ProjectOverviewPFSperiod July2010–January2011Focussector UrbantransportCDIAsupportedactivities

(i)Comprehensivereviewoftransportsector(ii)InfrastructureinvestmentplanningandprogrammingincludingPFSofidentifiedprojects(iii)Linkingofprojectstofinancing

L2FStatus FundedbytheNationalandLocalGovernment

TRACERSTUDYOFCDIAINTERVENTIONINPALEMBANG,INDONESIA(ConductedbyR.BaoyandJ.Syah,August2018)

BackgroundofCDIAInterventionPalembang is the capital city of Indonesia’s South Sumatra Provincewith total land area of 400square kilometers and an estimated population of 1.75 million (as of 2018). Once regarded byDutchhistoriansasthe“VeniceoftheEast”,PalembangwasbuiltontheriverbanksofMusiRiver,animportantchannelinthelifeofthecitybothfromaneconomicaswellasculturalperspective.TheMusiRiverdividesthecityintotwomajorareas:thedownstreambankinthenorthwherethecentralbusinessdistrict canbe foundand theupstreambank in the southwhere the JakabaringSports Center, one of the venues of the 2018 Asian Games, and some government offices arelocated.As inmostAsian cities,Palembang is facingurbantransport issues arising from rapid populationgrowth,increasinguseofprivatetransportmodes,limitedcapacityofexistingbridgesacrosstheMusiRiver and lack of systematic transport planning.Recognizing these issues, the City of Palembangrequested for CDIA technical support for thereviewof itsComprehensiveGreenTransportationProgram with the primary aim of identifyingpriority infrastructure investments that couldenhancetheurbantransportsystemofthecity.InDecember2009,CDIAapprovedtherequestoftheCityofPalembangfortechnicalassistanceforthecomprehensivetransportsectorreview,investmentplanningandprogramming,preparingpre-feasibilitystudies(PFS)ofprioritizedprojectsandlinkingtheseprojectstodownstreamfinancing.After about sixmonths of project preparationwork, the consulting team dispatched by CDIA toPalembangsubmitteditsfinalreportinJanuary2011withthefollowingkeyrecommendations:(i)citycentertransportandenvironmental improvementsalongSudirmanStreet;(ii)constructionofMusi Bridge IV; (iii) expansion of Trans Musi (BRT) network including pedestrian and publictransport infrastructure improvements to Trans Musi corridor 4 and park-and-ride facilities inexisting bus terminals; and (iv) integration of Musi River transport to the Trans Musi network.Valued at IDR 1,571 billion ($175 million), these transport infrastructure investments wererecommendedwiththeendviewofpromoting increaseduseofpublic transport, reducingtrafficcongestionparticularlyinthecitycenter,andaddressingthetransportneedsofthepoorandthemostdisadvantagedresidentsofthecity.As part of its internalmonitoring and evaluation processes, CDIA conducted the tracer study inPalembanginJuly2018totrackprogress,effectivenessandresultsofitscompletedinterventions.Followingarethemainfindingsofthetracerstudy.ProjectImplementationProgressasofJuly2018 Soonafter theCDIA completed thePFSon theprioritized transport investments, thePalembangcitygovernmentgraduallyimplementedthePFSrecommendationswithfundingsupportfromthenationalgovernment.AsofJuly2018,fouroftheprioritizedtransportprojectsareoperational.

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Citycentertransportandenvironmentalimprovements -In 2016, the City Public Works Department began theimplementation of PFS recommendations along JalanSudirman, the busiest street located within the city’scentral business district (CBD). Projects implementedbythe city in this area include: expansion, concreting andbeautification of pedestrian sidewalks on both sides ofthe Jalan Sudirman, enforcement of off-street parkingeffective July 2018, installation of street lighting andprovision of recreational facilities near the AmperaBridge.Wideningofthepedestrianwalkwasreplicatedin

thevicinityoftheGrandMosqueandthisinitiativewillbescaledupinothermajorstreetsofthecity.Anationalgovernment-fundedelevatedlightrailtransit(LRT)projectthatrunsinthemiddleofSudirmanStreethassignificantlyalteredthe landscapeof thecityparticularly in theCBD.This24-km LRT connecting Palembang airport and the Jakabaring Sports Complex started operationslast July25 in time for the18thAsianGamesheld inPalembangCityand Jakarta inAugust2018.ImplementationoftheprioritybuslanealongSudirmanasrecommendedinthePFSwilldependonthe results of the off-street parking experiment that started in July and the effect of the LRToperationonpublictransport.

Construction of newMusi River bridge (Musi IV) -Since 1965, only the Ampera Bridge connects thecitycentertotheJakabaringdistrictatthesouthernsideofMusiRiver.Afterseveralyearsofbeingintheprojectpipeline, constructionof theMusi IVbridgeproject finally started in March 2016 with thegovernment allocating IDR 521 billion. The originalplan was for this bridge to be completed in 30monthsintimeforthe2018AsianGames.However,the project status as of August 2018 indicates thatbridgeconstructionwillnotbecompletedbyendof2018.Whencompleted,thisnewbridgewilldecongestAmperaBridgeandreducethevehicletrafficflowingintoJalanSudirman.

Expansion of Trans-Musi (BRT) network – from two corridors in 2009, the Trans-Musi currentlyoperatesinninecorridorscoveringtheentirecitywithtotalcorridorlengthofabout120km.Withthe network expansion, the total number of buses increased from25 in 2009 to 239 at presentconsistingof110largebusesand129mediumbuses.Asacombinedresultofnetworkexpansionandincreaseinridership,farerevenuesincreasedfromIDR682millionin2010toIDR21,438millionin2017.Trans-Musioperations,however,remaindependentongovernmentwithtotalsubsidyin2017amountingtoIDR22,809million.Apartfromacquisitionof130outofthe239buses,thecitygovernment has invested in bus shelters now totaling 251, pedestrian facilities and road

maintenance along the bus corridors. Old bus fleetsoperated by private companies are currently beingphasedoutinlinewiththePFSrecommendation.Park-and-ride facilities at Alang-alang Lebar were likewiseimprovedwhileplans forsimilar improvements inthreeotherTransMusibusterminalshavebeenformulated.

Integration ofMusi River transport into the TransMusinetwork–theMusiRiverprovidesatraditionalmeansoftransport for communities along the riverbanks.FollowingthePFSrecommendation, thecity invested inseven additional ferryboats and integrated river

CompletedpedestriansidewalkalongJalan

Sudirmanwithinthecitycenter

OngoingconstructionofMusiBridgeIV

` ImprovementofferryterminalalongtheMusiRiver.AtthebackgroundistheAmperaBridge.

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transport operation into the TransMusi network. The city also introduced improvements to theferryterminalsandbusinterchange.Thesecity-ledinitiativeshavebeenrecognizedbythenationalgovernmentasamodelforlandandwatertransportintegration.CDIAInterventionResultsOverall,theCDIAPFSinterventioninPalembanghasgeneratedpositiveresultsbasedonfeedbackfrom project stakeholders interviewed during the tracer study. While a number of the PFS-recommended priority infrastructure investments have yet to be fully implemented, city officialsalreadyrecognizetheimportantbenefitsthatthecompletedprojectshavebroughttoPalembangin terms of improving transport efficiency (e.g., reduced congestion and reduced travel time),enhancing environment along the bus corridors (e.g., better air quality and road safety) andprovidingbettermobilityandaccessibilityamongthepooranddisadvantagedsector.Promoting increased use of public transport.Records obtained from the Trans Musi OperationsManager reveal that an increasing number ofPalembangcityresidentsarepatronizingTransMusibus services. From 230,000 in 2010, the totalnumber of passengers increased to 4.1 million in2017.KeyofficialsfromTransMusiaswellastheCity Department of Public Transportation largelyattributethis increasetothe improvedbusservicesand infrastructure for passengers, expansion ofTrans Musi corridors and effective network offeederservicesthatincludesangkots(traditionalcitybuses)andbecaks(non-motorizedtricycles).Reducing traffic congestion. In major transport corridors where Trans Musi buses operateespeciallyalongJalanSurdimanwherethecityimplementedtheCDIA-recommendedinterventionssuch as off-street parking and pedestrian lane improvement, city officials observe a significantimprovementintrafficflowespeciallyduringpeakhours.Thiswasthesameobservationofmajorityofthemotoristsandbuscommutersinterviewedduringthetracerstudy.Accordingtotheheadofoperations department of TransMusi, the improved traffic flowwill ultimately result in reducedvehicleoperatingcost,reducedtraveltimeandmoreefficientbusnetworkoperations.Addressing the transport needs of the poor and the disadvantaged. Improvement to publictransport facilitiesandpedestrianenvironment iswidelyperceivedasadvantageous to thepoorsector estimated at about 25% of the city population in 2016. The expansion of Trans Musi

network and improvement of pedestriansidewalks in major streets will benefit the poorand disadvantaged sector in terms of enhancingtheir mobility and access to socio-economicservicesandemploymentopportunities.Addressing issues on environment and climatechange. A key objective of the urban transportstrategy developed by CDIA was to minimize theimpact of increased vehicle emissions bypromotinggreateruseofpublictransporttherebyreducing the rate of private vehicle use, limiting

OneoftheTransMusibusesplyingthebus

corridoralongJalanSudirman.

ImprovedpedestrianwalkalongtheAmperaBridge.

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thegrowthintrafficvolumesandultimatelyreducingCO2emissions.Withthegradualrealizationof thevarious investment componentsof theurban transport strategy,Palembang residentswilleventuallyreaptheproject’senvironmentalbenefitsasenvisagedinthePFS.ConclusionandLessonsLearnedFindings from this tracer study show the clear link between the ongoing and completed urbantransport-related initiatives in Palembang and the PFS on urban transport project supported byCDIA back in 2011. Key lessons learned from CDIA’s intervention in Palembang include: (i) theimportance of formulating a medium-term plan for urban transport to guide subsequentinvestmentdecisions;and(ii)thevalueofworkingwiththeproperstakeholdersduringPFSstagetoensureprojectownershipfromprojectdevelopmentuntilprojectimplementation.As envisioned in the PFS, the bulk of the projectinvestments are borne by the national government.The hosting of the 2018 Asian Games by PalembangCitywas identified as the key factor that acceleratedthe implementation of the urban infrastructureprojects in the city including the 24-km Light RailTransit(LRT)whichbeganpilotoperationslastJuly25,2018. Although LRT was not identified as animmediate priority in the Medium-term Action Planand Investment Program, city officials welcome theLRT as a key investment that will have far-reachingeffectson the transport sector inPalembangespecially inpromotinguseofpublic transportandreducing traffic congestion along the major roads in the city center. The Secretary of the CityTransportation Department, however, pointed out the need to update themedium-term actionplanpreparedwithCDIAassistancein2011takingintoconsiderationallmajordevelopmentsthathaveemergedafter2011includingtheoperationoftheLRT.Withthewealthofexperiencegainedfrom the CDIA intervention, the Secretary is optimistic that the city will find the appropriatesolutionstonewtransportissuesthatmaycropupinthefuture.

Newly-builtLRTtraversingthemedianofJalanSudirman,thebusieststreetinPalembang