Institutional model development for implementation of track access charge in Indonesia

Mohammed Ali Berawi, Gerald Reka Risjad Brasali, Gunawan, Mustika Sari

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Provision of transportation services and infrastructure provision is an essential key to economic growth and sustainable development. As one of the developing countries, Indonesia is currently trying to improve its competitiveness by increasing the quality and availability of train services and infrastructure. Train services play a crucial role in everyday life, offering speed, safety, and a large capacity to deliver people from one place to another. However, Indonesia is now dealing with Operation and Maintenance (OM) problems caused by the financing issue burdened by PT Kereta Api Indonesia (Persero) as the sole operator of railroad infrastructure and facilities. This issue can be addressed by implementing the Public-Private Partnership (PPP) scheme as a financing approach for the OM of railways. Therefore, this study analyzes the financing and institutional schemes from the PPP model by calculating the life cycle cost (LCC), consisting of development costs, OM costs, and revenues. An optimal IRR of 14.05% is obtained from all available financing, which shows that the project is financially viable. Based on the IRR, the private sector was found to have shared development costs of 42.78%, operations and maintenance of 66.67%, and revenues of 71.99%. Meanwhile, the rest is the government's responsibility.

Original languageEnglish
Title of host publication5th International Tropical Renewable Energy Conference, i-TREC 2020
EditorsRidho Irwansyah, Muhammad Arif Budiyanto
PublisherAmerican Institute of Physics Inc.
ISBN (Electronic)9780735441286
DOIs
Publication statusPublished - 23 Sep 2021
Event5th International Tropical Renewable Energy Conference, i-TREC 2020 - Depok, Indonesia
Duration: 29 Oct 202030 Oct 2020

Publication series

NameAIP Conference Proceedings
Volume2376
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Conference

Conference5th International Tropical Renewable Energy Conference, i-TREC 2020
Country/TerritoryIndonesia
CityDepok
Period29/10/2030/10/20

Keywords

  • Internal Rate of Return (IRR)
  • Public-Private Partnership
  • Railway

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