RESTRUCTURING INDONESIAN RAILWAY – INTEGRATION OR SEPARATION
UTUT WIDYANTO, Prof. Dr. Ir. Siti Malkhamah, MSc.
2013 | Tesis | S2 Mag. S. & T.Transportasi-
In 2007 the Government issued Law No. 23/2007 on Railways replacing Law No. 13/1992 on Railways, with one of the important talking points is that the Government is opening the option for private sector or Local Government to be involved in railways. By restructuring the railways, the Government hope that problems such as poor infrastructure poor conditions, poor rolling stock condition, limited network (only in Java and Sumatra island), train accidents, and poor service quality (train delays), could be minimised and the funds allocated is used properly. The objectives of this research are to investigate organisational and structural changes for Indonesian railway industry; investigate experiences from other countries in railway restructuring and privatisation; and analyse the integration and separation model of restructurisation. The research is conducted through means of qualitative method where data and materials used are mostly from various books, journal, reports, and academic papers. Those information were studied to gain perspective and develop an approach on how to restructured the Indonesian railways. The research is comparing experience from other country in the world on how they manage the restructurisation of their railway and find the best approach for Indonesian railway. Those country are: Germany, Sweden, Japan and Britain. The first approach of vertical separation model has advantages of eliminating potential discrimination from the current holding company, increase the transparency in railway fund management, and more competitive market and disadvantages of high transaction costs, a need for monitoring of the other’s performance, the difficulty in creating complex performance schedules, and the stimulation of incentives for the track authority to invest in new facilities to increase efficiency and improve safety. The integration model has advantages of lower transaction cost, easy to manage path allocation, and efficient scheduled design and disadvantages of a chance of misuse railway fund allocation, also potential discrimination to the new entrants, could be by using force or foul practices.The author concludes that the separation model is still the best approach for restructuring Indonesian railway for several reasons. First, because it is implied by the Law that institutional change is needed; secondly, it increases transparency in the allocation of funds and the management of railway operation; thirdly, it improves management focus (since the infrastructure and operation are managed by different entities) and lastly it could encourage fair competition between the current operator and new entrants.
Kata Kunci : Restructurisation, Separation, Funds, Operator
