RAILWAY DEVELOPMENT IN INDONESIA

PRESENTED BY:

TAUFIK HIDAYAT & HARRY ARJADI

RESEARCHER, INDONESIAN INSTITUTE OF SCIENCES

Outline

Background and the History of Indonesian Railways

At the earlier, Indonesian Railways was built to support horticultural and agricultural commodities export and for militery expansion of colonial, which was dominated at Java Since 1999 and refer to Law 23/2007, the single operator of Indonesian railways was PT. KA (Persero) that covered passanger, cargo, private company service, etc.

Present Condition of Indonesian Railways

y As company PT Kereta Api (PT KA) who running

railway transportation in Indonesia has vision and mission, they are:

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Vision: to be the best providers of railway service that focus on service to the customer and meet the expectations of stakeholders Mission: Organizing the railway business and its support, through good practice and good organizational model for providing high added value for our stakeholders and ensuring environmental sustainability through four main pillars i.e. safety, right time, services and pleasantness

Present Condition of Indonesian Railways

Present Indonesian Railway serve four region

operation;
1. 2. 3. 4.

Java, South Sumatera, West Sumatera, and North Sumatera,

Consisting more then 4,500 km track Plus Local

commuter about 400 km. Several performance analysis about Indonesian Railways is showed at the next pages.

Present Condition of Indonesian Railways

The map indicates most of the major cities are already interconected in Java. The main requirements in Java would related to : Upgrading existing lines, Building access lines to key facilities, expanding urban services

Present Condition of Indonesian Railways

Sumatras railway system is quite different from the rail network on Java, divided into three widely separated system that fail (i) to meet the needs of intercity passenger and freight transport and (ii) do not adequately serve newly emerging development in the coal and plantation sectors

Present Condition of Indonesian Railways

y Trend of Passenger Transportation Volume (2004 2008)
300.00 250.00 200.00 n o i l l i M 150.00 r e g n e s 100.00 s a P 50.00 0.00 AnnualProgram Realization

2004 163.14 149.79

2005 157.86 169.56 151.49

2006 154.09 154.09 159.30

2007 164.00 164.00 175.50

2008 177.60 177.60 197.77 AnnualProgram LongTermPlanning Realization

LongTermPlanning 242.75

Present Condition of Indonesian Railways

y Trend of Transportation Services Selling Volume (2004 2008)
25.00 20.00 m k r e g n e s s a P 15.00 10.00 5.00 0.00 AnnualProgram LongTermPlanning Realization

2004 16.09 23.75 14.28

2005 14.91 14.91 14.18

2006 14.84 14.84 14.96

2007 15.95 15.95 15.90

2008 16.50 16.50 18.51 AnnualProgram LongTermPlanning Realization

Present Condition of Indonesian Railways

y Trend of Passenger Transportation Services Income (2004 2008)
2 .5 0 0

2 .0 0 0

) . p R n o i l l i B ( e m o c n I

1 .5 0 0

1 .0 0 0

0 .5 0 0

0 .0 0 0 A n n u al P r o gr am L o n g Te r m P lan n in g R e alizatio n

2004 1 .5 2 6 1 .7 8 6 1 .4 4 6

2005 1 .5 3 0 1 .5 3 0 1 .5 8 7

2006 1 .7 2 1 1 .7 2 1 1 .6 8 5

2007 1 .7 7 3 1 .7 7 3 1 .7 5 3

2008 1 .8 1 3 1 .8 1 3 2 .2 0 1 A n n u al P r o g r am L o n g Te r m P lan n in g R e alizatio n

Present Condition of Indonesian Railways

y Trend of Goods Transportation Services Volume (2004 2008)
3 0 .0 0

2 5 .0 0

2 0 .0 0 ) n o i l l i M ( n o T

1 5 .0 0

1 0 .0 0

5 .0 0

0 .0 0 A nnual Program L ong Te rm Planning Re alization

2004 2 1 .5 1 2 7 .2 2 1 7 .4 6

2005 2 0 .2 3 1 9 .7 7 1 7 .3 3

2006 1 8 .6 1 1 8 .6 1 1 7 .2 0

2007 1 8 .2 0 1 8 .2 0 1 7 .2 0

2008 2 0 .3 0 2 0 .3 0 1 9 .5 5 A nnual Program L ong Te rm Planning Re alization

Present Condition of Indonesian Railways

y Trend of Goods Transportation Services Selling Volume (2004 2008)
8.00 7.00 6.00 m k ) n o i l l i M ( n o T 5.00 4.00 3.00 2.00 1.00 0.00 AnnualProgram LongTermPlanning Realization 2004 5.15 7.48 4.60 2005 5.31 5.14 4.39 2006 4.86 4.86 4.42 2007 4.80 4.80 4.40 2008 5.20 5.20 5.45 AnnualProgram LongTermPlanning Realization

Present Condition of Indonesian Railways

y Trend of goods transportation services income (2004 2008)
1,600 1,400 1,200 ) . 1,000 p R n 800 o i l l i 600 B ( e m 400 o c n I 200 0 AnnualProgram LongTermPlanning Realization 2004 601 662 564 2005 676 607 704 2006 1,067 1,067 1,117 2007 1,173 1,173 1,091 2008 1,398 1,398 1,423 AnnualProgram LongTermPlanning Realization

Present Condition of Indonesian Railways

y In otherwise, the realization of income generally

doesnt reach the annual and long term program (except in 2006) because several reason:
{ { { {

Waiting of passenger trains. Rate of turn wagon is high (average over 3 days). Canceling of freight trains. Technical problems by rolling stock and infrastructure.

Present Condition of Indonesian Railways

y Train Accident (2004 2008)
180 160 140 120 e g a t 100 n e c r 80 P 60 40 20 0 TechnicalFactor Staff'sNegligence Other Natural Factor Outsider 2004 127 7 3 5 32 2005 110 12 3 3 22 2006 52 5 31 7 22 2007 44 12 59 10 22 2008 36 10 40 3 16 TechnicalFactor Staff'sNegligence Other Natural Factor Outsider

Present Condition of Indonesian Railways

y Human resources, there are still some factors to

consider increasing the productivity of human resources in the future. The factors are:
The quality of human resources remains low, as with mental aspect, as well as formal education { Inappropriate human resources are placed for their competence, not rewards and punishments executed, unclear job descriptions, and have not applied, the job description is unclear, but the application of merit system (in terms of management)
{

Company's Long-Term Plan of PT KA Year 2009 - 2013

Strategic Challenge; Aspects of the operation Financial aspects Human resources and IT aspects Strategic Road Map; Consolidation Improve capabilities Innovation World Class

Company's Long-Term Plan of PT KA Year 2009 - 2013

y Strategic Challenges.
Passenger Operation Planning (GAPEKA) Punctuality Safety Service Finance Budgeting investment Asset Utilization Human Resource and Information Technology Competency Operation Profit And Net Profit

Operation

Freight

Company's Long-Term Plan of PT KA Year 2009 - 2013

y In order to company revenue should be able to cover all costs

of both, so strategic thinking is required as follows:

{

Transportation revenue growth should continue to increase, to compensate for the stagnation of the growth in passenger transport. In 2011 projected revenues exceed revenues from freight transport; Non-transportation revenue should be increased from only 0.1% to at least 5% of total operating revenues

y Then the solution that can be done is: { Identify passenger and goods transport mapping (occupancy rate, etc.), to increase the volume; { cost efficiency is very relevant to review costing system; { developing the potential of freight in the region outside Java (South Sumatera Regional Division); { Development of non-transport activities through property management, advertising, and utilities (cable, pipeline, telecommunications, etc.).

Company's Long-Term Plan of PT KA Year 2009 - 2013

y Strategic Road Map

Road Map for the Development of Corporate Human Resources

I. PerformanceIndicator Development Profitperstaff Staffsatisficationindex Staffcompetencyindex Amountofsectionheadlevel andupperstaffpersentasion 2009 InisiationRe structurisation Fase TBO TBO 40% 2011 OperasionalFase 2013 BussinessValue Improvement Fase TBO TBO >80%

a. b. c. d.

TBO TBO 60%

e. Structuralperfunctionalstaff rasiopersentasion II. MilestoneofHumanResource Development a.

90:10 Finalisasionand Standarisationof HumanResource development BussinessProcess

70:30 Final Implementation ofCompetency basedStaff Performance Assesment

60:40 HumanResource Effortin CorporateHolding Control

Revitalization Of The Railways Sector

Revitalization Of The Railways Sector

Rail network developement need in Kalimantan for urban / suburban services, and to freight the coal from the mining areas. The network may be constructed in the short term as special projects with private sector funding

Revitalization Of The Railways Sector

As well as Kalimantan, Sulawesi need also to develope rail network for urban / suburban services

Revitalization Of The Railways Sector

MRT system plan is signed to be build in Jakarta city area