Land transportation: Businesses pleased with Trans-Java toll connectivity

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 - Angkutan Darat: Pebisnis Senang Tol Trans-Jawa Terhubung

30 November 2018

By Ilham Budhiman & Hendra Wibawa

Jakarta — Land transportation business players show a positive welcome with the recently-connected Trans-Java toll spanning 870 kilometres from Merak, Banten to Surabaya, East Java.

Secretary General for the Central Board (DPP) of Land Transportation Organisation (Organda), Ateng Aryono, said that the operation of Trans Java toll road would provide greater opportunities to land transportation business players, particularly bus lines. The opportunity would include improvement in the occupancy rates of inter-city, inter-provincial (AKAP) buses.

In addition, the toll road could shorten the travel time of Merak – Surabaya. However, Ateng declined to comment on the estimated increase in AKAP bus utilisation level with the Trans-Java toll road commencing operation.

“In the end, if travel time improves, [road] users will reconsider to ride buses [again], particularly in areas without any airports,” he said, Wednesday (28/11).

For next year, Ateng predicted that bus line operators would continue to survive amidst fiercer competition with personal vehicles and online transportation.

As long as the policy is maintained, he added, business players will find opportunities for their business to survive.

“All [businesses] are seeking opportunities – survival opportunities. All modes are going to seek survival opportunities, like AKAP, AKDP (inter-city, intra-provincial) transports, city transports, including cargo transports,” he affirmed.

Courier service businesses were also pleased with the connectivity of Trans-Java toll road, as it could cut the cost structure in parcel transport. An evidence of it would be the completed construction of Suramadu Bridge.

“We were able to save cost by up to 50% - 60% in the region, with the first impact certainly being experienced by Bangkalan [Regency],” said Vice President Marketing of PT Tiki Jalur Nugraha Ekakurir (JNE), Eri Palgunadi.

On the contrary, Deputy Chairman for Distribution and Logistics Division of DPP of Indonesian Association of Truck Businesses (Aptrindo), Kyatmaja Lookman, said that there would only be an increase in cargo delivery through Trans-Java toll road once it is fully connected.

However, he argued that the improvement in logistics transport leveraged by Trans-Java toll road depends on the toll cost that truck lines have to bear.

Kyatmaja who is also the CEO of Lookman Djaja still emphasised on the cost to be borne, as the tariff charged could be much higher.

“Yes [it would improve truck utilisation], but now the remaining issue is the cost. If the toll tariff is expensive, well, [the Trans-Java toll] will have no benefit,” he said.

Kyatmaja proposed to simplify the vehicle categories, as implemented in the Jakarta Outer Ring Road (JORR) toll segment, namely from five categories to only three.

“[Category simplification] could be very helpful to reduce cost. This [solution] would be more economical,” Kyatmaja said.

He estimated that the Trans-Java toll road tariff for large vehicles could reach up to Rp1 million – Rp2 million per vehicle, or much higher than small vehicles which could only reach Rp580,000 per vehicle.

Previously, after inaugurating the operation of 51-km Sragen – Ngawi segment of the Trans-Java toll road, President Joko Widodo stated that inauguration of the other four toll segments of Trans-Java toll road would follow soon.

Weighbridge

From Kalianda, Lampung, the Transportation Ministry is planning to build a weighbridge on all segments of toll roads, including on the Trans-Java toll road, in an effort to resolve the issue with over-dimension and overload (ODOL) trucks.

“There will be a regulation requiring all toll roads in Indonesia to have a weighbridge,” said Director General for Land Transportation of the Transportation Ministry, Budi Setiyadi, Monday (26/11).

Currently, he stated that preparations for the construction of weighbridges on toll roads are being discussed with the Toll Road Regulatory Agency (BPJT) and PT Jasa Marga (Persero) Tbk.

Budi said that the first weighbridge to be construction will be located in Mangkang, Semarang. “There is one [weighbridge coming up] on Mangkang Toll road, currently being prepared by Jasa Marga. BPJT has approved the construction of weighbridges on all toll roads,” he disclosed.

Presently, there are already 34 weighbridges in Indonesia managed by the Directorate General of Land Transportation, out of this year’s target of 42 weighbridges.

Next year, the Directorate General of Land Transportation is set to take over the operation of 93 weighbridges from regional governments.

The takeover of weighbridges operation by the central government from regional governments is the mandate of Law No. 23/2014 regarding Regional Governments.

“We will review the 93 weighbridges targeted for operation by the central government due to lack of personnel,” Budi said.

Based on the calculation of the Directorate General of Land Transportation, he added, the required human resources for one weighbridge could reach up to 60 in order for the weighbridge to be able to operate 24/7. Fewer than 50 personnel had always operated one weighbridge, so weighbridges were only operated during workdays.

“We are short by a lot of personnel. Hence, we encouraged the private sector to participate in operating the weighbridges,” Budi said.

This year, there are three weighbridges to be operated jointly with the private sector under the Availability Payment of the Public-Private Partnership (PPP) scheme, namely one weighbridge in South Sumatra and two weighbridges in Riau. For 2019, Budi also conveyed the plan to continue the joint contract to operate the Motor Vehicle Weighing Implementing Unit (UPPKB) or weighbridges in Indonesia with PT Surveyor Indonesia (Persero).

According to him, his organisation intends to continue involving PT Surveyor Indonesia (PTSI) to assist the government in modernising the operation of weighbridges.

The plan to continue collaborating with PTSI in weighbridge co-management was based on positive collaborations in the past.

Next year, Budi continued, his organisation is ready to earmark Rp92 billion to fund the co-management of tens of weighbridges already managed by the Directorate General of Land Transportation.

There are seven weighbridges managed by PTSI – three in Sumatra and four in Java.

The SOE acts as the co-operator of UPPKB, assisting with the development concept, preparing a standard operating procedure (SOP) for weighbridges, personnel training, as well as disseminating weighbridge operational plan.

Development in the Number of Weighbridges in Indonesia