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Managed by: SMEC
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The Indonesia Infrastructure Initiative (IndII) is an Australian Aid initiative managed by SMEC International on behalf of the Australian Government. Its goal is to promote economic growth by working with the Government of Indonesia to enhance infrastructure policy, planning and investment. IndII was originally established for a three-year period ending in June 2011. A follow-on project is now underway and will operate until June 2015. IndII focuses primarily on water and sanitation issues and on transport by road, rail and sea, as well as a number of cross-sectoral policy issues. All of IndII’s activities are designed to build local capacity at both national and sub-national levels. IndII coordinates its efforts with other donors participating in major infrastructure projects, and promotes partnerships between government and the private sector. A selection of its current work includes incentive grants for local governments to invest in their water utility companies, assisting with the development of national master plans for ports and railways, and formulating new guidelines and procedures for the management of transport sector public service obligations.



Finding Creative Solutions for Transport Sector Funding
A focus group discussion on alternative funding options for transport infrastructure was held on 16 April 2014 at Artotel in Jakarta. The discussion addressed the need for Indonesia to develop its transport infrastructure over the next five years due to rapid economic growth. After an opening speech by the Bappenas Director of Transport Bambang Prihartono, Indonesian transport expert Prof. Suyono Dikun and other Indonesia Infrastructure Initiative (IndII) transport consultants delivered a presentation on existing funding schemes for transport and the pressing need to expand transport infrastructure. The consultants noted that the cost of the needed infrastructure will exceed funds available from the government budget and the performance based annuity scheme that the Directorate General of Highways in the Ministry of Public Works is planning to implement. The event was attended by 65 participants representing ministries involved in transport funding, banks, and other financial funding institutions. Following the presentations, they held a productive discussion about the opportunities for funding in the existing state budget, options from various financial institutions, and the legal aspects of funding mechanisms.
Planning Future Public Transport
DKI Jakarta Transportation Agency (Dishub) held a workshop on the Future of Public Transportation in Jakarta on 2 April 2014. It focused on large and medium size buses that are not part of the Bus Rapid Transit system, and the mini-vans known as angkot and mikrolet. It was noted that from 2002 to 2011, motorised trips within greater Jakarta more than doubled, from 22 million to 53 million. Due to population growth and rising income levels, car trips have more than tripled and motorcycle trips have multiplied by nearly six times. Yet during the same period, the number of trips using public transport trip remained constant. The inconvenience and poor safety standards of non-BRT buses contribute to this situation. IndII is supporting Jakarta’s transport regulatory agency (Dishub) to encourage the use of public transport instead of private. Fifty three participants including representatives of Dishub, the Ministry of Transportation, academia, the Australian Government, and IndII considered presentations on bus industry reform, bus fleets and infrastructure, route network rationalisation, fare options, ticketing systems and user information. IndII consultants explained IndII’s role and proposed recommendations, which include a pilot project on corridor improvement to complement BRT and integrate public transport services. Harun Al Rasyid Lubis from Institut Teknologi Bandung led the discussion. Participants asked detailed questions about the pilot, related to its location, ticketing issues, and difficulties related to the lack of Dishub regulations. They also asked about using IT for bus scheduling and whether the electronic system, especially mobile applications, can be developed locally, instead of using another country’s applications.
Capacity Building Workshops Support the Preparation of the New Makassar Port
IndII held two workshops in Jakarta on 17 and 18 February 2014 as part of its capacity building work in the port sector. In keeping with the National Ports Master Plan, the Directorate General of Sea Transportation (DGST) is improving national port capacity and efficiency by encouraging competitive private sector participation. With IndII support, DGST is preparing a master plan and pre-feasibility a New Makassar Port that will serve as a model for other port administrations when they develop Public Private Partnerships. The workshops in Jakarta covered demand forecasting techniques and operations analysis and capacity assessment, and are part of series designed to help the Makassar Port Authority and DGST review options for private sector participation and to prepare a sound business case for PPP procurement. Sixty-two attendees from Jakarta and Makassar discussed challenges and explored strategies related to topics such as tariff policy and penetration factors for container terminals. Four future workshops will cover additional subjects related to port development.