibitu Koridor Khusus BRT LEGEND Bandung#7THANK YOU#8Fuẞnote Code 5367 2714 Which urban transport financing schemes are the most significant in your country? 8