T

he planned electronic road pricing (ERP) system in Jakarta faces further delay after the city administration revealed that its preparations are still far from complete despite years of discussions.

The ERP is among the city administration'€™s programs to limit private vehicles in the capital. Academic studies on ERP have been instigated since 2006. However, the plan to implement ERP has been stalled with a number of excuses, including legal issues, technology and the city'€™s lack of decent public transportation.

Jakarta Financial and Asset Management Board head (BPKAD) head Heru Budi Hartono said that the ERP system was complex and that the city administration needed to thoroughly prepare before beginning the project.

For example, he explained, the city administration still needed to complete its business scheme and cooperation contract, in which, through bidding, private firms will develop and operate the system using their own funding with a build-operate-transfer (BOT) program. Heru said that the city administration also still needed to thoroughly review its business program to make sure that the city administration would benefit from the ERP system.

The city will specify needs and standards for the system and private firms will offer their bids. The firm who is awarded the contract will be fully responsible for business risks and potential losses.

'€œDrafting a cooperation contract is very tricky because we have to make sure it has no loopholes,'€ Heru said during a press conference at City Hall Monday.

The BOT program, he went on, would require private companies to install ERP gantries as well as operate and manage the system with their own funds. The cooperation will end in eight years, with the addition of a maximum two years for the company or companies to hand over the system and management to the Jakarta administration.

Heru added that, in addition, the administration must prepare infrastructure and facilities to help residents to transition from private vehicles to public transport. For example, he said, a spacious parking lot should be developed nearby each ERP gantry, where vehicles can be parked. City-owned bus operator PT Transportasi Jakarta (Transjakarta) will have to increase their fleet, as the amount of passengers is expected to increase once the ERP system is implemented.

The Jakarta administration also needs to integrate its data with the Jakarta Police, he said.

Moreover, Heru said that the city must further familiarize residents with the system as there would be significant changes.

He said that bidding is expected to begin in June and that there should be a bid winner confirmed by the end of the year or early next year. An Investment bid, Heru said, takes longer than a goods and services bid as it is more complicated and significantly higher in value.

Transportation Agency head of ERP division Zulkifli said that the first ERP route would be from Sisingamangaraja in South Jakarta to Kota Tua in West Jakarta, stretching through the city'€™s thoroughfares at Jl. Sudirman, Jl. MH Thamrin, Jl. Medan Merdeka Barat, Jl. Hayam Wuruk and Jl. Gajah Mada in Central Jakarta. Its second route, he said, will be from Jl. Buncit Raya in South Jakarta, to Jl. Mampang Prapatan and Jl. HR Rasuna Said before ending in Jl. Galunggung, South Jakarta.

Zulkifli said that the ERP system was already mandated under Bylaw No. 5/2015 on Transportation.

'€œAfter bid winners are announced, we need roughly 18 months before implementing the system because we must make sure that it is perfectly ready,'€ he said.