The issues in the road transport sector fall into three broad
categories. First ,provision of the road network has been
madequate . Provincial and kabupaten roads are in poor condition . congestion is a significant problem , and access to rular communities is low. Many factors contribute to poor provision of the road network. Funding is inadequate and unpredictable, Which is exacerbated by the fact that expenses are misallocated. And the works that are allocated funds are generally expensive and of low quality. Second. Use of the road network is inefficient. Characterized by overloading, suboptimal use and a lack of traffie safety. Lastly , institutions and the legal framework. Especially with toll roads. Are weak.
Inadequate Provision Of The Road Network
A.Poor Condition of the network While central funding has been adequate for keeping the national /artenal network in sausfactory and sustainable condition. There is a backlog of preservation and upgrading needs on the provincial network and a very large backlog on the kabupaten network . ia the absence of budget and unplementation constraints . the 2000 SEPM analysis medicates that expenditures on road preservation should mercase sharpy down then level of circa Rp. 4,5 million to finance a massive program of betterment followed by a sharp decline in expenditures once the major part of the network is in a stable muntainable condition. The unconstrained 2001 budget in 2000 prices was estimated at circa Rp 21 million. With expenditures in subsequent yeats fallingto circa Rp 13 million in 2002 and to less than Rp 4 trillion in 2003. Over a ten-year periode. The analysis indicates an average budged of circa Rp 6 6,5 trillion. Efficiently allocated. Would be needed to bering the network to an optimal condition. The computed relationship between average road agency expenditures and road user costs for alternative budged constraints (10-year averages) is shown in Table 12. A further analysis of Table 12 is found in Road Annex 1. B. Capacity Expansion Needs in Highly Congested Areas
Managing the increase in traffic demand that results from
economic growth requires a systematic investman in expansion of network capacity and improvements in traffic management. Deferral of a susbstantial program of upgrading at the time of the financial crisis and the subsequent resumption of traffic growth have resulted in very pressing needs to expand the capacity of sections of the arterial road network. High congestion costs are being imposed on users of some heavily trafficked corridors. This applies particularly to Java , where it is estimated that at least 240 km of capacity expansion per year is ecconomucally justified through 2010 , which is 30% higher than similar estimates in 1997. All the major urban areas are subject severe traffic congestion and this is a growing problem for the smaller satellite towns. Urban traffic flowshave continued to increase rapidly, despite the financial crisis. Private motor vehicle use has grown particularly fats, following liberalization of motor vehicle import regulation. Atmospheric pollution is a serious problem in the large cities (in the 1990s Jakarta was ranked the third most polluted mega-city in the world)- and is an rapidly emerging concern for the next level of cities. Vehicle emissions are considered to contribute much to local levels of pollution and the use of leaded gasoline has been major concern. C.Low Access for Remote Communities Uncompetitive procurement results in high costs and poor performance of construction and maintenance works. A survey of preservation works on national and provincial roads carried out during the late 1990s recently relaved that 25% were performing significantly less well than designed and reching a critical condition at least 30% earlier than projected
Corruption, collusion and nepotism remain pervasive in the
construction industry and contribute substantially to the problem. Collusion between bidders and officials undermines competition, leading to the higher initial prices and losses estimated at 10-30%.
When this weakens supervision control ovr the quality of work,
the consequent under performance can increase losses to in the order of 40%. The impact is even more negative when poor supervision performance on the part of public authorities, particularly at the kabupaten level, also significantly diminishes the effectiveness of maintenance resulting in premature road deterioration, excessive vehicle operating costs and a greater need for costly rehabilitation.
Reform in the areas can give rise to substantial direct saving
together with even greater indirect benefits through reduced vehicle operating costs as a result of the improved condition network.
Inefficient use of the road network
a. Vehicle overloading The enforcement of vehicle loading and dimension regulations in Indonesia is very weak, with between 30 100 % of heavy vehicles overloaded such vehicle is overloading has been estimated to increase road preservation costs by between 20-60% . as long ago as 1981 government close all roadside weighbridges due to their being ineffective and functioning primarily as collection points for illegal levies. Most have since been else has changed. Visual observation confirm that the problem remains very serious and is possibly worsening. In sumatera trucks transport logs that overhang far beyond the permitted the limit. In java hungry boards are used to enable trucks to carry excessive volumes of sand ad aggregates. Similarly in Jakarta, ready-mix concrete trucks are fitted with drums that are much larger than the volume stated on the vehicle documents, many overload trucks enjoy military or police protection and indeed many are operated by military or police cooperatives. b. Sub-optimal utilization of existing road network capacity with budget constraints limiting the scope for road capacity expantion investments, it will be essential in the medium term to maximize utilization of existing capacity. At present,
serious congestion, which greatly increases road user costs,
is commonly caused by poor traffic engineering and traffic management, especially at intersections, by roadside activities such as markets that impede traffic flow, by slowmoving vehicles that are overload, under powered or unsafe, and by poor driver behavior. In some areas, problems are compounded by poor public transport route licensing practices that allow the operation of excessive numbers of small pick-ups and that require these to pass through badly located and managed terminals for the primary purpose of revenue generation. Some basic traffic management measures such as traffic lights and one way streets are applied in most urban areas. To date there have been rather limited attempts to introduce more sophisticated traffic management measures such as segregated traffic, tidal flow lanes and variable geometry at roundabouts. The very substantial needs for improved regulation and management of urban transport as well as for capital investment must be assessed in the complex contect of urban management planning. c.Poor road traffic safety Road traffic accidents cause around 25 deaths per day in Indonesia and give rise to substantial material costs. Road accidents impose an estimated cost of 1.5% of GDP. The number of reported fatalities has declined in recent years, falling from circa 11,800 in 1998 to 8.762 in 2002. The number of fatalities per 10.000 registered vehicles is relatively high at 4.5. poor public and driver education coupled with lax driver testing procedures for drivers of public transport and heavy goods vehicles, are important factors. They are compounded by weak enforcement of safety related traffic regulations, ineffectual instpection of motor vehicle condition, which is currently required only for commercial vehicles and poor road and intersection geometry and signing. In some instances, notably driver and vehicle testing, corruption recognized to be a significant underlying factor.
Information on the causes and consequences of the traffic
accidents is poor. In part because it has taken more than a decade to secure inter-agency agreement on the adoption of an improved traffic accident reporting and data processing system whose implementation is only now commencing on a pilot basis. Official statistics are believed to understate actucal number of fatalities . in part because deaths occurring more than 24 hours after an accident are often not included. Inadequate institutional and regulatory framework for toll roads The limited interest now being shown in the toll road sector by serious private investors is attributable to several factors aside from the overall investment climate. Prominent among them are concern regarding the concessions award process and the multiple rolcs assigned to jasa marga (which operated) as a toll road developer, an agent of development required by the government to construct roads that are not commercially viable, and as a counter party for concessions agreements with private developers or as a joint venture partner for such developers), the absence of an agreed mechanism for adjusting tolls to reflect changes in cost not controllable by developers, the requirement for developers to be responsible for the costs of land acquisition in the absence of functioning eminent domain powers, slow progress in the resolution of existing concessions, and the absence of a soundly based and update toll road master plan on which to prepare meaningful feasibility studies. VII. ThE Way Forward Government has recognized and has been seeking to tackle the core problems impeding the efficient functioning of the road sector for more than two decades. While some initiatives have borne fruit, the pverall pace of progress has been disappointingly slow. The resultant costs- for the budget and for road usersamount to several trillions of rupiah per year. These are real costs that impact the performance of the economy and impede efforts to alleviate poverty. A fundamental
rethinking on the way in which the sector is managed and
regulated is clearly needed. Improve road network provision a. Expand and extend network managing the increase in traffic demand that results fom economic growth requires a systematic investment in expansion of network capacity and improvements in traffic and demand management. Programs of priority investment on the core section of the network should be identified , particularly those that may be suitable for private investment. A recent study for javas arterial road network indentified the growing congestion and concluded that : - By around 2007, all primary arterial and collector links of less than 7 meters width should be widened to 7 meters - By 2030, the entire arterial road network should be developed to a 4-lane standard. A preliminary screening process identified a program of economically warranted upgrading projects amounting to Rp. 106 trillion at 2000 prices over the period 20002030. Of this total , Rp.4,5 trillion is for widening to a 7meter 2-lane unseparated standard ( u7), Rp.34,6 trillion is for widening to 4-lane dual camageway standard on existing alignments (4D), and Rp.66,7 trillion is for construction of new 4-lane dual carriageway limited access roads (LAN). The criteria for including investment in the program was a first year economic rate of return of 20% or greater, which is estimated to equated to an EIRR of over 40% with the projected traffic growth rates. As shown in figure 4. The premilinary screening indicated that further investments in new 4lane dual carriageway inter-urban limited access road would not be justified prior to 2015. However, the studys subsequent more detailed analyses identified some promising candidates for toll road development prior to 2015.