Contactless payment transactions: Obstacles in the mission to modernise toll road transactions
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Transaksi pembayaran nirsentuh: Aral misi modernisasi transaksi jalan tol
11 November 2024
By Alifian Asmaaysi
Jakarta, ID – The policyholders' breakthrough in modernising transportation via toll roads has encountered an obstacle. The multi-lane free flow (MLFF) system, which was planned to be implemented at the end of this year, must be delayed.
The MLFF system has been in development for three years, following the policyholders' cooperation with the Hungarian government as a strategic partner in implementing the contactless payment system.
Even though it has been designated as a national strategic project (PSN) and was inaugurated at the end of President Joko Widodo’s administration, the implementation of the MLFF system has remained stagnant.
The investment that has been spent is substantial. The project, undertaken by Roatex Indonesia Toll System (RITS), has required an investment of Rp2 trillion.
In total, the investment from Hungary has reached US$300 million, equivalent to Rp4.75 trillion.
The investment realisation is primarily used to carry out the development in accordance with the direction from the Indonesian government, which includes enhancing the security of the system to prevent potential losses by implementing a barrier.
RITS President Director Atilla Keszeg stated that the MLFF system would be operational in the first quarter of 2025. This target has been delayed from the initial plan to implement the system by the end of 2024.
He assures that the MLFF system is now far more prepared compared to when it was first tested on toll roads in December last year.
“We are three times more ready. We have the technology that will be used. We are ready, and our technology is ready. We are waiting to collaborate [with the government],” he said on Wednesday (6/11).
He added that, before it is fully implemented, the government and RITS will conduct a full trial of a single-lane free flow (SLFF) system.
Atilla mentioned that RITS will collaborate with other companies to modernise transportation via toll roads.
“We are considering and planning the implementation of the MLFF system for the first quarter of 2025,” he stated.
RITS Director Renaldi Utomo added that the MLFF project has costed an investment of more than Rp2 trillion.
This investment represents the amount that has been utilised to develop the MLFF system since the Hungarian government officially began its cooperation with the Indonesian government in March 2021.
At the time, this investment was realised through a bilateral cooperation between Indonesia and Hungary during President Joko Widodo's administration.
“How much of the investment [for the MLFF system, which amounts to US$300 million or Rp4.75 trillion] has been used? So far, it has probably reached a little more than half [around Rp2 trillion],” he explained.
In response, Hungarian Ambassador to Indonesia Lilla Karsay stated that the investment of Rp4.75 trillion that has been spent is a substantial amount.
Regarding this matter, the Hungarian government remains committed to cooperating with the new Indonesian government to encourage the implementation of the MLFF system.
“The investment that has been spent is the tax money of Hungarian residents. That was what we talked about. So, I think we will still be committed,” she stated.
Lilla also stated that if the system is not realised, it will affect the bilateral relationship between Indonesia and Hungary.
“The worst-case scenario is to leave without implementing the project. I think there is no one who wants to do that,” she stated.
National programmes
On the other hand, Lilla assures that the implementation of the MLFF system will support government programmes, such as the free nutritious food programme initiated by President Prabowo Subianto.
Lilla mentioned that the MLFF system will enhance the effectiveness of domestic logistics. Therefore, she believes that the Indonesian government must be fully committed to accelerating the implementation of the MLFF system.
“In line with the free nutritious food programme, we believe that the MLFF system is essential for Indonesia to enhance the production of the food industry,” he explained.
On a previous occasion, Triono Junoasmono, also known as Yongki, the Infrastructure Financing Director General of the Ministry of Public Works, assured that the MLFF project will continue despite the change in government.
He stated that the project is currently being prepared to enter the negotiation stage between Hungary and the Ministry of Public Works.
“Yesterday, they prepared the proposals. The points have been delivered from Roatex to us for review. We are striving to realise it as soon as possible,” he stated.
Initially, the MLFF system was scheduled to be implemented by the end of this year. However, the process has been hindered following the first trial on the Bali Mandara Toll Road, which encountered several issues.
According to the Toll Road Regulatory Agency (BPJT), the seven toll segments selected for MLFF implementation are spread across the Trans-Java Toll Road, Bali Toll Road, and toll roads in Kalimantan.
The seven toll segments include the Bali Mandara Toll Road, the Balikpapan-Samarinda (Balsam) Toll Road, the Jagorawi Toll Road, and the Jakarta-Cikampek (Japek) Toll Road.
Additionally, there are the Soedijatmo Toll Road, the inner city toll road, and the Jakarta Outer Ring Road (JORR). These are the toll segments that will implement MLFF earlier during the transition period.
The background for the implementation of the MLFF system is based on a 2019 World Bank finding, which states that Indonesia loses Rp56 trillion annually due to congestion on toll roads.
According to a feasibility study document from the Ministry of Public Works, Indonesia loses Rp4.4 trillion annually due to vehicle queues at toll gates.
Therefore, the implementation of the MLFF system is seen as a solution to this issue.
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