RESTRUCTURING INDONESIAN RAILWAY – INTEGRATION OR SEPARATION
Abstract: Law No. 23/2007 on
Railways is opening the option for private sector or Local Government to be
involved in railways. This study investigated experiences from other countries
in railway restructuring especially their measures and model of
restructuration. The countries investigated are Germany, Japan, Britain, and
Sweden. After investigating restructuration experiences from other countries
and looking on Indonesian railway condition, the study developed two approach
of restructuration.
The first approach of restructuration was using vertical separation
model. The approach has advantages of: eliminating potential discrimination
from the current holding company, increase the transparency in railway fund
management, and more competitive market. The disadvantages were the high
transaction costs, a need for monitoring of the other’s performance, the difficulty
in creating complex performance schedules. The second approach was using the
integration model. It has advantages of lower transaction cost, easy to manage
path allocation, and efficient scheduled design. The disadvantages were the
misuse railway fund allocation, also potential discrimination to the new
entrants.
The study found that the separation model is still the best approach for
restructuring Indonesian railway but if looking at the Indonesian railway
current condition with its problem of backlog assets it would be better that
the separation approach is used in the development of railway in other islands.
Penulis: Utut Widyanto, Siti
Malkhamah
Joural Code: jptsipilgg130025
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