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Indonesia Railway Reform

Indonesia Railway Reform. Suyono Dikun , PhD Professor in Transport Planning and Policy University of Indonesia at Depok. IndII Wrap-up Conference 14 th June 2011. N ational R ailway M aster P lan - 2030 Projections. Legal Path f ollowing Law n o. 23/2007. Future Railway System.

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Indonesia Railway Reform

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  1. Indonesia Railway Reform SuyonoDikun, PhD Professor in Transport Planning and Policy University of Indonesia at Depok IndII Wrap-up Conference 14thJune 2011

  2. NationalRailwayMaster Plan - 2030 Projections

  3. Legal Path following Law no. 23/2007 Future Railway System Current Railway System Revitalisation “De-Facto” Path staying at current vertical integration Can acompromise or an interim solution be worked out between the regulator and operator? Indonesian railway ata crossroads

  4. Legal Path Full compliance with Law no. 23/2007 No compromise: Regulator

  5. Stay at current vertical integration PT KAI will still operate the existing railway system under vertical integration but has more freedom to invest on both infrastructure and rolling stocks. No compromise: Incumbent Operator

  6. IndII has made a lot of policy recommendations on these studies IndII assistance

  7. Railway stakeholders (DGR, Bappenas, CMEA, MOF) have agreed on the urgent need to revise the current PSO-IMO-TAC scheme. • The new framework would make the existing scheme work better. • The new framework would enable multi operators and private special railways to become a reality in future railways. • IndII’s next involvement would probably include assistance with establishing new framework for the PSO-IMO-TAC scheme. Lessons learned: The good news

  8. Revitalisation and restructuring agenda for Jabodetabek Metropolitan Railway is yet to be confirmed by the government. • The agenda includes: the enhancement of PT KCJ to be an independent urban railway company; asset separation; network statement; and financial support. • The corresponding issue of raising ridership up to three million passengers per day in 2015 and beyond has been endorsed by the government. • DGR has to be strengthened institutionally to be able to make a rapid delivery. Lessons learned: Pending matters

  9. The NRMP has been formally issued as a long-term planning document but failed to incorporate many strategic issues that had been reported in two IndII’s papers. • The NRMP lacks a sound investment plan for the next one or two decades. • The NRMP has no mention on the investment strategy, financing, and the role of private involvement including PPP and PFI for special railways. • Even for government investment and public sector spending the NRMP has not described the future configuration of APBN funding. Lessons learned: The bad news

  10. IndII would probably embark on the second stage of infrastructure agenda beginning July or August 2011. • Despite the good news described above, it is strongly suggested that government takes a strong lead and ownership in any program of railway revitalisation ahead. • It is a developed and modern Indonesian railway that government would like to see in the years ahead as a backbone for economic mobility, especially freight movement. • Good enough is no longer enough. Indonesia needs a rapid change towards a developed economy. Proposals

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