Transportation infrastructure improvement: Private companies asked to work on TOD bus terminals

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Bisnis Indonesi: Peningkatan infrastruktur transportasi: Swasta diajak garap TOD terminal bus

29 October 2019

By: Rinaldi M. Azka

Bisnis, Jakarta – The government ensures transportation infrastructure development with 19 type A bus terminals. The terminals are built using the 2020 state budget and will involve private companies to prevent shortage of financing and optimise commercialisation aspect.

Land Transportation Director General of the Transportation Ministry Budi Setiyadi made sure that these 19 type A bus terminals would cost the 2020 state budget Rp500 billion.

Type A bus terminals are terminals that serve passengers of inter-province, inter-border, provincial inter-city, and rural transportations.

According to Budi, all terminal constructions will be under a cooperation deal with private companies that is planned to use the transit-oriented development (TOD) concept, and the terminals will be a mixed-use building. This is a concept that accommodates several property functions.

Hence, the terminals do not function only as a place for inter-province transportations to go through, but it also functions as a place for entertainment, shopping, and residence, such as apartments or hotels.

“In 2020, there will be 19 TOD [type A terminals]. If other transportation modes can be made to reach the terminals, we will do so. [The terminals] will be mixed-use [buildings], which are terminals with several storeys and functions such as shopping and residence,” he said to Bisnis.

The 19 terminals are Amplas-Medan, Rajabasa-Lampung, Harjamukti-Cirebon, Pakupantan-Serang, Leuwi Panjang-Bandung, Guntur Melati-Garut, Sumurpanggang-Tegal, Tingkir-Salatiga, Pekalongan, and Mangkang-Semarang.

There are also Demak, Bulupitu-Purwokerto, Tirtonadi-Solo, Tamanan-Kediri, Mengwi Bali, Bolaang Mungundo-North Sulawesi, Induk Lumpe-Pare-pare, Puuwatu-Kendari, and Samarinda Sebrang-Samarinda.

Budi explained that these TOD terminal constructions would be in the same class as airports in terms of facilities, management, and maintenance. There will also be a terminal that will be integrated with a dock, such as the one that will be built in Tanjung Priok, Banten by PT ASDP Indonesia Ferry (Persero).

According to him, the infrastructure construction can modernise urban busses to be a civil mass transportation.

Infrastructure Director at Directorate General of Land Transportation of the Transportation Ministry Risal Wasal said that the target of renovating the type A terminals was realistic as, besides the state budget that had been prepared by the government, the Transportation Ministry had received a number of commitments for investments from private companies.

“We have prepared DEDs (detail engineering design) [for] 46 terminals, 19 of which will be built using the state budget. The concept is [for the terminals to be] mixed-use [buildings]. [Terminals] using the state budget may have an area that we have prepared for third parties, or we will build [the terminals] to have 2 to 3 storeys. Then, the top floor will be under a cooperation deal with the private company,” he explained to Bisnis recently.

He mentioned that, for cooperation with private companies, the terminals would be built using various schemes, it could be cooperation in utilisation (KSP) or public-private partnership (PPP).

44 Terminals

He said that there are 44 terminals that were targeted by private companies to be revitalised and managed under a cooperation deal. From the 44 terminals, 10 of which are in the vicinity of the 19 terminals that will be built by the government using the state budget.

“10 of the 19 terminals are near [the terminals] that the investors are interested in. If the investors want to use the 10 areas that are planned to be built using the state budget, the budget will be diverted.” Our target is [to build] 46 terminals that already have a DED, there may be more [terminals],” he revealed.

He revealed, after an announcement during the investor gathering, that the private companies were also interested in the development of several terminals. Then, several private companies are interested in developing those terminals.

There are currently 127 type A terminals in Indonesia, 22 of which have not been taken over by the Transportation Ministry. Meanwhile, the other 105 terminals have been taken over. 98 terminals have been built, and 46 of which are ready to be rehabilitated.

Risal also said that there were at least three challenges of developing TOD terminals. Firstly, in the side of regulation, land transportation passenger terminals are in the negative investment list (DNI) in Presidential Regulation Number 44 of 2016.

The regulation is on List of Lines of Business That are Closed to Investment and Lines of Business That are Opened for Investment Under Conditions. Hence, it is impossible for foreign investments to enter.
Secondly, full support from regional governments are required as the terminals are mixed-use buildings so there must be a reorganisation. Thirdly, financing. Even though there is budget from the state budget, investments from private companies will make a significant difference.

Transportation Minister Budi Karya Sumadi explained that his agency would focus on two things in improving land transportation, namely constructing mass transportations and intercity transportations.

Regarding mass transportations, he targets that several project constructions such as the second phase of Mass Rapid Transit (MRT) and the Light Rail Transit will be more intensive with at least 100 km of tracks at each mode.

“[Mass transportation] in Jakarta and other major cities [will be developed]. It will also be regulated,” he said.
 

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