RECENT DEVELOPMENT OF INDONESIAN RAILWAY INSTITUTION

Indonesian railway policy reform has been initiated since 1991, where several stages of improvement took place. Nevertheless, train services and length of track in operation are declining. There has been a slowdown in policy implementation, especially since Asian monetary crisis in 1997 hit the coun...

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Bibliographic Details
Published inJournal of the Eastern Asia Society for Transportation Studies Vol. 7; pp. 1886 - 1901
Main Authors LUBIS, Harun Al-Rasyid S., NURULLAH, Pamungkas
Format Journal Article
LanguageEnglish
Published Eastern Asia Society for Transportation Studies 2007
Subjects
Corporation
Institutional development
Railway restructuring
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Summary:Indonesian railway policy reform has been initiated since 1991, where several stages of improvement took place. Nevertheless, train services and length of track in operation are declining. There has been a slowdown in policy implementation, especially since Asian monetary crisis in 1997 hit the country. Some key elements of government policy reform halted and PT Kereta Api (Persero) as a sole state-owned railway corporation failed to implement the corporate restructuring agenda. Under the new Law Number 23 / 2007 on Railway, it is expected that this matter will be resolved. The new law also underlines the importance of inviting private sector participation in developing railway industry in the country. This paper reports the recent institutional development of Indonesian railway. Brief history of railway restructuring is presented, supported by the underlying problems existed. As the practice of multi-operators is envisaged in the future, the necessary changes in the institutional set up of Indonesian railway are also discussed.
ISSN:1881-1124
DOI:10.11175/easts.7.1886