The Implementation and Impacts of PSO, IMO, and TAC Schemes on National Railways Reform in Indonesia

Abstract

The Public Service Obligation (PSO), Infrastructure Maintenance and Operation (IMO), and Track Access Charge (TAC) schemes marked a new beginning towards national railway industry which given its autonomy to offer commercial service, better quality of service provision, and competitiveness, in balance with the accountability to the government. The schemes were also proposed as initial step to clarify the separation of railway infrastructure and transport services management. Within five years implementation, there were some problems related to the lack of optimization on railway performance. It is necessary to reformulate the strategies to avoid further dispute and to support the smooth-running of the national railway reform. The simplest thing that the government should do is to refer back to the genuine concept of PSO, IMO, and TAC schemes as the unity of independent entities.