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The Current Transport Policy Environment (Law 23/2007: Objectives & Follow-up) Harun al-Rasyid LUBIS 15 December 2009
Legal and Regulatory Reform Past & Recent Law # 23/2007 Railway Policy Reforms  &  Objectives  Moving Forward Goals of Rail Sector Development Roles & Strategic Directions Follow-up Infrastructure Ownerships and Rolling Stocks Option of Railway Organization Model Railway Restructuring Variables Possible Institutional & Regulatory Development National RMP and Indonesia Railway Forum
Railway:  Legal & Regulatory Reform PAST Law # 13/1992  GR No. 69/1998 Rail Infrastructure and Rolling Stock GR No. 81/1998 Rail Traffic and Transport NEW Law # 23/2007 GR  56 /2009 Railway Operation and Management  Draft GR Rail Traffic and Transport
Law # 23 /2007 :  Policy Reform & Objectives Today  Future Expectation ( by Law)  Local Goverments Other      Corporations ,[object Object]
 Dominantly  PT KA  Monopoly
 Too centralistic planned and managed  Railwayoperations and managementshouldbeefficient and responsivetothemarket – competitiveservices HOW ? Article 214 ; Railway Audit  and  PT KA Betterment ( only 4 months left ) Opens  up Local Government involvement and private sector participationsa)  Institutional and implementing regulations need to be set upb)  Infrastructure ownership  and management need to be clearly defined , andc)  Separation of regulatory function and service providers If the market allow,  introduce competition and network access to new TOCs
The objectives of regulation are:  to regulate the establishment and provision of railway services in Indonesian; to promote and protect the interests of users of railway services; to promote competition in the provision of railway services; to encourage investment in railway infrastructure and rolling stock by the private sector where appropriate; and to promote efficiency and economy in the provision of railway services.
MOVING FORWARD -- Goals of Railway Sector Development National Railway Masterplan (NRMP) will guide the long term development of the sector Consolidated and good quality NRMP document is necessary Achievable targets of railmarket  share byregion /corridor / islandsneedtobespecified in NRMP
Rail Transport  Shares  Worldwide COUNTRY             Passenger          Freight Japan 			    29%                                      5% EU  & USA		     <  10%		10 – 30 % Indonesia		     6 – 7 %		  < 1 % Sumber : diolah dari berbagai sumber
Roles and Strategic Directions ,[object Object]
 Will push other sectors development, backward and forward, such as  job opportunities, property, industry, supported distribution and delivery services, etc...
Passenger Commuter Trains  and  Intercity Medium Distant  Roles of the railway sector in the national economy ,[object Object]
To be more competitive, rail services need to be improved,   also as complementary for other modes (land, sea and air transport) so as to form an efficient and seamless transport Roles in Logistic &  Distribution
FOLLOW-UP :Objects to be managed and regulated     Railway infrastructure: Rail track Stations Other train operating facilities (signal, telecommunication and electricity)  Rolling stock (trains): Locomotive Cars (for passengers) Wagons (for freight) Special facilities or rolling stock (for track maintenance-- MTT) Workshops, depots for R/S maintenance
Railway Organization Model Separated : Multi-Operator Integrated Model  (a & b) BUS  BUS   1 2 BUS n (c) TAC B U P & S (a) BUP TAC Notes: BUP & S = Infrastructure and train operating company (integrated) BUP = Infrastructure management company BUS = train operating company D A =  division of transport DP =   division of Infrastructure TAC = track access charge B U P & S BUS n (b) D  A n TAC D  P
Railway Restructuring: Variables that needs to be controlled COMPETITION STRUCTURE Integrated Dominant/Tenant/incremental Separated Public/Mixed/Privt Ownership Intermodal       or IN/FOR Market Tariffs Access Regime Entry/Licensing Safety Government Support REGULATION

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The Current Transport Policy Environment

  • 1. The Current Transport Policy Environment (Law 23/2007: Objectives & Follow-up) Harun al-Rasyid LUBIS 15 December 2009
  • 2. Legal and Regulatory Reform Past & Recent Law # 23/2007 Railway Policy Reforms & Objectives Moving Forward Goals of Rail Sector Development Roles & Strategic Directions Follow-up Infrastructure Ownerships and Rolling Stocks Option of Railway Organization Model Railway Restructuring Variables Possible Institutional & Regulatory Development National RMP and Indonesia Railway Forum
  • 3. Railway: Legal & Regulatory Reform PAST Law # 13/1992 GR No. 69/1998 Rail Infrastructure and Rolling Stock GR No. 81/1998 Rail Traffic and Transport NEW Law # 23/2007 GR 56 /2009 Railway Operation and Management Draft GR Rail Traffic and Transport
  • 4.
  • 5. Dominantly PT KA Monopoly
  • 6. Too centralistic planned and managed Railwayoperations and managementshouldbeefficient and responsivetothemarket – competitiveservices HOW ? Article 214 ; Railway Audit and PT KA Betterment ( only 4 months left ) Opens up Local Government involvement and private sector participationsa) Institutional and implementing regulations need to be set upb) Infrastructure ownership and management need to be clearly defined , andc) Separation of regulatory function and service providers If the market allow, introduce competition and network access to new TOCs
  • 7. The objectives of regulation are: to regulate the establishment and provision of railway services in Indonesian; to promote and protect the interests of users of railway services; to promote competition in the provision of railway services; to encourage investment in railway infrastructure and rolling stock by the private sector where appropriate; and to promote efficiency and economy in the provision of railway services.
  • 8. MOVING FORWARD -- Goals of Railway Sector Development National Railway Masterplan (NRMP) will guide the long term development of the sector Consolidated and good quality NRMP document is necessary Achievable targets of railmarket share byregion /corridor / islandsneedtobespecified in NRMP
  • 9. Rail Transport Shares Worldwide COUNTRY Passenger Freight Japan 29% 5% EU & USA < 10% 10 – 30 % Indonesia 6 – 7 % < 1 % Sumber : diolah dari berbagai sumber
  • 10.
  • 11. Will push other sectors development, backward and forward, such as job opportunities, property, industry, supported distribution and delivery services, etc...
  • 12.
  • 13. To be more competitive, rail services need to be improved, also as complementary for other modes (land, sea and air transport) so as to form an efficient and seamless transport Roles in Logistic & Distribution
  • 14. FOLLOW-UP :Objects to be managed and regulated Railway infrastructure: Rail track Stations Other train operating facilities (signal, telecommunication and electricity) Rolling stock (trains): Locomotive Cars (for passengers) Wagons (for freight) Special facilities or rolling stock (for track maintenance-- MTT) Workshops, depots for R/S maintenance
  • 15. Railway Organization Model Separated : Multi-Operator Integrated Model (a & b) BUS BUS 1 2 BUS n (c) TAC B U P & S (a) BUP TAC Notes: BUP & S = Infrastructure and train operating company (integrated) BUP = Infrastructure management company BUS = train operating company D A = division of transport DP = division of Infrastructure TAC = track access charge B U P & S BUS n (b) D A n TAC D P
  • 16. Railway Restructuring: Variables that needs to be controlled COMPETITION STRUCTURE Integrated Dominant/Tenant/incremental Separated Public/Mixed/Privt Ownership Intermodal or IN/FOR Market Tariffs Access Regime Entry/Licensing Safety Government Support REGULATION
  • 17.
  • 18. Organization and Ownership OWNERSHIP SPECTRUM ORGANIZATION STRUCTURE SPECTRUM True “separation’’
  • 19. Possible Stages of Institutional and Regulatory Development ( Service providers) Past Now 14 Follow-up Future
  • 20. Key Players on Railway Railway Law 23/2007 categorizes at least six key parties or players in the rail sector i.e.: Governments (central, province, regency), Business entities or companies as service providers of infrastructures and/or transport services) Research institutes, Universities, Customers, and Societies ( viz. industries)
  • 21. NRMP National Railway Master Plan & Indonesia Railway Forum Rail sector Long term investment Plan(20 years) Strategy & Long term Action Plan Rail Improvement Projects ( 4 to 5 years) Yearly Program and Project List ( 1 to 2 years / multi years) MTDP Rail Budget Indonesia Railway Forum Parliament and Ministerial Approval