Wednesday, 19 November 2008

Road and Toll Road, Indonesia

As a consequence of Indonesia’s geographical diversity, population distribution, and the relative disparity of economic development between Java and the other islands, the government successive medium-term development plans gave particular emphasis on transportation development and a transport system capable of satisfying demand in an efficient, safe, fast, reliable, and affordable manner. Transportation is seen as having a vital role in promoting domestic trade, particularly to and from the less developed areas.
Indonesia’s transportation system consists of land, sea and air transport. This chapter is concerned mainly on the road infrastructure under the responsibility of the Ministry of Public Works (MPW).
According to Law 38/2004 on Road, road provision is the responsibility of both local and central government. Central government is responsible for inter-urban arterial and collector roads, while the provincial government is responsible for inter-kabupaten collector and local roads, and the kabupaten (regency) government is responsible for intra-kabupaten local roads. Basic statistics: Table 1. Conditions of Road Networks in Indonesia1 Source : PJM 2005 and KMPU 2006 The Directorate General of Highways (DGH) under MPW is responsible for managing all national roads - these are defined to include toll roads and limited access high grade highways. Through reclassification the national road network has been increased from 26,000 km to 34,000 km, with 649 km of freeways/toll roads.
Some remote areas are still not connected to the road network. A national survey showed that roughly five percent of the population could not be reached by road, and an additional three percent lack any reliable connection to the road network. Overall the network is in poorer condition in the eastern region.
Congestion has increased, especially in Java and urban centers, but little capacity has been added. The JARNS study remains the most current source, projecting about 55% of the arterial network on Java being congested by 2010, and the need for about 2,000 km of toll road.
National roads are mostly in sound condition, provincial roads are less well maintained, and over half of the kabupaten roads is in poor condition creating a substantial need for rehabilitation and upgrading to the order of 7,000 km.
Substantial public expenditure will be needed to address the large backlog of construction and rehabilitation. Road expenditure in the national and regional development budget fell during the financial crisis in 1997/98. The APBN budget for roads in constant prices has risen to the level the crisis. Compared to the situation in 2004, the budget allocation has increased substantially to 13% in 2005 (16% is proposed for 2006). However, more allocation will be needed to address the large backlog, estimated at Rp 17 trillion in 2004.

Source: KKPPI, Sector Review 2006

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