CHAPTER 1 INTRODUCTION 1.1 General Overview of Research Object 1.1.1 Light Rail Transit Figure 1.1 LRT Source : www.kabar3.com The Palembang Light Rail Transit (Palembang LRT) is an operational light rail transit system in Palembang, Indonesia which connects Sultan Mahmud Badaruddin II International Airport and Jakabaring Sports City. Starting construction in 2015, the project was built to facilitate the 2018 Asian Games and was completed in mid-2018, just a few months before the event. Costing Rp 10.9 trillion for construction, the system is the first operational light rail transit system in Indonesia, and utilizes trains made by local manufacturer PT.INKA. The system's only line has a total of 13 stations (6 operational). As Palembang was to host the 2018 Asian Games, the project was pushed to be completed before the event began. Groundbreaking for the project occurred on 1 November 2015, with state-owned company Waskita Karya being appointed as the primary contractor following the issuance of Presidential Regulation 116 of 2015 on Acceleration of Railway Train Operation in South Sumatera Province. The contract, which was signed in February 2017, was initially valued at Rp 12.5 trillion. Construction was scheduled for completion in February 2018, with commercial service beginning in May 2018. However, the completion date was moved to June 2018 with operations beginning in July, only one month before the Asian Games. A test run was done on 22 May 2018 and was inaugurated by President Joko Widodo on 15 July 2018. Operations for the LRT started on 1 August, several days before the Jakarta LRT began running, making it the first operational LRT system in the country. The final value of the contract was Rp 10.9 trillion (USD 755 million). The reduction in cost was due to a review by supervising consultants from SMEC International. Close to the start of the event, the trains often encountered operational issues. Waskita initially paid for the construction, with the government reimbursing the fees over a four-year period. As of August 2018, the service operates eight sets of trains delivered in April 2018, each with 3 carriages for a total of 24 carriages. Weighing 88 tons per carriage, a full train has a total capacity of 722 passengers, 231 in the first and third carriages, with the remaining 260 in the center carriage. Of this, the seating capacity is 78. The travel time between the airport and the sports complex is between 30 to 45 minutes. The electrical trains operate on 750 V DC voltage. Individual carriages, made from stainless steel, have a roof height of 3,700 mm and a floor height of 1,025 mm. The gap between bogies is 11,500 mm, with the total length of the current trains (3 carriages) at 51,800 millimetres (169.9 ft). The trains are assembled by PT INKA, with around half of the components manufactured locally. The line has 13 stations, with 6 operational as of August 2018. In each station, the trains have a transit time of approximately 1 minute, except for the two terminuses at the depot and airport, where they stop for 10 minutes. 5 of the 13 stations are connected with skybridges to surrounding buildings. Plans are in place to 2 integrate the LRT with the existing Trans Musi bus service. The train uses a 1,067 mm (3 ft 6 in) ballastless, elevated track. The signalling for the track uses signaling. Stretching 23.4 kilometres (14.5 mi) between the airport in the northwest and its depot in the southeast, the track is supported by 9 electrical substations and a third rail. After passing Ampera Station, the train crosses the Musi River next to the Ampera Bridge. 1.1.2 Research Background Indonesia is the 4th most population country in the world. In figure 1.2 shows the population of Indonesia. The level of congestion in Indonesia is also quite high and in the past two years Indonesia has also hosted ASEAN games, which are Jakarta and Palembang. Therefore, Jakarta and Palembang were visited by many athletes and added to the population during the ASEAN games. So, this year the government carried out development in the field of transportation, namely LRT. LRT in Palembang has started operating in 2018 while in Jakarta it is still under construction. Figure 1.2 Population of Indonesia 3 Source : www.tradingeconomics.com Therefore, to facilitate transportation facilities and facilitate ASEAN games, the government built LRT as a means of transportation in Palembang. So, now Palembang is more organized and become a smart city besides Jakarta. Because, LRT give modern technology that make people effective and efficient and easy to use to using LRT. Smart city is a city area that has integrated information and communication technology in daily governance, with the aim of enhancing efficiency, improving public services, and improving the welfare of citizens. Smart city that have 8 main aspects are smart mobility, smart building, smart health, smart governance, smart infrastructure, smart technology, smart citizen and smart energy. In Indonesia , a cites that have applied the concept of smart city a lot are Jakarta and Bandung. In 2018 Palembang city already applied smart city aspect which is smart mobility by utilizing existing information and communication technology. Palembang has managed the city by making Light Rail Transit to facilitate and improve the welfare of its citizen. The author think that smart mobility is important because smart mobility can reduce the level of traffic congestion and also can make people easy to do something in daily activity. LRT also is an adoption behavior because LRT is a new technology adoption in transportation sector in Indonesia which is Palembang that make people easier to use LRT. LRT has a modern technology same like in MRT Singapore and also LRT station has a self checking for the ticket to make people easier. Therefore, LRT is an adoption behavior because people in Palembang have to learn and get used to adapt LRT technology. Based on survey directly in LRT Palembang, in a month passenger data of LRT has been recorded about 198.300. Public enthusiasm for LRT is high enough. Public Relation of PT KAI Divre III Palembang said that total of passenger data itself recorded since operating from 23rd July 2018 until 13th August 2018. In a day the average of passenger is around 3.000. Currently LRT is one of the main choices of the citizen of Palembang. Although passenger data of LRT is so high but public 4 relation of PT KAI divre III Palembang ensure total of passenger data itself not to over capacity or exceed the maximum limit which is 500 passenger every time of departure. Based on data of PT KAI Divre III Palembang, the new data of LRT users on January 2019 is around 1,064,190 million passengers with the highest daily peak reaching 19,314 passengers in one day. LRT has started to become a habit for people in Palembang. Therefore, the author wants to analyze about the continuance intention to using LRT because of the data of LRT users that always increase in every month. 1.2 Problem Statement Nowadays, to determine a city is good or smart city can be seen from how advanced the technology that a city itself used. Technology can be people more easy to do something. For example like technology can make more effective and efficient in daily work. A city that called smart city must be have good technology, good facilities, good resources. To actualize all all of that, a city must be have good people that use the facilities or technology based on its usability. In this situation, Palembang has just entered the smart city era in 2018 because Palembang have smart mobility like Light Rail Transit (LRT). Light Rail Transit is made to make people easy if they have urgent business because LRT is the fast train and free of traffic. Palembang citizen so interest about LRT. The passenger of LRT is high enough in a month so can be concluded that some people in Palembang interest about the new technology which is LRT. By the successful growth of LRT Palembang , there has to be several factor influencing it. Therefore, it is necessary for the author to identify the variables that are taken into consideration as the factors influencing the continuance intention in adopting LRT in Palembang. 5 1.3 Research Question The topic of this issue is about customer knowledge and awareness towards smart mobility on LRT Palembang. These topic can be formulated into the following questions : 1. Based on the modified UTAUT2 Model ( Performance Expectancy, Effort Expectancy, Social Influence, Facilitating Conditions, Hedonic Motivation, Price Value, Habit and Perceived Security) how much is the tendency of consumer’s assessment to continuously using LRT in Palembang? 2. How strong is the continuance intention of consumers towards LRT in Palembang? 3. Based on UTAUT2 model, what are the factors influencing consumer’s continuance intention in the context of LRT in Palembang? 4. Do age and gender have an impact on the factors of modified UTAUT2 model which influence LRT users on continuously using LRT in Palembang? 5. Can this proposed UTAUT2 Model be used for predicting the continuance intention of LRT services in Palembang? 1.4 Research Object 1. To analyze how much is the tendency of consumer’s assessment of continuously using LRT in Palembang (Performance Expectancy, Effort Expectancy, Social Influence, Facilitating Conditions, Hedonic Motivation, Price Value, Habit and Perceived Security). 2. To analyze how big is the continuance intention of consumers towards LRT in Palembang.