Railway Development in Indonesia

7/30/2019 Railway Development in Indonesia

1/26

PRESENTED BY:

TAUFIK HIDAYAT & HARRY ARJADI

RESEARCHER, INDONESIAN INSTITUTE OF SCIENCES

RAILWAY DEVELOPMENTIN INDONESIA


2/26

Outline


3/26

Background and the History of Indonesian Railways

At the earlier, IndonesianRailways was built to supporthorticultural and agricultural

commodities export and formilitery expansion ofcolonial, which wasdominated

at Java

Since 1999 and refer to Law

23/2007, the single operatorof Indonesian railways wasPT. KA (Persero) that coveredpassanger, cargo, private

company service, etc.


4/26

Present Condition of Indonesian Railways

y As company PT Kereta Api (PT KA) who runningrailway transportation in Indonesia has vision andmission, they are:{ Vision: to be the best providers of railway service that focus

on service to the customer and meet the expectations of

stakeholders

{ Mission: Organizing the railway business and its support,through good practice and good organizational model for

providing high added value for our stakeholders andensuring environmental sustainability through four mainpillars i.e. safety, right time, services and pleasantness


5/26


Present Indonesian Railway serve four region

operation;1. Java,

2. South Sumatera,

3. West Sumatera, and4. North Sumatera,

Consisting more then 4,500 km track Plus Local

commuter about 400 km.

Several performance analysis about IndonesianRailways is showed at the next pages.


6/26


The map indicates most of the major cities are alreadyinterconected in Java. The main requirements in Javawould related to : Upgrading existing lines, Buildingaccess lines to key facilities, expanding urban services


7/26


Sumatras railwaysystem is quitedifferent from the railnetwork on Java,divided into threewidely separated

system that fail (i) tomeet the needs ofintercity passenger andfreight transport and

(ii) do not adequatelyserve newly emergingdevelopment in thecoal and plantation

sectors


8/26


y Trend of Passenger Transportation Volume (2004 2008)

2004 2005 2006 2007 2008

AnnualProgram 163.14 157.86 154.09 164.00 177.60LongTermPlanning 242.75 169.56 154.09 164.00 177.60Realization 149.79 151.49 159.30 175.50 197.77

0.00

50.00

100.00

150.00

200.00

250.00

300.00

PassengerMillion

AnnualProgramLongTermPlanningRealization


9/26


y Trend of Transportation Services Selling Volume (2004 2008)

2004 2005 2006 2007 2008


0.00

5.00

10.00

15.00

20.00

25.00

Passenger

km



10/26


y Trend of Passenger Transportation Services Income (2004 2008)

2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8

A n n u a lP r o g r a m 1 .5 2 6 1 .5 3 0 1 .7 2 1 1 .7 7 3 1 .8 1 3L o n g T e r m P l a n n i n g 1 .7 8 6 1 .5 3 0 1 .7 2 1 1 .7 7 3 1 .8 1 3R e a l i z a t i o n 1 .4 4 6 1 .5 8 7 1 .6 8 5 1 .7 5 3 2 .2 0 1

0 . 0 0 0

0 . 5 0 0

1 . 0 0 0

1 . 5 0 0

2 . 0 0 0

2 . 5 0 0

Income(BillionRp.)

A n n u a lP r o g r a mL o n g T e r m P l a n n i n gR e a l i z a t i o n


11/26


y Trend of Goods Transportation Services Volume (2004 2008)

2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8

AnnualProgram 2 1 .5 1 2 0 .2 3 1 8 .6 1 1 8 .2 0 2 0 .3 0L o n gTerm Planning 2 7 .2 2 1 9 .7 7 1 8 .6 1 1 8 .2 0 2 0 .3 0Realization 1 7 .4 6 1 7 .3 3 1 7 .2 0 1 7 .2 0 1 9 .5 5

0.00

5.00

10.00

15.00

20.00

25.00

30.00

Ton(Millio

n)

AnnualProgramLongTerm PlanningRealization


12/26


y Trend of Goods Transportation Services Selling Volume (2004 2008)

2004 2005 2006 2007 2008


0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Ton(Million

)

km



13/26


y Trend of goods transportation services income (2004 2008)

2004 2005 2006 2007 2008

AnnualProgram 601 676 1,067 1,173 1,398LongTermPlanning 662 607 1,067 1,173 1,398Realization 564 704 1,117 1,091 1,423

0

200

400

600

800

1,000

1,200

1,400

1,600

Income(Billion

Rp.)



14/26


y In otherwise, the realization of income generallydoesnt reach the annual and long term program(except in 2006) because several reason:{ Waiting of passenger trains.

{ Rate of turn wagon is high (average over 3 days).

{ Canceling of freight trains.

{ Technical problems by rolling stock and infrastructure.


15/26


y Train Accident (2004 2008)

0

20

40

60

80

100

120

140

160

180

2004 2005 2006 2007 2008

TechnicalFactor 127 110 52 44 36Staff'sNegligence 7 12 5 12 10Other 3 3 31 59 40

NaturalFactor 5 3 7 10 3Outsider 32 22 22 22 16

Prce

ntage

TechnicalFactorStaff'sNegligenceOther

NaturalFactorOutsider


16/26


y Human resources, there are still some factors toconsider increasing the productivity of humanresources in the future. The factors are:

{ The quality of human resources remains low, as withmental aspect, as well as formal education

{ Inappropriate human resources are placed for theircompetence, not rewards and punishments executed,unclear job descriptions, and have not applied, the job

description is unclear, but the application of merit system(in terms of management)

' l f


17/26

Company's Long-Term Plan of PT KAYear 2009 - 2013

Strategic Challenge; Aspects of the operation

Financial aspects

Human resources and IT aspects

Strategic Road Map; Consolidation

Improve capabilities

Innovation World Class

C ' L T Pl f PT KA


18/26


y Strategic Challenges.

PassengerOperation Planning

(GAPEKA)

Freight

Operation Punctuality

Safety

Service

Budgeting

investment

Asset Utilization

Competency

Finance

HumanResource andInformation

Technology

Operation

ProfitAnd

Net Profit

C ' L T Pl f PT KA


19/26


y In order to company revenue should be able to cover all costsof both, so strategic thinking is required as follows:{ Transportation revenue growth should continue to increase, to

compensate for the stagnation of the growth in passenger transport. In2011 projected revenues exceed revenues from freight transport;

{ Non-transportation revenue should be increased from only 0.1% to atleast 5% of total operating revenues

y Then the solution that can be done is:{ Identify passenger and goods transport mapping (occupancy rate, etc.),

to increase the volume;{ cost efficiency is very relevant to review costing system;{

developing the potential of freight in the region outside Java (SouthSumatera Regional Division);{ Development of non-transport activities through property management,

advertising, and utilities (cable, pipeline, telecommunications, etc.).

C ' L T Pl f PT KA


20/26


y Strategic Road Map

R d M f th D l t f


21/26

Road Map for the Development ofCorporate Human Resources

2009 2011 2013

I.

PerformanceIndicator

DevelopmentInisiation

Re

structurisation

Fase

OperasionalFase Bussiness

Value

Improvement

Fase

a. Profitperstaff TBO TBO TBOb. Staffsatisficationindex TBO TBO TBOc. Staffcompetencyindex 40% 60% >80%d. Amountofsectionheadlevel

andupperstaffpersentasione. Structuralperfunctionalstaff

rasiopersentasion 90:10 70:30 60:40II. MilestoneofHumanResource

Development

a. FinalisasionandStandarisationofHumanResourcedevelopmentBussiness

Process

FinalImplementationofCompetencybasedStaffPerformance

Assesment

HumanResourceEffortinCorporateHoldingControl


22/26

Revitalization Of The Railways Sector


23/26


Rail network

developement need inKalimantan for urban /suburban services, andto freight the coal fromthe mining areas. Thenetwork may beconstructed in the shortterm as special projectswith private sectorfunding


24/26


As well asKalimantan,Sulawesi need

also to developerail network forurban / suburbanservices


25/26


MRT system planis signed to bebuild in Jakartacity area


26/26

Documents

Railway Development in Indonesia