This document discusses strategies to address truck overloading on roads in Indonesia. It recommends: 1. Immediately raising legal vehicle load limits based on a model that increased limits by 50-60% while educating road users and independently monitoring loads. 2. Further policy studies on optimum vehicle weights and road investment priorities, as well as road pricing and identifying funding sources. 3. Analyzing potentials for intermodal competition and coordination between roads, rail, water and air transport on major corridors to optimize each mode's role.

1. Truck Weight Control in Indonesia: A Fresh Perspective PRE-SCOPING STUDY ClellHarral RustamRauh Shirley Oroh Jakarta 6 May 2011

2. Purpose & Scope Concern at all levels of government with the quality of road provision in Indonesia and a growing interest in exploring measures that will reduce the damage done to pavements by heavily loaded trucks. IndII wishes to investigate what contribution it can most usefully make to assist the Government of Indonesia (GoI) in dealing with this problem. This task is to be approached in three stages: Preparation of a Background Paper on the current situation; Proposals for IndII assistance to GoI; and Following agreement between IndII and GoI on the proposed assistance, prepare an Activity Design Document (DD)

3. Most trucks on Indonesia’s roads are heavily overloaded relative to legal Gross GVW (JBI)

6. PRESCRIPTION (1) SHORT-RUN In present circumstances, it would be a huge mistake to enforce existing truck load limits A substantial loss of economic efficiency for present fleet No spare capacity in the other modes to make up the loss +33% more trucks on the roads to carry the same cargo … and far more congestion for every road user!! This is not optimal for the long-run, given Indonesia’s existing weak road pavements, which are taking a heavy beating…. which will incur heavy repair costs… but life-cycle vehicle operating costs dominate all infrastructure costs… and

7. PRESCRIPTION (2) SHORT-RUN For the short run, the enforcement effort to limit truck weights should be restricted and redirected to taking any unsafely loaded vehicle off the road. Current legal vehicle weight limits should be increased by perhaps 50-60% Outreach to trucking and major shippers to win their support in new policies Personnel charged with responsibility for enforcing weight limits should receive functional incentives Independent monitoring & enforcement new limits

8. The Sumatera Region Roads Project (2001-2005) Technical Assistance Component on Vehicle Weights and Dimensions Enforcement pilot-tested new institutional model for VWDE Educational campaign to forewarn truckers and shippers Provision of functional salaries with significant incentives for superior performance aligned with the public interest Independent monitoring with WIM weighing apparatus to verify accuracy of reported data It worked– and provides a workable model for implementation today!

10. IndII study already underwayMajor policy research needed on road pricing Efficient pricing can guide the market to define the optimum role for road transport vs rail, water, and air Good study by ND Lea Associates in 1995/96, needs updating Research also needed on road finance Connect road use charges to road funding to help forge political support for Good study by Prof. Suyono & John Lee in 2001– but needs political coalition to support.

11. PRESCRIPTION (4) LONG-RUN Analyze investment/expenditure priorities in the roads sector over time and space Improve maintenance of existing roads Strengthen existing roads to carry heavier loads Add new lanes to existing roads to reduce congestion Extending the network of higher quality roads to serve new areas, or to alleviate congestion by creating alternative routings Optimum timing for each of the above, for each corridor in the network

12. MODAL COMPETITION AND COMPLEMENTARITIES To help alleviate highway congestion, the possibilities for revival of railway freight services in the Trans Java Corridor should be reviewed. Modernization of railway passenger services creates economies of scope which (1) improve the potential competitiveness of railway freight services, and (2) also generate potential complementarities, including high quality inter-modal container services for key links.

13. ROAD PRICING & FINANCE ISSUES by Professor SuyonoDikun

14. IN SUMMARY Immediately initiate plan to raise legal limits on vehicle loads– the model developed by the Sumatera Region Roads Project can be implemented: Publicity campaign to inform all road users Seek support of all road users to avoid unsafe load extremes In parallel, create new organizational structures to force unsafe loads off the roads with funcitional positions for key staff Provision of functional salaries with significant incentives for superior performance aligned with the public interest Independent monitoring with WIM weighing apparatus to verify accuracy of reported data

15. FURTHER POLICY STUDIES Optimum vehicle weights & dimensions jointly with optimum pavement strength Evaluation of investment priorities for roads sector: congestion relief vs stronger pavements Optimum road pricing, including congestion pricing Creation of Road Fund with identified sources of funding. Potentials for inter-modal competition and multi-modal complementarities.

16. PRESCRIPTION (5) LONG-RUN Similarly, in parallel, analyze investment priorities and potentials for each of the other modes for the major corridors: Rail Water Air Analyze likely market structures and inter-modal competition Develop government policies to harness competitive forces to find the best role for each mode.

17. TERIMA KASIH