IndII is currently in its second program phase, which will finish end-January 2017. The first phase of IndII was completed in June 2011 with a full wrap-up of the program at the Phase I Concluding Event. Click here to view a summary table of IndII phase 1 activities, and here for a summary table of planned activites in phase II.

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Transport

In the Transport sector, IndII is concentrating on consolidating achievements and building a sound foundation for IndII’s replacement after January 2017. IndII innovations in policy, planning and delivery are being re-assessed for their effectiveness and sustainability: these include the approach taken by the Provincial Road Improvement and Maintenance program (PRIM) to incentivising provincial road maintenance; the introduction of new financing and performance-based models (including Performance-Based Annuity Schemes [PBAS] or availability models) for the delivery of expressways and other major projects; and reforms to urban bus services. In parallel, tools and techniques introduced by IndII are being made an integral part of the government’s procedures for planning, delivering and managing transport infrastructure and services. These include the introduction of national traffic modelling to support national road planning, a new national road asset management system (RAMS), a provincial road maintenance programming and budgeting tool (PRMS) and corporate management and operational guidelines for Transjakarta, Jakarta’s major bus service provider. 

The Transport sector’s activities have always been aligned with National Medium Term Development Plan (RPJBM) and Strategic Plan (RENSTRA) priorities, and indeed have helped shape those guiding documents. They have transformed earlier spending strategies that focused on reactive, short-term projects into a forward-looking, longer-term, network-based vision, highlighting the urgent need to address a substantial investment backlog and provide additional capacity for the growing economy, particularly in the roads sector. Private sector participation, fair competition, incentives and life-cycle cost optimisation have been constant underlying themes. New IndII planning tools have shown how critical road network capacity constraints are, and have sharpened the focus on preparing and expediting the project pipeline. New methods of program financing and delivery introduced by IndII, including availability and performance-based approaches, offer alternatives to the conventional revenue-based model used for toll roads. New design standards and procurement arrangements recommended by IndII offer life-cycle efficiencies, helped by a strengthened asset management function and tools. In urban transport, IndII support for TransJakarta’s transition to a Local Government-owned enterprise (BUMD) and reform of BRT and non-BRT bus services will improve efficiency and customer service, and ultimately help to reduce traffic congestion. Assistance to DGLT and four pilot cities under an urban road safety program (IURSP) has opened a new channel for central government assistance to local administrations. 

With new leaders now in senior Government of Indonesia (GoI) positions, it is important to subject ongoing transport activities to critical scrutiny: Do they continue to address the most urgent needs? Are they effective in leveraging sustainable changes in infrastructure governance, efficiency and pace and quality of delivery? Indonesia’s transport sector faces very serious policy, institutional, strategy, cultural, funding, financing and delivery challenges. Rapidly growing demand is outstripping supply. The quality of infrastructure is generally very poor. Traffic congestion in cities and along important inter-urban corridors chokes economic, trade and income growth. While IndII cannot resolve all shortcomings, it has structured its priorities to address the main issues, in many instances by providing a demonstration of needed reforms through use of pilot projects.