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Jakarta’s long-anticipated ERP system in limbo
Roadblock: Vehicles are seen on Jl
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oadblock: Vehicles are seen on Jl. Medan Merdeka Barat in Jakarta. The Electronic Road Pricing (ERP) system has been delayed again following an allegation of maladministration in the tender process.(JP/ Wendra Ajistyatama)
Touted as the ultimate solution to Jakarta’s traffic woes, the development of the Electronic Road Pricing (ERP) scheme hit yet another snag after Jakarta Governor Anies Baswedan claimed that maladministration had marred the system’s tender process.
He reportedly consulted with the Attorney General’s Office (AGO) in November 2018 and asked it to look into the case and provide a legal opinion.
It is uncertain when the AGO will conclude its examination.
“Based on our reports, the tender process was not carried out properly, so it can be challenged no matter what the outcome,” Anies said.
He did not elaborate on what exactly had gone wrong but cited frequent meetings between the administrator and potential bidders — despite being held formally — as an example.
Anies went on to say that “it is more important to improve [Jakarta’s] public transportation system than the ERP”.
The project’s latest setback reportedly prompted two foreign firms that were prequalified as potential vendors, Norwegian-based Q-Free and Sweden-based Kapsch TrafficCom, to withdraw from the tender process.
The move has sent the ERP — which was supposed to start operating in November this year — into another tailspin after already experiencing numerous delays.
Indonesian company PT Bali Towerindo Sentra is now the only remaining participant in the tender process.
Q-Free said in a statement that its decision to withdraw “is a consequence of the continued uncertainty regarding tender timeline, project structure and financing and project profitability”.
The ERP was first proposed to the administration in May 2005 to prevent traffic jams in the city.
In 2007, then-governor Sutiyoso said the system would be a suitable replacement of the 3-in-1 car sharing policy, which was deemed ineffective in easing congestion.
After more than a decade of planning and multiple changes to Jakarta’s leadership, the scheme has yet to come to fruition, mainly because of legal issues.
In 2016, the Business Competition Supervisory Commission criticized Gubernatorial Regulation No. 149/2016 on traffic control, saying it was monopolistic for specifying the use of only one type of ERP technology.
An ERP gantry has already been installed on Jl. Medan Merdeka Barat, Central Jakarta.
The city initially planned to conduct a trial run of the ERP system in October last year while at the same time, deliberating the legal basis to allow the implementation of the system.
A similar plan was also postponed in November.
The use of an ERP system as a measure to address the capital’s traffic congestion was mentioned in Presidential Regulation No. 55/2018 on the Greater Jakarta transportation master plan for 2018-2029.
Authorities said they hoped the ERP could replace the odd-even license plate policy as a way to alleviate road congestion in Jakarta, home to more than 13 million registered motorcycles and 4.4 million cars, by charging drivers substantial fees.
Transportation Minister Budi Karya Sumadi has demanded that the Jakarta administration expedite the ERP’s implementation amid worsening traffic in the city.
Jakarta currently enforces an odd-even license plate policy at some major thoroughfares to limit the use of private vehicles.
The policy, which was initially applied to reduce congestion during the hosting of the Asian Games and Asian Para Games last year, was extended this year to compensate for delays in the ERP scheme.
Jakarta Transportation Agency acting head Sigit Widjatmoko said he remained confident that the ERP system could be implemented as planned.
“I can’t really conclude that because two bidders have backed out; the ERP would be delayed as well,” he said.
“We’ll monitor the progress and one thing’s for sure, the tender process is still running according to schedule.”
Tori Damantoro of the Jakarta Transportation Council said the ERP was an inevitable addition to Jakarta’s frenetic roads and the capital’s growing number of cars and motorcycles.
He said the project would need the right political influence in order to continue and finally be implemented.
“Being deliberate is important, but it’s also imperative to consider how crucial the issue is,” Tori said.
