Bogor – Cawang Lrt

PT. HUTAMA KARYA (PERSERO) PT. MULTI CITRA HARAPAN PT. MCH BANYU ARTHA

PT. PRAYOGA PERTAMBANGAN DAN ENERGI

PROJECT PROFILE BOGOR – CAWANG LRT

JAKARTA, JULY 2014

CONTENTS

I. Background, Goal and Benefits, 2 I.1. Background, 2 I.2. Goal, 2 I.3. Benefits, 3

II. Overview of Public Transportation in Jabotabek, 3 II.1. Jagorawi Tollroad, 7 II.2. Traffics On Jagorawi, 9 II.3. Jagorawi Toll Tariff, 10

III. Technical Aspect of Intermoda Transportation Development, 11 III.1. Cawang Interchange, 12 III.2. Integrated Mass Transportation, 14 III.3. Route Of Bogor-Cawang LRT, 15 III.4. Implementation Methodology, 17 III.5. LRT In Japan-An Experience, 20

IV. Financial Aspect, 20

V. Legal Aspect, 24

VI. Conclusion, 27

BOGOR – CAWANG LIGHT RAIL TRAIN (LRT) MASS TRANSPORTATION

I. BACKGROUND, GOAL AND BENEFITS

I.1. BACKGROUND

Indonesia is an archipelago with some 17,000 islands, inhabited and uninhabited. It is a country with various races, with quite different cultures. The total population is around 240 million people, with the growth of 1.49% p.a. Around 60% of the population live on Java island. Big cities are on Java island such as Jakarta, the Capital City, Bandung, Semarang and Surabaya. Indonesia is a developing country with the average economic growth of 5.73% p.a. during the last decade.

Jakarta, the Capital City of Indonesia which only has the acreage of 730 Km2 is densely populated by 9.7 million people at night and 13.3 million people by day, because some 3.67 million people live in the outside of Jakarta but work to earn their own living in the Capital City by day. The 3.67 million commuter people live in the nearby districts like Bogor, Depok, Tangerang or Bekasi, so that the larger-integrated Jakarta is called Jabodetabek (Jakarta, Bogor, Depok, Tangerang and Bekasi). Bogor and Depok are south of Jakarta, Bekasi is east of Jakarta and Tangerang is west of Jakarta. From Jakarta to these districts toll roads are already in place. Being the first toll road, the Jakarta-Bogor-Ciawi (Jagorawi) toll road has the widest Right- of-Way Area (RoW), more than 100 M wide in some parts.

To help ease the movement of people to and from Jakarta, in this case Jakarta- Bogor v.v., it is planned to introduce a new concept of transportation. So far, people move to and from Jakarta by means of automobiles, motor cycles and public transportation like buses and trains. This creates more traffic jams in the Capital City. The new concept of transportation is to move the people, not the transportation means. This new transportation is in the form of Light Rail Train (LRT). This new transportation will help save the consumption of fuel oil and on the other hand air pollution can be mitigated. Based on rough calculation, this will save more than Rp2 trillion in transportation cost annually. Furthermore, the construction of LRT can optimize the need for land, because it can be elevated and can be constructed along the existing road or toll rod like the Jagorawi.

I.2. GOAL

 The goal of the building of LRT is to fulfill the needs for an integrated transportation means for the larger Jakarta, especially which is in electricity- based.  It is to reduce traffic jams and all at once reduce economic loss in the form of saving of transportation costs.

 To help change the consumption of fuel oil to the consumption of electricity.  To help reduce air pollution.

I.3. BENEFITS

 The mass and integrated transportation mean of LRT will constitute an alternative to the existing public transportation means like buses, trains, owned-automobiles and motor cycles.  Time saving and fuel oil saving will be enjoyed due to more fluent flow of traffic.  LRT is electricity-powered so that it is environmentally friendly and it will help reduce air pollution.  LRT will help boost the economic growth, efficiency and minimize capital flight.  Toll road, i.e. the Jagorawi, on which the LRT will be operated can then serve not only automobiles but also those who are moving on the LRT.  LRT will help develop the national electricity industry in line with the development of electricity-based transportation industry.

II. OVERVIEW OF URBAN PUBLIC TRANSPORTATION

The caption below is showing a sample of urban traffic and transportation condition in Jabodetabek.

City conditions

Queue of traffic Public transport on toll roads Flood

Traffic jams

Road side vendors (PKL) Polices

Source : seminar Transportasi 27/6/12

Clockwise: 1. Traffic congestions happen in many places in Jabodetabek, even on toll roads. Many years ago, traffic jams happened only before the entrance gates leaving

Jakarta, after office hour, and before the entrance gates entering Jakarta in the morning. Vehicles on toll roads are queuing for toll transactions. Now, however, traffic flow on toll roads are not fluent. Traffic jams on toll road very often happen especially when there is accident. 2. Being on the seashore and being with heavy rains, Jakarta is often flooded. As floods come in one part of the city, traffic jams happen and hindering the traffic flow in the neighboring areas. 3. One kind of urban public transportation means, “Mikrolet” minibuses are crowded inefficiently. 4. Traffic polices should work hard to help make fluent traffic flows. 5. Heavy traffic on the roads as well as toll roads, happen from 7:00 in the morning until 20:00 or even later during the night. 6. The road-side vendors make the roadway narrower.

The following caption tells us the transportation condition in Jabodetabek, that the length of roads does not comparable with the number of motor vehicles, so that traffic jams often happen in many parts of the city.

 Number of motor vehicles in Jakarta is 9.8 million units in 2011. The growth of the population is 700.000 unit or growth of over 7% p.a.  The length of roads in Jakarta is only 26.400 Km, and the growth is 2% p.a. The growth of the number of vehicles is higher than the growth of the length of roads, it means that traffic density is getting crowded and traffic jams will be more severe.  The mobility of men and goods that represent the economic activity is high.  There have been no integrated public transports terminals available.

 Traffic jams of over 5 Km/day happen on toll roads.  Railway transportation is over loaded

Three measures that maybe taken in the efforts to overcome traffic jams are as follows: 1. Developing mass transportation like Mass Rapid Transit (MRT), the bus way, and others. 2. Limitation of traffic such as ERP. 3. Enhancing the capacity of roads network.

The following two captions are indicating how busy and how crowded the city is.

As offices, factories and economic activities are centralized in Jakarta, a great number of people from Tangerang (west), Bekasi (east) and Depok/Bogor (south) areas come to work in Jakarta. They move out from their homes to Jakarta in the morning and leaving for home from Jakarta after office hour. Therefore, Jakarta is densely populated by 13,281,433 people by day, consisting of the Jakarta population of 9,607,000 (72.33%) and a number of 3,674,433 people (27.67%) of commuter people consisting of 1,158,486 from Tangerang, 1,330,544 from Bekasi and 1,185,403 from Depok/Bogor. The number of 3,674,433 people working in Jakarta prefer to live outside Jakarta due to many reasons. They move to and from Jakarta using motor cycles, owned automobiles and public transportations.

Over 3 million people living outside Jakarta are working in Jakarta so that every day they are moving into, usually in the morning, and leaving the city usually after office hour. The high activity also adds up to the crowds of vehicles in Jakarta, even all day long from 7:00 o’clock in the morning to 20:00 o’clock at night or even later. It is said that the population of Jakarta is 13.2 million by day and 9.6 million at night.

The number of motor vehicles making trips in Jakarta is 9,895,568 units comprising 7,979,833 units (80.64%) Jakarta, 1,915,585 units (19.36%) Bodetabek vehicles. A number of 422,778 (71%) motor cycles, 160,655 (27%) automobiles and 12,002 (2%) urban transportation means are making trip between Depok/Bogor – Jakarta v.v.

From the 2 captions above, it is seen that a number of 3,674,433 people are transported by a number of 1,915,585 motor vehicles. It means that the average of less than 2 people for one motor vehicle. It is in efficient. In addition the use of public transportation is only 2%.

LRT mass Transportation needs to be introduced in order to reduce the number of vehicles making trips in Jakarta. The goal of the LRT Mass Transportation is to change the paradigm of moving motor vehicles to Jakarta from the surrounding areas to moving the people by means of LRT mass transportation. People from surrounding areas of Jakarta who want to go to Jakarta may park their vehicles before taking the LRT. Therefore, parking grounds should be provided near to the LRT terminals.

The operation of LRT is expected to save fuel oil consumption of Rp10.7 trillion p.a., saving in time value of Rp9.77 trillion p.a. and saving vehicle operation cost of Rp1.9 trillion p.a.

II.1. JAGORAWI TOLL ROAD

Jagorawi toll road is the toll road along which the Phase I of the Bogor - Cawang light rail mass transportation is planned to be constructed.

Jagorawi is the shorten of the words Jakarta, Bogor and Ciawi. The Jagorawi toll road links the capital city of Jakarta to Bogor and Ciawi in the south. It is the first toll road in Indonesia. The construction started in 1973 and a part of 27 Km was completed in 1978, and in 1979 the Jagorawi of 50 Km long was completed. As it was completed, the Government of Indonesia established a state-owned company to operate the Jagorawi as a toll road. It was on March 1, 1978. The state-owned company was named PT Jasa Marga (Persero). It was the only legal body, a corporation, which was assigned by the government to develop toll road in Indonesia.

Jagorawi toll road is 50 Km long. Being the first toll road, it has the widest right of way (R.o.W) area, some parts are more than 100 meters wide. It links Jakarta and Bogor. Bogor is a municipal city. It is a busy city. Being not so far from the capital city, many people working in Jakarta like to live in Bogor which is much nicer than living in Jakarta. In such a condition, many people go to and from Jakarta-Bogor every day. In the morning they go to Jakarta to work and after office hour they leave Jakarta. There are really at least three passages between Jakarta and Bogor, i.e the existing Jakarta-Bogor road and the other one passing Parung, and still another one is the Jagorawi toll road. The three roads are always busy.

Jagorawi is made 2 x 3 lanes and getting near to Jakarta it is 2 x 4 lanes. Jagorawi used to be 2 x 2 lanes, with a 10 meter wide median, inner shoulder of 1.5 meter, outer hard shoulder of 3.75 meter. Each lane is 3.75 meter wide, while the width of the lanes in other toll roads is only 3.25 meter to 3.5 meter. Jagorawi is at grade. It is with flexible pavement. It is the highest quality toll road compared to the others. Along the Jagorawi there is now no median area which may be enough for pier construction. However, it has very wide right of way area on both sides.

Development growth along the toll road corridor has increased with the construction of industrial and residential estates, golf courses, Sentul motor racing circuit, hotels and other facilities. To anticipate this growth, additional entry and exit ramps have been constructed to allow fluent access to and from the toll road. The Cibubur ramps were opened in 1981allowing access to and from the Cibubur scout camping ground and the Cisalak area. On October 20, 1990 the Dukuh ramp was opened giving access to the south west of Jakarta (Pasar Minggu, Cijantung, Ragunan and other areas). The Pasar Rebo ramp was opened after that. The Kranggan ramp was opened in 1997. Now, the Jagorawi is also connected to and from the Jakarta Outer Ring Road or JORR, toll road with a very heavy traffic.

Jakarta expansion is inevitable and has now spread to buffer zones to the south (Depok, Cibinong and to some parts of Bogor area). Traffic density on Jagorawi has

8 been increasing as mobility increases not only to Jakarta but also to the buffer zones, so that many interchanges and ramps have been constructed to meet the demand. The Gunung Putri interchange linking Jakarta, Bogor and Gunung Putri was constructed in 3 phases, the first and the second phases by PT Indocement Tunggal Perkasa. PT Indocement is a cement producer in Gunung Putri area. The third phase was constructed by PT Lembah Golf Jagorawi.

Many corporations have built factories and offices along the Jagorawi corridor to run their activities. Many residential estates have also been built. The Esmeralda, Lembah Golf, Cibubur, Cikeas and many other elite residential estates along the Jagorawi were built. These residential estates use the Jagorawi for their access.

Now, after more than 30 years, the Jagorawi has become the forerunner for the construction of other toll roads in Indonesia. This first Indonesia’s toll road has had a major influence on social condition to the communities living along the corridor.

In the near future, another toll road linking to Jagorawi will be constructed, i.e Ciawi- Sukabumi toll road. It is now still in progress of land acquisition. The corridor of Ciawi-Sukabumi is now already with high traffic. One segment of the Cinere- Jagorawi, a section of Jakarta Outer Ring Road II (JORR II) is already in operation and the other two segments are still undergoing construction and in progress of land acquisition. Another one section of JORR II that will be connected to Jagorawi will be constructed, i.e., the Cimanggis – Cibitung.

The following is the map of Jagorawi toll road as it was in 1999, when the JORR I and JORR II (Cinere-Jagorawi) had not yet been opened. It is along the Jagorawi toll road that the phase I of LRT of 51 Km is planned to be constructed.

II.2. TRAFFICS ON JAGORAWI

Vehicle category in toll road is as follows:

Category I Sedan, jeep, minibus, bus and small truck Category II Heavy truck with 2 shafts Category III Heavy truck with 3 shafts Category IV Heavy truck with 4 shafts Category V Heavy truck with 5 shafts or more Category VI Motor cycle (in Bali Toll road and Suramadu bridge only)

The following table shows the growth of traffic volume of Jagorawi toll road since the opening in 1978 to the present.

Toll rate of the Jagorawi toll road is shown in the following table.

II.3. JAGORAWI TOLL TARIFF

Pursuant to Letter of Decision of the Minister of Public Works No.277/PRT/M/2011 the Jagorawi toll road applies open system operation for on/off ramps between Jakarta I/C to Pasar Rebo-Cibubur-Cimanggis. Being open system operation, the toll fare is flat, different based on the vehicle categories only.

Toll fares based on open system operation are as follows:

Category 1 Rp 2.000 Category 2 Rp 3.500 Category 3 Rp 4.000 Category 4 Rp 5.000 Category 5 Rp 6.000

Based on closed system operation, toll fare is differentiated based on the vehicle categories as well as the trip length.

Toll fares based on closed system operation for the longest trip are as follows: Categoriy 1 Rp 7.000 Category 2 Rp 8.500 Category 3 Rp 12.000 Category 4 Rp 15.500 Category 5 Rp 18.500

The Jagorawi toll rate per Km are as follows (2014): Category 1 Rp 152 Category 2 Rp 174 Categoriy 3 Rp 261 Categoriy 4 Rp 337 Category 5 Rp 402 Average toll rate/Km Rp 265

The average toll rate of Jagorawi is made lower considering that the toll has been operated since 1978, while taking into account that the investment has enjoyed a high return, so that the toll revenue is needed only for operation and maintenance expenses.

For the newly opened toll roads, the toll rates are much higher. For example the average toll rate for Semarang-Solo is Rp 500 Per Km; and the average toll rate of Bali toll is Rp.1.000 Per Km for category 1. The determination of the initial toll rate, i.e when the toll road is opened is based on 1). Willingness to pay (WTP) and Affordability to Pay (ATP); 2).Saving of Vehicle Operation Costs (SVOC) while taking into account of the 3).Viability of the investment (Government Regulation no. 15/2005). The WTP and ATP can be used as a comparison data to estimate the tariff for rail way (in the financial projection, the rail way tariff is assumed to be Rp 500.per Km) .

Note: Pursuant to Government Regulation No. 15 of 2005, toll tariff adjustment is made once in every two years based on inflation rate. Toll rate is rounded to the nearest Rp500.00.

III. TECHNICAL ASPECT OF THE DEVELOPMENT OF INTERMODA TRANSPORTATION

All intermodal transportations using roads as well as rail way are still made at grade. In such a condition cross-sectional traffics, among vehicles, among trains as well as between vehicles and trains are inevitable. The cross-sectional traffics cause traffic jams even when traffic lights are already in place. According to toll road regulation, cross-section at the same grade is not allowed. In big cities like Jakarta for example flyovers are constructed in order to help traffic run fluently.

Based on technical analysis, it would be more beneficial when a transportation mode is made elevated. The construction cost will be lower because no land costs need to

12 be incurred or at least land cost can be minimized. Traffic flow will be more fluently because it is not hindered by cross-sections for other transportation routes.

The following captions illustrate the comparison between at grade and elevated transportation moda.

III.1. CAWANG INTERCHANGES

The Cawang interchanges constitute a node of different routes. There are interchanges with different directions, north-south and east-west. On the other side, on the existing roads (non toll roads), traffic are flowing towards the city and outward the city. In addition, the bus way also in place using the existing roads. In the future, when the time has come, an LRT terminal will be build also in Cawang, which constitutes the starting point of the train leaving for Bogor and as a destination point of the train coming from Bogor. In the next phase, according to the LRT plan, the Cawang train terminal will be connected to the LRT route from Bekasi in the east to Tangerang in the west of the city. Therefore the development of the Bogor-Cawang LRT should be anticipated to be integrated to various transportation moda in the city (busway, city transportation means, commuter traffic and LRT).

The following is the design-concept of the Cawang LRT terminal.

III.2. INTEGRATED MASS TRANSPORTATION

Pursuant to Law no. 23 of 2007 concerning railway, the railway principles are as follows:

 Railway constitutes an integral part of the national transportation moda;

 The goal of railway is to help fluent flow of mass movement of men and goods;

 Railway system should be made integrated with other transportation moda.

Railway business comprises construction, operation and maintenance and other related railway businesses. The scope of railway business comprises the building of the railway infrastructure and the acquisition of the railway facilities.

The construction of the railway infrastructures among others consists of the construction of the railway lanes, railway terminals and other operation-supporting facilities. The acquisition of trains consists of the acquisition of locomotive (?), train, coaches, and other specific equipments for the train.

The integration of various transportation moda in Jakarta among busway, various city transportation means and railway ease the movement of men to different destinations. The high mobility of passengers in the transit points will constitute feeders to the LRT. In order to enhance the function as a feeder an innovation is

15 needed, that is the Transit Oriented Development (TOD). It is the use of a location for the integration of various simultaneous transits, that will force the users of owned- cars to exchange to use public transports. TOD will end to a more fluent traffic flow, safety and enjoyment for the users of public transports especially the LRT because the terminal is neatly arranged, safe and wide parking ground is available. This condition will be beneficial to the LRT operator because more and more passengers exchange from using owned-cars to LRT.

The following captions show the planned train transit terminals connecting Bekasi (east) to the airport (west) and train transit terminals connecting of Cawang (north) to Bogor (south). The Cawang train terminal will become the node of mass transportation means, trains, busways and various other city transportation means. Therefore, the development of various mass transportation moda will increase the number of LRT passengers.

The train terminals for the Bekasi-Bandara Sukarno Hatta airport route are the Tambun, Bekasi West, Cawang, Bekasi and Semanggi terminals.

The train terminals for the Cawang-Bogor route are Cawang, Kampung Rambutan, Cibubur, Sentul and Bogor terminals. In the future, it is planned that the railway of Cawang-Bogor will be extended towards Ciawi up to Puncak (Gunung Mas).

III.3. ROUTE OF BOGOR-CAWANG LRT . As described above, the development of elevated mass transportation moda is maximizing the use of land and minimizing investment costs for the mass transportation facilities. It is because of the use of land vertically. The right of way area (RoW) of the Jagorawi toll road is more than 60M, wider than the normal requirement for toll road. The existence of the LRT piers will not affect to the toll road operation. Even the activities during the construction of piers for the LRT on the RoW will not seriously affect the toll road operation. The LRT lane will be made parallel with the Jagorawi toll road. The LRT railroad will be laid on the right hand side, left hand side, or on the median of the toll road depends on the result of the survey.while taking into account of the benefit to the viability of the LRT investment

III.4. IMPLEMENTATION METHODOLOGY

There are three alternatives of the construction of the LRT railroad, on the right hand side, on the left hand side on the median of the Jagorawi. Whether is laid on the right hand side or on the left hand side or on the median it will not be a serious problem regarding side. If it is built on the median, however, a thorough traffic management need to be applied.

Implementation technology for the construction on the median is as follows: o Traffics Management o Removal and Relocation o Earth Works o Foundation Works o Column/pier Construction o Pierhead Construction o Gilder Production o Flat Deck Production o Rail Production o M/E Installation

Phases of the project activities consists of :

 Pre Construction Phase  Coordination with related institution  MOU with related insitution for Pre FS  Pre Fes, Master Plan and Business Plan  MOU for Joint Venture Establishment  FS and Permits

 Construction Phase  To anticipate the narrowing of toll road lane, pierhead construction by “Sosrobahu”  Relocation of toll road facilities (lightings, drainage, electricity etc.)  Bogor- Cawang LRT is priority project

 Operating Phase Operating by JV Company

Traffics Management o To minimize traffics jam caused by avtivities of the project, spot by spot implementation, every 300 meters, consisting of 4 column 3 span. Length of spn 300 meters. o Operation of one lane on each direction during implementation and all lanes will be operated following the completion. o Placement of traffics signs indicating project activities underway. o As one spot completed move to next spot

The word SOSROBAHU is formed or consists of the word SOSRO and the word BAHU. SOSRO means thousand (Old Javanese word) and BAHU means shoulder, thus it means “thousand of shoulders”. It means a very strong power. It was invented by Dr. Ir. Tjokorda Raka Sukawati, an engineer of PT Hutama Karya. Sosrobahu technology was introduced/innovated in the construction of North-South Link, a section of the Jakarta Intra Urban Tollway (JIUT), running from Cawang in the south to Tanjung Priok in the northern part of the Capital city.

The existing roads (Jl. Jenderal Ahmad Yani and Jl. Jenderal Panjaitan) running from Cawang to Tanjung Priok are located along a busy part of the city. These two roads were already with a very heavy traffic when the N-S L elevated toll road was constructed in 1990s. In order to minimized traffic hindrances and traffic jams on the existing roads during the construction, the Sosrobahu technology was introduced. The construction of the pier head, if it was made across the existing road as it should be, will cause serious traffic jams. Thus the pier heads were firstly constructed in line with the existing roads. As one pier head (of over 150 tons) has completed its curing time (after 28 days) the pier head was turned around easily to be in the position across the existing road by means of one or just two cranes to the right position across and above the existing road.

III.5. LRT IN JAPAN – AN EXPERIENCE

Japan has developed LRT as transportation mean since 1981

The following caption shows operation activities of some LRTs in Japan.

IV. FINANCIAL ASPECT

The investment of the Bogor – Cawang LRT is undertaken on a business to business based financing.

It is a project financing. The project should be able to finance by itself. The revenues from the operation of the LRT should be sufficient to finance the operation and maintenance (OM) expenses, to pay interests of the loans, to repay the debt principles, and to give a certain return of and on investment.

The capital investment comprises Debts and Equity. As in toll road investment, the Debts to Equity Ratio (DER) 70:30. Like financial analysis for toll road investment,

22 the LRT investment is made with the same parameters, i.e. IRR, NPV, and Pay-Back Period.

The assumptions of the rough calculation based on the experiences of LRT operation are as described in the following tables:

System Loading Capacity

Large Size Train Loading Capacity (Passengers per hour per direction) End/Head Headway Headway Headway No. of Trains Operation Time Middle Train 6 - Train 8- Train Train 4 (menit) 6 (menit) 10 (menit) (per hour) 1 Trip train (per hour) 1 Trip train (per hour) 05.30 am - 06.30 am 103 117 V 6 674 4.044 908 5.448 06.30 am - 07.30 am 140 159 V 10 916 9.160 1234 12.340 07.30 am - 08.30 am 177 201 V 15 1158 17.370 1560 23.400 08.30 am - 09.30 am 140 159 V 15 916 13.740 1234 18.510 09.30 am - 10.30 am 103 117 V 10 674 6.740 908 9.080 10.30 am - 11.30 am 103 117 V 10 674 6.740 908 9.080 11.30 am - 12.30 pm 103 117 V 6 674 4.044 908 5.448 12.30 pm - 01.30 pm 103 117 V 6 674 4.044 908 5.448 01.30 pm - 02.30 pm 103 117 V 6 674 4.044 908 5.448 02.30 pm - 03.30 pm 103 117 V 10 674 6.740 908 9.080 03.30 pm - 04.30 pm 140 159 V 15 916 13.740 1234 18.510 04.30 pm - 05.30 pm 177 201 V 15 1158 17.370 1560 23.400 05.30 pm - 06.30 pm 140 159 V 15 916 13.740 1234 18.510 06.30 pm - 07.30 pm 140 159 V 10 916 9.160 1234 12.340 07.30 pm - 08.30 pm 103 117 V 10 674 6.740 908 9.080 08.30 pm - 09.30 pm 103 117 V 10 674 6.740 908 9.080 TOTAL Passenger 169 144.156 194.202

DECREASE IN NUMBER OF CAR USERS Details Unit 6 Coaches 8 Coaches Number of Passengers man 51,054 68,778 Passengers/hour man 10,211 13,756

Cars/day unit 196,000 196,000 Cars/hour unit 19,600 19,600

Number of Passenger/car man 2 2 Number of car users man 39,200 39,200

Decrease in car users 26% 35%

The operation of LRT is expected to reduce number of motor vehicles making trips from Bogor to Jakarta by 26% to 35%

ASUMPTION

COST PER UNIT TOTAL COST NO. INVESTMENT VOLUME (Bil. Rp) (Bil. Rp) 1 Flyover Structure 51 km 200 Per km 10.200 2 Railway 108 km 0,5 Per km 54 3 Train Carriage 108 Unit 18 Per Unit 1.944 4 Train Station 240 - Main 2 Unit 50 Per Unit 100 - Shelter 7 Unit 20 Per Unit 140 5 Insurance 1 LS 507 6 Others 1.281 - Railway Land Acquisition 300.000 m2 - Land Acquisition for Station 1 ha 50 Per Ha 50 - Land Acquisition for Depo 10 ha 6 Per Ha 60 - Main Depo 1 Unit 450 Per Unit 450 - Electrical 102 km 1 Per km 102 - Signaling & Telecomunication 9 Unit 1 Per Unit 9 - Relocation of Public Utilities 4 Unit 10 Per Unit 40 - Biaya Perijinan 1 LS 30 30 - Design & Engineering 1 LS 420 420 - AMDAL 1 LS 30 30 - Others 1 LS 90 90 7 IDC 12% 2.533 2.533 Total Investment 329 Per km 16.760

INVESTMENT Total Investment 51 km 16.760 Bil. Rp Equity (30%) 30% 5.028 Bil. Rp Loan (70%) 70% 11.732 Bil. Rp Interest 12% 1.408 Bil. Rp Concession Period 30 Year Loan Tenure 7 Year

ASUMPTION EARNING Earning from Feeder Train Ticket Price Rp.500,-/Km 25.500 Rp Number of Train Carriage 6 per set 36 Unit Maximum Passenger/Carriage 126 Passenger Total Passenger / Day 127.029 Passenger/Day Total Passenger / Year 45.730.440 Passenger/Year Earning / Year 1.166 Rp Bil. /Year

Growth Assumtions Predicted Increase of Ticketing / Year 6% Predicted Increase of Passenger / Year 10% Total Growth / Year 16%

COST - Operational Cost 10 Rp Bil. /Month - Way & Structure Maintenance 5 Rp Bil. /Month - Equipment Maintenance 7 Rp Bil. /Month - General Cost 4 Rp Bil. /Month - Power & Energy 7 Rp Bil. /Month Total Cost / Month 33 Rp Bil. /Month Total Cost / Year 396 Rp Bil. / Year

IDC INVESTMENT (for IDC Calculation) COST (in Bil. Rp) Total Investment Before Financing 51 km 14.226 Bil. Rp Equity (30%) 30% 4.268 Bil. Rp Loan (70%) 70% 9.958 Bil. Rp Interest 12% 1.195 Bil. Rp Concession Period 30 Year Loan Tenure 7 Year

IDC 1 Tahap 4 Tahap LOAN 9.958 Tahun I 1.195 11.153 Tahun II 1.338 12.492 IDC 2.533

ANALISIS FINANSIAL URBAN RAILWAY TRANSPORT (Bogor-Cawang 51 km) (in Billion Rp) Net Operating Profit Net Cash Flow Cash Flow Periods Sales Total Cost Depreciation EBIT ∑ CF After Tax (NCF) (CF) 0 0 0 (16.760) (16.760) 1 0 0 0 (16.760) 2 0 0 0 (16.760) 3 1.166 396 559 211 190 749 749 (16.011) 4 1.353 459 559 335 301 860 860 (15.151) 5 1.569 533 559 478 430 989 989 (14.162) 6 1.820 618 559 643 579 1.138 1.138 (13.024) 7 2.111 717 559 836 752 1.311 1.311 (11.714) 8 2.449 832 559 1.059 953 1.512 1.512 (10.202) 9 2.841 965 559 1.318 1.186 1.745 1.745 (8.457) 10 3.296 1.119 559 1.618 1.456 2.015 2.015 (6.443) 11 3.823 1.298 559 1.966 1.770 2.328 2.328 (4.114) 12 4.435 1.506 559 2.370 2.133 2.692 2.692 (1.423) 13 5.144 1.747 559 2.839 2.555 3.113 3.113 1.691 14 5.967 2.026 559 3.382 3.044 3.603 3.603 5.294 15 6.922 2.351 559 4.013 3.612 4.170 4.170 9.464 16 8.030 2.727 559 4.744 4.270 4.829 4.829 14.292 17 9.314 3.163 559 5.593 5.033 5.592 5.592 19.884 18 10.805 3.669 559 6.577 5.919 6.478 6.478 26.362 19 12.534 4.256 559 7.719 6.947 7.505 7.505 33.868 20 14.539 4.937 559 9.043 8.139 8.697 8.697 42.565 21 16.865 5.727 559 10.579 9.521 10.080 10.080 52.645 22 19.564 6.644 559 12.361 11.125 11.684 11.684 64.329 23 22.694 7.706 559 14.429 12.986 13.544 13.544 77.873 24 26.325 8.939 559 16.827 15.144 15.703 15.703 93.576 25 30.537 10.370 559 19.608 17.647 18.206 18.206 111.782 26 35.423 12.029 559 22.835 20.551 21.110 21.110 132.892 27 41.090 13.954 559 26.578 23.920 24.479 24.479 157.371 28 47.665 16.186 559 30.920 27.828 28.386 28.386 185.757 29 55.291 18.776 559 35.956 32.361 32.919 32.919 218.676 30 64.137 21.780 559 41.799 37.619 38.177 38.177 256.854 31 74.399 25.265 559 48.576 43.718 44.277 44.277 301.131 32 86.303 29.307 559 56.437 50.794 51.352 51.352 352.483 618.410 210.003 16.760 391.647 352.483 369.242 352.483 352.483 IRR 14,6% NET PRESENT VALUE (NPV) (Rp815,48) DISCOUNT RATE 15% PAYBACK PERIODS 13 BENEFIT COST RATIO 1,76

V. LEGAL ASPECT

INVESTMENT PROCESS FLOWCHART ON PUBLIC RAILWAY Law No. 23 0f 2007 Concerning Railway

Government Regulation No. 56 of 2009 Concerning Business of Railway Transportation and Presidential Regulation No. 13 of 2010 Concerning Amendment of Presidential No. 67 0f 2005 Concerning cooperation between the Government and State –Owned Enterprise.

RAILWAY TARIFF

• Manual for railway tariffs for men and goods are determined by the government • Manual for transportation tariff determination is based on capital investment, operation and maintenance expenses and return of the investment. • Tariff for passengers is determined by the Railway Operator based on the manual of the transportation tariff determination • Tariff for economic-class passengers and volunteer transportation is determined by the government/local administration • When the tariff for economic-class passengers determined by the government/local administration is lower than the tariff which is computed by the Railway Operator, the difference becomes the responsibility of the government/local administration in the form of public service responsibility

• When the operation costs incurred by the Railway Operator for the volunteer transportation is higher than the revenue based on the tariff determined by the

government/local administration, the difference becomes the responsibility of the government/local administration which constitutes subsidy for volunteer transportation.

PHASES(CYCLE) OF COOPERATION PROJECT IMPLEMENTATION INITIATED BY A CORPORATION

Phase of approval as Phase of Corporation Establishment Initiator Corporation

•4 : PJPK prepare for the establishment of corporation, Step 4 competitive and open • IA : Penyiapan Dolumen Konsep Proyek & Kualifikasi calon pemrakarsa (CP) • IB : PJPK mengevaluasi Dokumen Konsep Proyek • IC : PJPK menerbitkan surat persetujuan bagi CP untuk melanjutkan penyiapan Step 1 prastudi kelayakan •5A : Letter of Intent (LoI) Step 5 •5B : Corporation submits Letter of Intent

•6A : Pre Qualification (PQ) • 2A : BUCP melaksanakan penyelesaian prastudi kelayakan •6B : Corporation joins the PQ • 2B : PJPK mengevaluasi secara mendalam Dokumen Prastudii Kelayakan Step 6 • 2C : menerbitkan surat persetujuan bagi CP unmtuk melanjutkan penyiapan Step 2 studi kelayakan •7A : Submitting Bidding Doc. Step 7 •7B : Corp. passing the PQ and Submit Investment Proposal

• 3A : CP melaksanakan penyelesaian Dokumen Studi Kelayakan dan Pemenuhan Persyaratan Prakualifikasi • 3B : PJPK mengevaluasi secara mendalam Dokumen Studi Kelayakan dan •8A : Submitting Investment Proposal Dokumen Pemenuhan •8B : Submitting and Evaluation of Proposal Step 3 • 3C : PJPK menetapkan CP sebagai Badan Usaha pemrakarsa (BUP) dan Step 8 menetapkan kompensasi bagi BUP

•9A : Deciding the Winner – Option Bonus Value Step 9 •9B : Deciding the Winner- Opsi Right to Match.

•10 : Announcement of Winner Step 10

Sub Enclosure V : Regulation of State Minister PPN/ Chairman of Bappenas No. 3 of 2012 •11 . Preparation & Signing of the Cooperation Agreemnt Concerning Step 11 Guideline for the implementation of Cooperation with SOE in providing infrastructurs

INSTITUTIONS

Bekasi City Adm. Tangerang City Adm. Bogor City Adm. Jakarta City Adm. Bekasi Local Adm. Tangerang Local Adm. Bogor Local Adm.

Ministry of SOE

Ministry of PW INSTITUTIONS INTEGRATION Academic/Professional Ministry of AND Communications STAKEHOLDER NGO

PT. KA (Commmuter Jabotabek

Land Transport Org. Busway Operator Regular bus Operator MRT Operator (Organda)

Source : Seminar Transportasi 27/6/1235

PHASES (CYCLE) OF COOPERATION PROJECT IMPLEMENTATION

• Identification and selection Planning • Determination of Priority phase

• Initial study PFS Phase of • Study for Readiness of the Cooperation Project Project Preparation

• Completing PFS TRANSACTION • Establishment of Corporation (JV) PHASE

• Planning the management for the implementation of cooperation agreement Phase of Project Imple- • Management of the implementation of Cooperation agreement mentation Management

Sub Enclosure : Regulation of State Minister PPN/Chairman of Bappenas No. 3 of 2012 Concerning Gidelinefor the implementation of cooperation with SOE in providing infrastructurs

PHASES OF THE COOPERATION PROJECT IMLEMENTATION

Phase I Phase II Phase III Phase IV PERENCANAAN PROYEK KERJASAMA PERENCANAAN PROYEK KERJASAMA TRANSAKSI PROYEK KERJASAMA TRANSAKSI PROYEK KERJASAMA

. Planning of JV establishment . Plan and preparation of Planning the . Implementation Iidentification Priority ranking Pre Feasibility Study of the Completion of JV establishment implementation of JV and choice of of the Study (PFS) of the readyness of the Pre . JV establishment management of establishment the cooperation cooperation cooperation thecooperation Feasibility . Preparation and signing the cooperation . Preparation of project project project project Study the cooperation agreement the signing of agreement cooperation agreement Out Put : Out Put : Out Put : Financing Periodic report on Out Put : Out Put : Out Put : Doc. Of Cooperation procurement, EPC the List of priority project documentation Documentation of the preparation Documentatio agreement contract; implementation Initial Study of the cooperation project n of PFS Doc. Of agreement & Doc. Operation of PKL Of progress. contract management Process of allocation, disbursement supervision and control over Gov. Support Process for the application of Confirmation/Approval of and/or evaluation and control over the Government Support Gov. Support and/or Gov. implementation of the or Government Guarantee Guarantee guaranteoragreemnt and Regress agreement

ENVIRONTMENTAL STUDY (PJKP) ENVIRONMENTAL STUDY / BU

LAND ACQUISITION PROCESS

PARTICIPATION OF INSTITUTIONS

Responsible for the Cooperation Project PJPK, KKPI, BKPM, BAPPENAS, Ministry of Finance PJPK, KKPI, PPRF, BUPI, BKPM, PJPK, PPRF, BUPI, BKPM, BAPPENAS, KLH (BJPK) BAPPENAS (PPRF), BUPI, BPN, KLH) BAPPENAS, BPN

Public consultation: Public consultation: Public consultation : Descemination of information Consultative interaction Market study

VI. CONCLUSION

1. Developing elevated roads for automobiles cannot catch up with the growth of automobile population so that the development of eletricity-powered public transportation is needed. 2. The development of mass public transportation using electricity-powered trains constitutes a useful alternative which is within the reach of the financial capacity and beneficial to the public. 3. Using the right of way area of toll road means optimizing the function of toll roadthat creates value added to the toll road. 4. According to above mentioned financial analysis, the investment of elevated road for railway and bus way has a high feasibility . 5. Cinergy and cooperation among State-Owned Enterprise, private companies and Local Administration is a must under the scheme PPP (Public Private Partnership). 6. Construction methodology using Sosrobahu System will minimize hindrances to toll road operation.

7. The development of elevated road for electricity train feeder is expected to reduce traffic jams and support the national fuel oil saving program, bust the development of the national electricity industry and the electricity-based mass transportation industry.