Rural road in Indonesia: Issues and challenges

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1 Rural road in Indonesia: Issues and challenges Max Antameng Senior Policy Advisor Directorate General of Highways Ministry of Public Works- Indonesia

Geographically, this country is located between 94 45 and 141 05 East Longitude, 6 8 North Latitude and 11 15 South

2 Indonesia Overview Indonesia, an archipelago of 17,504 islands extends 5,120 km from east to west and 1,760 km from north to south. Geographically, this country is located between and East Longitude, 6 8 North Latitude and South Latitude. INDONESIA The vastness of the area and the uneven distribution of the population create an urgent need for roads in Indonesia, not only as a connection between areas, but also for political, defense, and security functions.

3 Result of World Competitivenesss Index INDONESIA Indonesia Competitiveness Index improving from 54 (2009) to 50 (2013)4 (2009) Country Period Swiss Singapura Swedia Jerman Amerika Serikat Malaysia Brunei Darussalam Thailand Indonesia Filipina Vietnam Kamboja

4 RESULT 2013 FOR INDONESIA (sources: WEF)INDONESIA

5 Comparation of logistic Performance Index (sources: World Bank)

6 Issues and challenges of Road Sector

7 Infrastructure Development Guidelines based on Spatial Plan REGIONAL APPROACH IN INFRASTRUCTURE DEVELOPMENT Regional development approach is used on Public Works infrastructure development in Indonesia which is synchronized with the principles of infrastructure for all level of society and sustainable development Well Developed Region Developing Region Newly Developing Region 7

Road Status in Indonesia National Road Arterial Primary and Collector 1 which connected between capital of province, Strategic National and Toll Road.

district/urban and strategic provincial Road.

8 Road Status in Indonesia National Road Arterial Primary and Collector 1 which connected between capital of province, Strategic National and Toll Road. The Financing institution: Directorate General of Highways Provincial Road Collector 1 Road which connected between capital of province and capital of district /urban or between capital of district/urban and strategic provincial Road. Responsible and financing institutions: Provincial Road District Road Local road within Primary System connect capital of district with capital of subdistrict, within capital of subdistrict, between capital of district with Central of Local Activity, and district strategic road. Responsibles and Financing institutions: Bupati/regent/ Urban Road Secondary Road which conne3ct within urban area, central activity to Persil, and connected with housing. Responstibles and financing institutions: Mayor Village Road Road which connect housing area or within housing in the village and also neigbourhood. Responsible and Financing institution: Regency, Ministry of Public Works, Ministry of Less Develop Area, Ministry of Home Affairs, Agency for Border Development 8

District Responsibility, but the financing is rarely available, it has to be born by

9 Definition of Rural road Rural road is pointing out the District Road which is financed and look after by District Government Althought Village road is under the District Responsibility, but the financing is rarely available, it has to be born by villagers still not sustainable The most advanced province deal with village road is Bali island.

Primary Road Network System Urban NCA RCA LCA NbCA Persil STCA Int Airport Medium Airport Small Airport Intl airport Medium Airportl Small Airport SNA SPA SDA PKN AP AP CP JLP Nb.

10 Primary Road Network System Urban NCA RCA LCA NbCA Persil STCA Int Airport Medium Airport Small Airport Intl airport Medium Airportl Small Airport SNA SPA SDA PKN AP AP CP JLP Nb.P SN AP AP --- AP AP --- SN PKW AP CP: CP JLP Nb P SN AP AP SP AP AP SP SN SP --- PKL CP CP CP JLP Nb.P SN SD SK SK PKLing CPP CP CP JLP NbP Persil NbP NbP NbP NbP NbP PKSN SN SN SN SN Bandara Utama Bandara Pengumpul Bandara Pengumpan Pelabuhan Utama Pelabuhan Pengumpul Pelabuhan Pengumpan AP AP AP AP SP SK Capital of province AP AP AP AP Capital of District/urban --- SP SK KSN SN SN CP-1 CP-2 CP-3 CP-4 Capital Province Capital District/urban Capital District Capital of sub district KSP --- SP KSK JSK

11 Road Development in Indonesia 1965= , , , , , ,000 Nasional (Km) Provinsi (Km) Kabupaten/Kota (Km Tol (Km) 100,000 50,000 -

COMPARISON OF SIZE OF AREA, TOTAL POPULATION, TOTAL ROAD LENGTH AND NUMBER OF VEHICLES The largest five islands are Sumatra, Java, Sulawesi, Kalimantan, and Irian Jaya or Papua.

12 COMPARISON OF SIZE OF AREA, TOTAL POPULATION, TOTAL ROAD LENGTH AND NUMBER OF VEHICLES The largest five islands are Sumatra, Java, Sulawesi, Kalimantan, and Irian Jaya or Papua. The total population of Indonesia in 2008 was estimated at million, which is one of the most populous countries in the world. The most densely populated island is Java, about 60% of the total population. 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Sumatera Jawa Bali & NT Kalimantan Sulawesi Maluku & Papua Size of Area 20.6% 7.2% 4.1% 32.3% 10.8% 25.0% Total Population 21.2% 58.6% 5.3% 5.6% 7.3% 2.0% Total Road Length 33.8% 26.8% 9.8% 9.1% 14.2% 6.3% Numbers of Vehicle 17.9% 65.0% 5.9% 6.0% 4.2% 1.0%

13 FACT AND FIGURES Status LENGTH (KM) Length asphalt (%) Asset Value % of GDP Stable Condition Non Stable Condition NaTional 38, Province 48, , District/urban 384, , Jakarta 6, Toll Total 477,

14 Issues in Road (National Road): Lack of Road Capacity Condition : The low road capacity than demand shown from traffic congestion and travel time are still high for a road through the main

14 14 Issues in Road (National Road): Lack of Road Capacity Condition : The low road capacity than demand shown from traffic congestion and travel time are still high for a road through the main corridors MP3EI, reaching 26 hours in the corridors of Java, more than 2 days in the corridors of Sumatra, Sulawesi, Bali - Nusa Tenggara and, and more than 3 days in the corridors of Borneo and Kep. Maluku - Papua. Path length ratio to population is low and relatively underdeveloped compared with neighboring countries ( for example the motorway density Indonesia less than 1/10 Malaysia, China and the Philippines ). problems : The development of national roads have been less priority on building new roads. Land acquisition problems that hinder the development of toll roads either by the Government or through PPP Less than optimal development of alternative modes of transport ( multimodal transport ) so that the movement of people and goods is still too dependent on highway mode. Target : Development of a new road which includes national roads, toll roads and local roads along the 6,000 km by the end of Policy Direction : Development of a national backbone network systems and construction of new roads such as national roads, highways and regional roads in the backbone network system. Fulfillment provision of funds for land acquisition in accordance with Law. Improving the effectiveness of the PPP and the assignment of SOEs in the construction of toll roads Multimodal transportation policy development and encourage the role of rail and ferry modes. Funding Needs : Financing needs of Rp trillion during the period 2015 to 2019 for the construction of new roads along 6,000 km.

15 Issues in Road: Gap between National Road and Regional Road Target 2015-2019 : Conditions : In 2010 the national road with a length of 38 570 km has reached steady state by 86 %, while local roads

15 15 Issues in Road: Gap between National Road and Regional Road Target : Conditions : In 2010 the national road with a length of km has reached steady state by 86 %, while local roads with a length of km reached steady state by 63 % for provincial roads and 43 % for road district / city. This leads to an overall poor quality of roads, ie steady state only by 54 %. Meanwhile, other developing countries on average had reached steady state by 70 %. This explains the low power ratings Indonesian road infrastructure globally. Tension between national roads and local roads contribute to high travel time and logistics costs problems : Local fiscal capacity is relatively low and the lack of local government support in the maintenance of roads. Not optimal DAK role in supporting the local road funding and there is no alternative other significant funding to improve the quality of regional roads. Development of a new road the which includes national roads, toll roads and local roads along the 6,000 km by the end of Policy Direction: Development of a national backbone network systems and construction of new roads such as national roads, highways and regional roads in the backbone network system. Fulfillment provision of funds for land acquisition in accordance with Law. Improving the effectiveness of the PPP and the assignment of SOES in the construction of toll roads Multimodal transportation policy development and Encourage the role of rail and ferry modes. Funding Needs : Financing needs of Rp trillion during the period 2015 to 2019 for the construction of new roads along 6,000 km. Target : Average steady state by 80 % provincial roads and paths District / City sebesar60 % at year end Policy Direction : Development and implementation of cost-sharing schemes in financing road maintenance areas involving national budget contributions and grants greater regional roads are strategic The application of road fund for road maintenance Increased regional road management coaching with the pattern of incentives Funding Needs : Treatment of Km road area of Rp.200, 0 Trillion during the period

Issues and challenges in Rural Road (1) Rural Road is the majority of indonesian road network around 80% of the total network and the condition is 57% not stable.

16 Issues and challenges in Rural Road (1) Rural Road is the majority of indonesian road network around 80% of the total network and the condition is 57% not stable. Constraint funding from Government, since decentralisation the local government should pay their local road, while the contribution of central government towards the local road maintenance is not enough to maintain the Road Road Maintenance for Rural road is only about < ½ of needed maintenance, road deteriorated fast

Issues and challenges of rural road (2) Rural Road Village Road now although has

by Ministry of Less Development Area, and partly in the border area, facilitated

Since 2012, under the Directorate General of Highways, government setting up

17 Issues and challenges of rural road (2) Rural Road Village Road now although has to be finance by District, since district has limited capacity, funding partly by Ministry of Less Development Area, and partly in the border area, facilitated by Agency of Border Road. Since 2012, under the Directorate General of Highways, government setting up PRIM Project (Grant from Ausralia-Indii) setting up Provincial Road Improvement and Maintenance pilot project in NTB (Nusa Tenggara Barat)

18 Issues and Challenges of Rural Road (3) The total amount of PRIM around Rp. 1 trilion (60% from Local Government and 40% from AUSAID) PRIMS will only limited to Provincial Road and have to be financed by the local government first, reimbursed maximum 40% by AUSAID after fulfill the Specification in the contract The Government will encourage the follow up of the Pilot Project and will extend to several provinces before implemented national wide

19 References AUSAID, 2012, Modernising the National Road Network: A Planning framework to improve connectivity and development Government of Indonesia,2013, The Policy and Strategies of Road (Earliest Draft) ILO, 2007, Sustaining the benefit of Improved access ADB, 2006, When do Rural Road s benefit poor and how Government of India, 2011, Working Group on rural roads in the 12 th five year policy

COORDINATING MINISTRY FOR ECONOMIC AFFAIRS REPUBLIC OF INDONESIA. Musdhalifah Machmud Assistant Deputy of Plantation and Horticulture

COORDINATING MINISTRY FOR ECONOMIC AFFAIRS REPUBLIC OF INDONESIA Musdhalifah Machmud Assistant Deputy of Plantation and Horticulture Indonesia 2014 9 th April 2014 Legislative Election 9 th July 2014 Presidential