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Ex-post Evaluation

Asia

1. Outline of the Project

Country:

Indonesia

Project title:

The Project of Modernization of Perumka’s Education and Training System in Jabotabek

Issue/Sector:

Traffic

Cooperation Scheme:

Project-type Technical Cooperation

Division in Charge:

Social Development Cooperation Department

Total Cost:

Period of Cooperation

September 1992 – August 1997

Partner Country’s Implementing Organization:

Land Communication, Ministry of Communication, Indonesia National Railways

Supporting Organization in Japan:

Ministry of Transport (current Ministry of Land, Infrastructure and Transport)
Japan Railway companies

Related Cooperation:

1-1 Background of the Project

To alleviate perpetual traffic jam in JABOTABEK (region including the Jakarata metropolitan area covering 630,000 hectares), the Indonesian government decided to reform and improve the existing railways by modernizing the facilities and building railway systems which will both quantitatively and qualitatively satisfy commuters, who are expected to increase. Using yen-denominated loans, the government aimed to modernize the city railways by adding more railway lines, renovating train stations, elevating railroad tracks, adding automated signals, and strengthening and increasing the number of train cars.

In keeping with this modernization of the railway system, Indonesia National Railways (PERSERO) requested technical cooperation from the Japanese government. Through the cooperation, the Indonesian government planned to adopt a basic training system for its operation and maintenance staff, to help improve safety and ensure effective transportation functions.

1-2 Project Overview

Technical transfer conducted by Japanese experts and training of counterparts in Japan provided PERSERO employees with theoretical and practical knowledge of management and maintenance of railway systems and improved their technical skills, thereby contributing to the modernization of Indonesia’s railways.

(1) Overall Goal
To realize safe and effective railway operations necessary for modernization of the Indonesian JOBOTABEK urban railway system.

(2) Project Purpose
To provide theoretical and practical training to employees at the Bekasi Training Center (hereafter referred to as “the Center”) in PERSERO and improve their technical skills.

(3) Outputs
1) Sufficient allocation and capacity building of training instructors, and establishment of an education and training system.
2) Improvement of training facilities and effective usage of equipment by instructors.
3) Appropriate management of the training center.
4) Sustainable management of education and training by PT KAI to respond to actual demands and conditions.

(4) Inputs

Japanese side:

Long-term Experts

17

Equipment

530 Million yen

Short-Term Experts

41

Local Cost

50 Million yen

Trainees Received

25

Indonesian Side:

Counterparts

17

Land and Facilities

 

Local Cost

430 Million rp. (58 Million yen)

2. Evaluation Team

Members of Evaluation Team

Ridhwan D. Marwy, PT. Mitrapacific Consulindo International (MCI)

Period of Evaluation

February 14, 2003 – March 4, 2003

Type of Evaluation:

Ex-post Evaluation

3. Results of Evaluation

3-1 Summary of Evaluation Results

(1) Impact
When the Project first began, the responsibility for the Bekasi Training Center was being shared. The Land Communication within the Ministry of Transportation and Communication was responsible for its facilities, and PERSERO had jurisdiction over its activities. However, as a result of urges made under the Project, PERSERO, which also operates the railway system, gained total control over the center in 1996. The Bekasi Training Center later gained positive recognition for its activities, and in 1999 was placed under the jurisdiction of PERSERO’s training division, and was renamed the Education and Training Operation Urban Railway Center (MOTRAIN). Since then, the scope of its business has expanded.

Intensive human resource development was implemented for PERSERO employees’ even after the completion of the Project, and the overall goal to “improve technical skills of employees” was achieved. A study showed positive results for one of the three targeted stations (Bekasi Station) such as improved departure time schedules, fewer nonpaying passengers and increased ticket sales. However, no improvements were found in other stations. On the other hand, the operating rate of electric locomotive engines and diesel locomotive engines gradually decreased, from 70% in 1999 to about 60% in 2002. Hence, the overall goal of realizing safe and efficient railway operation has not yet been achieved at this point. Reasons for this include problems such as old compartments, not being able to secure operators of railroad crossings, nonpaying passengers, and stones being thrown at the trains.

(2) Sustainability
Of the 17 counterparts, 12 have been promoted and assigned to posts throughout Indonesia. PERSERO was reorganized as MOTRAIN in 1999, and since then, 10 of the 25 competent employees who received training in Japan have remained with MOTRAIN as instructors, taking on core roles in the training. No technical problems were observed.

As their business expanded, MOTRAIN instructors and employees continued the original training courses and at the same time opened new courses. One hundred nine (109) courses were developed as training programs from 1999 to 2002, well exceeding the 18 courses which existed when the Project began. Since employee training took place in a concentrated manner during this period, and as a result there remain few railway employees in the JABOTABEK area without training, the number of participants in the training programs has been decreasing.

PRESERO has increased its annual budget to cover the costs necessary for conducting training c and maintaining equipment/facility at MOTRAIN. PERSERO plans to allocate 16.8 billion rupiah (rp.) in 2003 (2.6 billion rp. in 1997). Accordingly, no financial problems were observed.

There are six training centers related to railway management under the jurisdiction of PERSERO’s training division, and as a general rule, each must raise its own funds. In the future, MOTRAIN will raise capital also through affiliations with external organizations, such as by managing practical training in the structural engineering department of the Bandung Institute of Technology. It is also considering raising funds by means of overseas sources. The entire training division is preparing to become accredited under the ASEAN Railway Cooperation Program as a training center for the southeast Asian region.

Almost all the equipment procured in the Project are in good condition, but two of the equipment pieces intended for training will unlikely be used. The Electric Train Driver Simulator is training device for driving a train, but its trains run only within the JABOTABEK area. Most railway employees within the area have already completed their training, and therefore there is no opportunity for this equipment to be used unless there is new recruitment of drivers. Furthermore, the Polling Stock Simulator has mechanical problems and is not in perfect condition.

3-2 Factors that Promoted the Realization of Effects

(1) Factors Concerning the Planning
N/A

(2) Factors Concerning the Implementation Process
1) The fact that PERSERO has approved MOTRAIN’s training program and ensured a budget for it has helped maintain its technical level and meet the project goal.
2) Despite reorganization, skilled counterparts continued to be assigned, which helped in maintaining the Center’s technical level and meet the project goal.
3-3 Factors that Impeded the Realization of Effects

(1) Factors Concerning the Planning
N/A

(2) Factors Concerning the Implementation Process
Despite the fact that demand for urban railway services exceeds the supply, its operation rate is low, and the services are neither safe nor efficient. This stems from low level of awareness of the users regarding such problems as the compartments being old, insufficient improvement of PRESERO management, rocks being thrown to moving trains, and vandalizing.

3-4 Conclusion

PERSERO supports MOTRAIN’s technical, organizational and financial independence, and training for the railway employees have been implemented smoothly. MOTRAIN has a long-term vision of forming affiliations with other institutions and transferring technology to neighboring countries, and is striving to improve its role as a personnel training center. However, despite its intensive training of PERSERO employees, the overall goal has not yet been achieved due to issues other than those related to personnel training.

3-5 Recommendations

To implement safe and efficient railway operations, not only technical skills of the employees but better community awareness and participation, as well as a balance between supply and demand are also necessary. A consolidated program should be considered.

3-6 Lessons Learned

N/A

3-7 Follow-up Situation

N/A

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