Transformational Change for Indonesia’s Urban Transport

  29 July 2020

The transport sector in Indonesia is the third-largest source of GHG emissions contributing to 23% of the national emissions, with land transport representing 89% of all GHG emissions in this sector. The Sustainable Urban Transport Programme Indonesia – Nationally Appropriate Mitigation Actions (SUTRI NAMA) is a NAMA Support Project (NSP) that aims to enable Indonesian cities to contribute on climate change mitigation through sustainable transport policies and infrastructure projects supported by a national urban transport policy and capacity development.

Officiated on 17 December 2017 through the signing of an Implementation Agreement by the Ministry of Transportation (MoT) and GIZ, SUTRI NAMA is funded by the German Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety (BMU) and Department for Business, Energy, and Industrial Strategy of United Kingdom (BEIS) through NAMA Facility.

Since its inception and to achieve its objectives, SUTRI NAMA has supported MoT through several approaches, the first being on funding mechanisms to support the implementation of public transport projects and manage transport demands by leveraging both public and private sector financing. Among the funding mechanism that was successfully achieved is the implementation of a new programmatic approach that decided financial sources to fund proposed urban mass public transport projects by Bappenas, which has been reflected in the List of Medium-Term Foreign Loan Plans (Blue Book).

On November 2018, SUTRI NAMA signed an MoU with PT SMI, an Indonesian state-owned infrastructure financing company and the first Green Climate Fund’s (GCF) nationally-accredited entity in Indonesia, to develop and expand cooperation on sustainable transport projects in Indonesia. The MoU aims to promote collaboration to ensure bankability of sustainable transport projects. It also allows to design and identify appropriate funding mechanism, and information exchange on business and programme supports for project development.

The second approach is the development of a Technical Support Unit (TSU) within the Directorate General of Land Transportation (DGLT) of the MoT to support cities and policymakers with challenges in developing a sustainable urban transport system. Established in August 2019, the TSU will provide local governments with technical guidance and capacity development for the preparation and implementation of sustainable urban transport and transport demand management projects.

Technical Support Unit (TSU) from the Directorate General of Land Transportation of the Indonesian Ministry of Transportation during the Capacity Development (Photo Credit: GIZ Indonesia)

To deliver high-quality services and support to local governments, SUTRI NAMA conducted a Capacity Development on 19-20 February 2020 in Jakarta, with a focus on Urban Transport Institution to equip the TSU with the right tools and knowledge. This event is the first of a series of workshops for the TSU that will take place throughout the programme that is scheduled to be completed in December 2022.

The third approach is the establishment of a Measurement, Reporting, and Verification (MRV) system of emission reductions and co-benefits of urban transport development projects that can be applied by national and sub-national implementation partners. The current system and best practices have recently been shared during the annual Technical Assistance on GHG Emission Reduction (Bimbingan Teknis RAN-GRK) Calculation in the Land Transport Sector on 29 July 2020 in Yogyakarta, that was held by the MoT and supported by SUTRI NAMA. In the end of the workshop, participants gained an understanding of the concept, methodology, and data requirement and collection for GHG emission reduction for land transport sector, especially two mitigation actions namely Bus Rapid Transit and Intelligent Transport System/Area Traffic Control System (ITS/ATCS) under the DGLT’s responsibility.

Session from the Technical Assistance on GHG Emission Reduction workshop. (Photo Credit: GIZ Indonesia)

Lastly, SUTRI NAMA supports the MoT in developing preparatory studies in the form of technical guidance as basis for drafting relevant regulatory document(s) for the implementation of the BTS scheme. BTS is a mechanism to support road-based urban public transport development through operational subsidy developed by the MoT. The scheme is rolled-out to help local governments address the issues of financial and institutional capacities which all the time have been hindering its public transport development.

In April 2020, SUTRI NAMA completed two preparatory studies for the MoT, namely a study on owner estimate for urban bus services and a study on operations plan, monitoring, and evaluation of road-based urban public transport services that provides a guideline to facilitate service managers in realizing effective and efficient transportation services. The results of these studies have been delivered to the MoT at the beginning of April 2020 which will serve as experts’ input and provide a basis for the institution in formulizing relevant regulations ahead of the implementation of the BTS scheme.

Nabila Fachir – Communications & Public Relations Professional
Sustainable Urban Transport Programme Indonesia (SUTRI NAMA) and the project component Indonesian Bus Rapid Transit Corridor Development Project (INDOBUS) Indonesia