Host: Eastern Asia Society for Transportation Studies
Pages 239
Indonesia railway policy reform has been initiated since 1991, where several stages of improvement took place. However train services decline, length of track in operation decline too, the sector does not function as expected by the Law number 13 / 1992 on Railway. There has been a slowdown in the policy implementations especially since the Asian financial crisis in 1997 hit the country. Some key elements of the government policy reform halted and and PT Kereta Api (Persero) as the sole state-owned railway corporation failed in implementing 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 Indonesia railway. Brief history of railway restructuring together with the underlying problems are reported. As the practice of multi-operators is envisaged in the future, the necessary changes in the institutional setting of Indonesia railway are also discussed.
