PT Kereta Api Indonesia (KAI) and city-owned transportation company PT MRT Jakarta on Monday (12/09) have signed an agreement on the establishment of a joint venture company to manage transportation in Greater Jakarta - Photo: MRT Jakarta.

JAKARTA (TheInsiderStories) – Indonesian state-owned railway operator PT Kereta Api Indonesia (KAI) and city-owned transportation company PT MRT Jakarta have signed an agreement on the establishment of a joint venture company (JVC) to manage transportation in the Greater Jakarta. The cooperation is a follow up of President Joko Widodo’ direction to manage the integrated transportation mode by one authority.

The agreement was signed by KAI president director Edi Sukmoro and MRT Jakarta president director William Sabandar at City Hall, Central Jakarta, witnessed by Deputy State-Owned Enterprises (Soes) Minister Kartika Wirjoatmodjo and Jakarta Governor Anies Baswedan.

Previously, central government officials announced that public transportation in Greater Jakarta would be managed under one authority led by the Jakarta administration. The entity will manage public transportation-related aspects, including fares and routes.

The new entity will be 51 percent owned by MRT Jakarta and 49 percent by KAI, the parent company of commuter line operator PT Kereta Commuter Indonesia and airport train operator PT Railink.

“The SOEs is fully committed to supporting the integration of transportation in Jakarta,” said Wirjoatmodjo after the signing ceremonu on Monday (12/09)

He adding, the JVC will manage all railway stations and develop transit-oriented-development (TOD) planning at designated stations. With cooperation in managing stations and TOD, hopefully, Jakarta residents will be more interested in using public transportation within two or three years, added by the vice minister.

Speaking on the same occasion, Baswedan said the joint venture should improve the convenience of using public transportation, of which 1 million passengers use railway-based transportation and 980,000 use wheeled vehicles. He stated, “Hence, those who have been using rail-based transportation and wheeled-based transportation will enjoy the integration.”

Wirjoatmodjo said the JVC had yet to be named, but it was expected to be fully operational after a month of institutional preparation. Sabandar chimed in by saying the joint venture would spend its first three months preparing for integrated transportation and TOD management planning in the capital.

“We should see real results in the third and fourth quarters of next year,” he said while emphasized that integration would include connecting transportation infrastructure.

“Hence public transportation will be accessible from one mode to another. Passengers getting on and off the MRT, LRT, Transjakarta bus, commuter line, all will be connected,” Sabandar said.

The integration will not be limited to infrastructure, but also to ticketing, he added. The firm will conduct a study on the implementation of an integrated electronic fare collection system for public transportation modes in the capital.

MRT Jakarta recently received a permit from the Central Bank to issue its own multi-trip tickets. The tickets will be valid for all modes of public transportation in Jakarta by 2022. As a priority, however, Jakarta Transportation Agency head Syafrin Liputo said the firm would manage several stations considered the most hectic, such as Tanah Abang, Senen, Gondangdia, and Juanda, during its early periods of operation.

“Tanah Abang is congested with ride-hailing drivers, so that’s what we will arrange first,” he told reporters after the signing of the agreement.

Greater Jakarta daily passenger numbers increased exponentially from 47.5 million in 2015 to 88 million in 2018. The Jakarta administration has tried several ways to deal with extreme traffic congestion in the city, which is home to 10 million people at night and more than 14.5 million during the day.

The measures include the expansion of odd-even license plate traffic policy, the commercial operation of MRT Jakarta and LRT Jakarta starting April 1 and Dec. 1, respectively, and the expansion of the Transjakarta bus and public minivan routes.

The central government has agreed to assist the city administration in boosting its transportation sector through the development of infrastructure, which it refers to as urban regeneration. The projects consist of the MRT, the LRT, and the elevated loop line railway network development, along with the Transjakarta route expansion.

Written by Lexy Nantu, Email: