IKN autonomous rail transit to operate commercially in 2025
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Trem otonom IKN beroperasi komersial 2025
15 August 2024
By Ichsan Amin
Jakarta, ID – After the trial and the initial operation on 17 August 2024, the autonomous rail transit (ART) or autonomous tram in Nusantara Capital City (IKN) will operate for free within IKN.
The government plans to prepare a tender aiming for commercial operations to begin in early 2025. Railways Director General of the Transportation Ministry Risal Wasal stated that his agency has certified and outlined the stages of the tender.
“Currently, the operator remains the investor from China, which means that both operation management and financing are still handled by China. Even after the initial operation on 17 August, the service will continue to be free,” he told Investor Daily in Jakarta on Wednesday (14/8/2024).
Risal mentioned that the free operation will continue until December 2024. Participants in the tender must be business entities, but they are permitted to collaborate with other parties.
“Regarding the tender, we do not yet know who will participate. However, we are committed to holding a tender to begin commercial operations in early 2025,” he added.
Currently, two lines of the autonomous tram are being prepared in IKN, each consisting of three carriages. The operation of the autonomous tram has been planned for a long time and will commence initial operations on 17 August 2024.
Future transportation
The Transportation Ministry plans to make autonomous vehicles the cornerstone of the future transportation system. Transportation Minister Budi Karya Sumadi emphasised that all parties must prepare to utilise this form of mass transportation effectively.
“Transportation transformation in the digital era will be increasingly influenced by autonomous technology. We have already seen innovations adopting this technology at various levels in Indonesia. In the future, autonomous vehicles will become the main pillar of the national transportation system,” the Transportation Minister revealed.
The Transportation Ministry is currently developing regulations for the implementation of the autonomous tram, covering various aspects such as facilities and infrastructure, traffic management, human resources, and financing. For now, the regulation on autonomous transportation has been outlined in Law Number 22 of 2009 on Traffic and Road Transportation.
“Let us continue to study, discuss, and prepare ourselves, as autonomous vehicles will become an inseparable part of our everyday lives,” the Transportation Minister added.
Meanwhile, transportation observer Djoko Setijowarno revealed that autonomous transportation is efficient and eco-friendly, and therefore, must be welcomed by the public.
However, human resources are continuously being enhanced since the technology originates from China. "We need human resources capable of operating this technology. On the other hand, we do not yet know if operation by the private sector is possible," he revealed when contacted by Investor Daily.
Djoko added that, in the early stages, the operation of autonomous transportation will be implemented over short distances or as feeders. "For the time being, the main routes will still use buses or other more affordable transportation options," he explained.
Affordable in various aspects
Previously, Indonesian President Joko Widodo stated that public transportation systems like the mass rapid transit (MRT), light rail transit (LRT), and high-speed railway could significantly reduce losses in various aspects.
President Jokowi stated that each regional government, whether at the provincial or regency/local level, must consider building green mass transportation. This step is crucial, as it is essential to reducing air pollution in each region.
The Head of State specified that the modes of transportation being referred to include the MRT, LRT, and high-speed railway. Despite Jakarta already having these three modes of mass transportation, the city still produces an air quality index of 190-200 each day, whereas it should be 50 for the air to be considered healthy.
"Beware of cities that are starting to become congested, as they also produce more pollution. The ones who will pay the price are our children, especially babies, who will suffer from respiratory illnesses," President Jokowi said while giving directives to regional heads from all over Indonesia at the State Palace in Nusantara Capital City (IKN) in North Penajam Paser on Wednesday (14/8/2024).
However, the MRT, LRT, and high-speed railway have high construction costs. For example, the development of the MRT costed up to Rp1.1 trillion per kilometre 10 years ago. Today, the required funds have increased to Rp2.3 trillion per kilometre.
Moreover, operating costs reach Rp800 billion annually, which must be spent to ensure the smooth operation of the MRT service. Even if all MRT trainsets in Jakarta have been procured, the annual expenditure can reach up to Rp4 trillion.
Next, regarding the LRT, the operating costs can reach up to Rp700 billion annually. Meanwhile, the high-speed railway incurs annual costs of Rp780 billion per kilometre.
"Are there any governors or regents/mayors who are capable of constructing an MRT? Anyone? Bali? Be careful. Please be careful. You might be able to construct it, but the operating costs are not small. Is your regional state budget ready? Because the MRT, LRT, and high-speed railway often incur losses. Therefore, there has to be a Public Service Obligation (PSO), and your regional state budget must be prepared to cover these operating costs," President Jokowi warned.
Furthermore, President Jokowi recommended that governors and regents/mayors consider procuring an alternative mass transportation solution, which is the autonomous tram. He mentioned that this mode of transportation has lower construction and operating costs.
“The autonomous rail transit is more cost-effective as it does not use traditional tracks but instead uses magnets. Each unit, consisting of three carriages, costs less than Rp74 billion. Additionally, its operation costs only Rp500 million per month,” President Jokowi explained.
The autonomous tram is planned to be used and tested in IKN. The President also emphasised that it is now time for regional governments to consider and plan for adequate and eco-friendly public transportation.
"If there is no MRT, LRT, or high-speed railway, we lose Rp65 trillion each year due to congestion. In Greater Jakarta, the losses will probably surpass Rp100 trillion," Jokowi added.
