Master’s Thesis

How Electronic Toll Collection Deployment Affects Transport System

Efficiency: The Study of Indonesia Toll Road Network

by:

RAHMAWATI Alfi Hidayatul

51217625

September 2019

Master Thesis Presented to

Ritsumeikan Asia Pacific University

In Partial Fulfillment of the Requirements for the Degree of

Master of International Cooperation Policy

 Summary

Traffic congestion represents a significant threat to accessibility and mobility in

Indonesia. In the case of the toll road, the stop and go movement along the toll road plaza

as the effect of the payment mechanism often causes the delay at toll gates, which results

in traffic congestion. As the situation becomes more serious, a technology innovation

called the Electronic Toll Collection (ETC) has been deployed in Indonesia toll road

network to curb the transaction time in toll payment and thereby increase the level of

service. Previous research indicated that the ETC implementation brings benefits for both

toll road users and operators in many ways.

The study utilizes a quantitative method of econometric panel regression using data

from selected toll gates in the Indonesia toll road network from January 2017 to December

2018 to analyze how the ETC deployment affects transport system efficiency. The

findings indicate that the intervention of ETC implementation significantly decreases the

transaction time in toll gates by 93.5%, cateris paribus. Thus, the intervention eases the

accessibility and yield efficiency in transaction time. Furthermore, an adapted strategy

after the implementation could be considered, especially regarding the trend of surging

traffic on toll roads that may cause bottlenecks after entering toll gates.

Keywords: transport efficiency, accessibility, electronic toll collection, toll payment

method, congestion, regression

JEL Classification: D62, R41, R48

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 Table of Contents
Summary ....................................................................................................................................... ii

Table of Contents ......................................................................................................................... iii

List of Tables................................................................................................................................. v

List of Figures .............................................................................................................................. vi

List of Abbreviations................................................................................................................... vii

Acknowledgment ....................................................................................................................... viii

Certification Page .......................................................................................................................... x

Chapter 1: Introduction ................................................................................................................. 1

1.1. Background ................................................................................................................... 1

1.2. Research Question and Objective.................................................................................. 3

1.3. The Significance of the Study ....................................................................................... 3

1.4. Limitation ...................................................................................................................... 4

1.5. Research Outline ........................................................................................................... 4

Chapter 2: Literature Review ........................................................................................................ 6

2.1. Transport System Efficiency ............................................................................................. 6

2.2. Electronic Toll Collection ................................................................................................. 7

2.3. Transport System Efficiency and ETC .............................................................................. 9

Chapter 3: Methodology ............................................................................................................. 11

3.1. Research Design .............................................................................................................. 11

3.2. Data Source ..................................................................................................................... 12

3.3. Research Site ................................................................................................................... 14

3.4. Data Collection and Analysis .......................................................................................... 15

Chapter 4: Results and Discussion .............................................................................................. 18

4.1. Electronic Toll Collection in Indonesia....................................................................... 18

4.2. Results ......................................................................................................................... 23

4.2.1. Data Description .......................................................................................................... 23

4.2.2. Regression Analysis .................................................................................................... 24

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 4.2.3. Regression Analysis with Open and Closed Gate System Dummy Variable.............. 28

4.3. Discussion ................................................................................................................... 32

Chapter 5: Conclusion and Recommendation ............................................................................. 35

5.1. Conclusion....................................................................................................................... 35

5.2. Recommendations ........................................................................................................... 37

References ................................................................................................................................... 39

iv
 List of Tables
Table 1 Summary of Literature Review ...................................................................................... 10
Table 2 Variables and Data Sources ........................................................................................... 13
Table 3 Toll Roads Observed in this Study ................................................................................. 15
Table 4 Research Data Description ............................................................................................. 23
Table 5 Panel Data Regression Results ....................................................................................... 25
Table 6 Regression Result with Added Dummy Variable .......................................................... 29
Table 7 Regression Result of Policy Intervention and Open Gate System ................................. 30
Table 8 Regression Result Policy Intervention vs Log Average Daily Traffic ........................... 31

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 List of Figures
Figure 1 Research Flowchart .......................................................................................... 17
Figure 2 Progress of ETC Implementation in Indonesia Toll Road Network ................ 19
Figure 3 Comparison of GTO Percentage & ETC Penetration in Toll Road per June 2017
........................................................................................................................................ 22

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 List of Abbreviations
BPJT : Badan Pengatur Jalan Tol – Indonesia Toll Road Authority
DV : Dependent Variable
EDC : Electronic Data Capture
ETC : Electronic Toll Collection
FEM : Fixed Effect Model
GTO : Gerbang Tol Otomatis - Automatic Toll Gate
ITRA : Indonesia Toll Road Authority
ITS : Intelligent Transportation System
IV : Independent Variable
Jabodetabek : Jakarta Bogor Depok Tangerang Bekasi
Jagorawi : Jakarta Bogor Ciawi
JIUTR : Jakarta Intra Urban Toll Road
JORR : Jakarta Outer Ring Road
MSS : Minimum Service Standard
MLFF : Multi Lane Free Flow
MPWH : Ministry of Public Works and Housing
MTC : Manual Toll Collection
PLS : Partial Least Square
REM : Random Effect Model
SPM : Standar Pelayanan Minimal – Minimal Service Standard

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 Acknowledgment

First, I would like to express my sincere gratitude to my advisor Otsuka Kozo

Sensei, for the continuous support of my master thesis, for his patience, motivation,

enthusiasm, and immense knowledge. His guidance helped me in all the time of thesis

completion. Besides my advisor, I would like to thanks the Development Economics’

Joint Seminars Committee: Yamagata Tatsufumi Sensei and Kim Sangho Sensei, for their

encouragement and extensive feedback and comment during the presentation. My sincere

thanks also go to Vid Adrison, Ph.D., as Program Director of MPKP of University of

Indonesia, and to Muhammad Halley Yudhistira, Ph.D., Program Secretary, for their

insight and suggestions for my thesis.

Secondly, I would like to express my gratitude to the all faculty members at

Ritsumeikan APU as well as MPKP Program University of Indonesia, for invaluable

knowledge and shared experience. I send my appreciation to the entire staff in both

universities, who have been so helpful and cooperative in giving their support at all times

to help me achieve my goal. My highest appreciation also for Pusbindiklatren

BAPPENAS, who provides scholarship during my study in this field.

After that, I am grateful to all of those who support me during the data obtaining

for the thesis, my colleagues from MPWH, especially BPJT big family. Also, for the

member of JD 03 MPKP UI, it is pleasure to have known, learned, and discussed many

things while we were working together. For fellows DD APU’s awardee, having the

opportunity to experience and share this meaningful Beppu’s daily is such an extensive

process, I am honored. Not to mention for the classmates and common’s room group

member, thanks for fruitful conversation and shared experience during stressful thesis

deadline.

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 Lastly, nobody has been more important to me in the pursuit of this phase than the

members of my family. I want to thank my parents; whose love and guidance are with me

in whatever I pursue. My sister, Ana, and her family, Yogya’s family and the rest of my

big family, many thanks for the great support during the study. Most importantly, I wish

to thank my loving and supportive husband, Arief Sucianto, and my wonderful daughter,

Alissa Netania Arif, who provide unending inspiration and always believe with whatever

path I choose. I owe times and many things to both of you during this study completion.

This achievement is for you, dear.

Beppu, 14th June 2019

Alfi Hidayatul Rahmawati

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 Certification Page

I, Alfi Hidayatul Rahmawati (Student ID 51217625) hereby declare that the

contents of this Master’s Thesis are original and true, and have not been submitted at any

other university or educational institution for the award of degree or diploma. All the

information derived from other published or unpublished sources has been cited and

acknowledged appropriately.

Rahmawati, Alfi Hidayatul

2019/06/14

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 Chapter 1: Introduction

This chapter elaborates the background of the study, states the research question

and objective as well as the significance of the study and limitation to provide a basic

understanding of the research.

1.1. Background

The mobility of people in urban areas has increased in line with the country’s

development. As mobility increases, traffic demand also rises. Road infrastructures,

including toll roads, need to be developed to address this demand. Toll road development

is also intended to achieve equitable development to improve the efficiency of service

distribution to support economic growth, especially in high-level region development

(Sihombing, 2013).

One of the severe urban problems in many countries is the level of traffic

congestion. The standard strategy to combat traffic congestion is to rise the road capacity

or to invest in new roads development. However, the supply of new road often cannot

meet the increasing demand for vehicles who utilizes road’ transportation. Therefore,

those efforts have not equivalent to vehicle growth. The result is, congestion kept up

worsened.

The vehicles demand tends to increase as the new roads do exist. The situation

recurs until the costs of the added trip equal to the existing trip, create competition that

ends up in congestion (Arnott and Small, 1994). In the case of Indonesia, providing public

transportation infrastructure is less significant in reducing the congestion since the new

rail capacity attained short-term diversion to the private vehicle’s drivers. The current

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mass transportation infrastructure is still an unreliable means to support their mobility.

Furthermore, as the road users tend to be inelastic, they immediately fill up the traffic

after that short time diversion.

In the economical transportation concept, it is believed that the delivery of new

roads may decrease travel time, although it will increase vehicular traffic (Fields, Hartgen,

Moore, & Poole, 2009). Currently, the high growth of economic development and

urbanization have increased mobility and accessibility of people and service travel on toll

roads. However, the problem of congestion also may exist during toll payment in toll

booths, which induce higher fuel consumption and increase emission rate as a result of

slowdown vehicles speed and repeated stop and go (Demir, Bektaş, & Laporte, 2011).

The queue of vehicles when conducting payment in toll plazas cause a significant

problem of congestion in toll roads. The manual payment method often causes longer

transaction time because users wait for their change after payment. Therefore,

implementing a transaction mechanism device that eases the payment and reduces

transaction time is a must. To cope with the problem, the government introduces the use

of an automatic payment system which is widely known as ETC.

The ETC payment system enables technology communication device for toll

payment automatically at the toll road, as a part of the intelligent transportation system

(ITS) (Chen et al., 2007). The benefit of ETC is among others to eliminate queueing on

toll gates, improve the safety of public monitoring, and provide other significant impact

relate to more commercially operations (Golob & Regan, 2001). Compared to manual toll

collection (MTC), the implementation of ETC contributes to decreasing fuel consumption

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and emission because of reducing repeated stop and go driving (Bartin, Mudigonda, &

Ozbay, 2008).

The government of Indonesia issued the Ministry of Public Works and Housing

Regulation No. 16/PRT/M/2017 (MPWHR) regarding Electronic Payment System in Toll

Road, which stipulates four processes of toll road electronic payment system:

electrification, toll road integration, toll road integration with electronic toll collection

consortium, and multilane free flow (MLFF). The implementation of full electrification

stage has been conducting since October 2017, and by the end of 2018, the MLFF should

be applied. Nowadays, all toll road segments in Indonesia have been implementing the

full electronic payment system using tap and go card at the toll booths.

1.2. Research Question and Objective

The current traffic volume that tends to increase and generate congestion in toll

roads, especially at the toll plazas during payment, need further investigation. This study

seeks to analyze to what extent the implementation of ETC as a technology-based solution

and a method for curbing congestion in toll gates affects transport system efficiency, and

raises the question, “How does ETC deployment affects transport system efficiency in

Indonesia?”

1.3. The Significance of the Study

Theoretically, the findings of this study offer contribution to the existing literature

on the transport system and policy, particularly in developing countries. Furthermore, the

result of this study will provide information for policymakers to consider further and

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conduct adapted strategies to speed up ETC deployment and control traffic flow, to

achieve a better quality of service at toll roads.

1.4. Limitation

This research is limited to observe 75 locations of toll gates from 27 toll road

segments in Indonesia, during 20 months period from January 2017 to December 2018.

This research focuses on the transaction time at toll gates for individual transactions

observed during the period, as mentioned earlier. Subsequently, this research is limited

to the occurrences on toll plazas during transaction time, starts when the vehicles stop in

toll gates to make toll payment until they pass through the gates and drive. The queuing

time before the toll payment and other activities after pass the gates are excluded from

the study.

1.5. Research Outline

Introduction: This chapter will describe the background of the study, the research

question, and the objective. Included in this chapter is also the significance of the study

and its limitations.

Literature Review: This chapter will describe the initial conceptual term for this

study. Previous studies related to the terminology and keywords that are used in this study

will be further elaborated in this chapter to present the research gap.

Methodology: This chapter will elaborate on the data source and the empirical

model that will be used in this study. Furthermore, a description of the area study and

methodology that is utilized will be presented here.

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 Result and Discussion: This chapter will analyze the gathered data by using panel

data regression with Stata software. The results and findings from the aforementioned

quantitative approach will be discussed and presented in this chapter.

Conclusion and Recommendation: This chapter will conclude the study, as well as

provide a policy recommendation. Moreover, this chapter will suggest further routes of

research to follow up on the finding of the study.

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 Chapter 2: Literature Review

The research question and objective that stated in the previous chapter appertain to

this study will encompass analysis of a range of literature reviewed in this study that

focuses on ETC and transport system efficiency from previous research.

2.1. Transport System Efficiency

Previous transport efficiency researches have focused on three aspects, namely

economic, environmental, and social equity (Hall, 1995; Litman 2007; Richardson,

2005). To measure those three aspects of efficiency, the researchers have proposed many

studies. Litman (2008) and Jeon, Amekudzi, & Guensler (2010) presented comprehensive

indicators to achieve the aspect of sustainability transportation. Ramani suggested five

ideal to pertain sustainability over toll road; congestion reduction, safety enhancement,

economic opportunity expansion, air quality improvement, and transportation assets

value increasing. Richardson (2005) found a relevant field for toll road sustainability

monitoring: safety, congestion, fuel consumption, vehicle emissions, and accessibility.

The discussion of accessibility has been conducted for a long time ago in the area

of transportation planning. Levinson (2004) studied four cluster area to measure the

efficiency among others are mobility, utility, productivity, and accessibility. By justifying

of the usage, each of the measurement has its strength and weakness in estimating the

transport system. Accessibility refers to the easiness of arrived at the destinations or of

actively involved to participate rather than moving from one place to another easily along

the network (El-Geneidy & Levinson, 2007).

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 In the context of this study, accessibility means faster and easier toll payment. In

Indonesia, as enacted in the Ministry of Public Work decree No. 392/PRT/M/2005, the

toll operators should fulfill the Minimum Service Standard (MSS) at toll roads. The MSS

parameters that should be achieved at toll roads include the physical condition of the toll

road and the service provided to the user. Including in providing the level of service is

the accessibility that is measured using indicators of transaction time in the gates, open

or closed gate system, and length of queueing. The values of these parameters are

routinely evaluated using direct field surveys in order to maintain or increase the level of

service.

2.2. Electronic Toll Collection

In 1978, Indonesia began the toll road history as the 59 km Jagorawi toll road has

been operating, which connects Jakarta, Bogor, and Ciawi. The progress of toll road

delivery in Indonesia is relatively slow; as recorded by 2007, the length of toll road

operated is only 553 km. Restarting in 2002, the acceleration of toll road development

began by inviting the participation of the private sector through the Public-Private

Partnership (PPP) initiative. Until 2016, a total of 33 toll road segments has been

operating with 980 km length in total (Badan Pengatur Jalan Tol, 2016).

The increased supply of toll road cannot fulfill the high demand due to the

increasing number of vehicles. This condition leads to unpredictable traffic congestion in

toll roads, especially in Jabodetabek area. Heavy toll road congestion has become one of

the significant urban problems for many countries worldwide (Zavitsas, Kaparias,

Tomassini, 2010).

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 A new technology-based system that proposed to be the solution for toll road

congestion and to meet the demand for the expansion of current toll road systems, called

ETC, is started to be implementing. ETC is a recent innovation that prospective users

consider due to its simplicity (Purnama, 2012) with the use of electronic payment using

a smart card in toll roads, bridges, and tunnels (Haan & Zoomers, 2016). The integrated

function of ETC card was first introduced in Norway for toll payment, parking, and gas

(Gabriel, 2008). Previous researchers have found that ETC implementation provide

advantages, some of them include reducing congestion in toll gates, decreasing queueing

and eases traffic flow, as well as reducing consumption vehicle’ fuel since the vehicles

do not have to frequently conduct stop and go driving while paying the toll (ITS

Technology Enchantment Association, 2003). A given example of ETC implementation

system by Worrall (1999) which is known as E-Pass, has decreased the emission of

vehicles, eased traffic flow, and provided a better opportunity to interact with users.

Using the ETC system, hindrances in manual toll collection (MTC) will be reduced,

thereby achieving more efficient transaction time, as this minimizes human error and

technical difficulties (Al., 2011). The new implemented ETC system reduces both the

delay and also the number of operator staff in toll gates (Levinson and Chang, 2002). The

extensive ETC deployment has had considerable leverage in toll road practice, because

of its flexibility in affecting the behavior of travel user (Worrall, 1999).

Prior studies have identified many functions of ETC in toll road. These include

provide a significant part in management of infrastructure and provision of traveler

information (Aguado, Echebarria, & Barrutia, 2011), a part of the prospected

development trends (Liu, Sang, & Wu, 2017), an irreplaceable function to eliminate

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congestion and decrease traffic accidents (Huang, Wei, Guo, & Cao, 2017), offers

comprehensive measure to traffic demand understanding (Kim, Kurauchi, Uno, Hagihara,

& Daito, 2014) and a method that provide time effectiveness of travel time benefit (Hall,

1995).

2.3. Transport System Efficiency and ETC

Studies of ETC deployment to transport system efficiency have been conducted

using different dimensions of efficiencies. In San Fransisco, a study was conducted to

investigate the effectiveness of toll pricing policy during peak hours in toll roads using

the quantitative method, Different in Different and Regression Discontinuity, with traffic

volume and delay time as dependent variables. The findings indicate that the changing

policy reduces traffic volume in observed locations during peak hours (Foreman, 2016).

In 1995, Portugal utilized ETC system as the first country that employed the same

and single payment system for all toll road in the country (Coelho, Farias, & Rouphail,

2007). Coelho et al. (2007) conducted study on how to calculate the quantification

impacts of toll facilities (traffic demand, service time, and service type) and system

performance variables (stops, queue length, and emissions) of traffic volume and

emission on toll roads corridors in Lisbon, and found that 61–80% CO2 reduction could

be achieved by entirely changing from MTC to ETC. A study conducted in Orlando

summarizes how the ETC implementation contributes to the significant improvement of

the increasing of lane capacity, decreasing service time, and reducing maximal queuing

time in toll plazas (Al-Deek, Radwan, Mohammed, & Klodzinski, 1996).

The method of the design construction and measurement of vehicle emissions

become the focus of current researchers. Tseng, Lin, & Chien (2014) studied CO2

9
estimation emissions, transaction times, and externalities caused by traffic volume at the

four northern-central highway toll plazas in Taiwan and found significant advantages

regarding external costs in transaction time. Pérez-Martínez, Ming, Dell’Asin, & Monzón

(2011) conducted a research to compare effect of three kind toll payment system to fuel

consumption and consequent CO2 emissions in Spain and found that the energy efficiency

has correlated with the type of toll payment system used in toll plazas and, therefore, it is

suggested to implement free flow for further method of payment for tolling. In Turkey, a

conducted study used traffic emission estimation according to traffic volume and

calculated fuel consumption and found that technology innovation and traffic demand

decreasing contribute to emission reduction (Ozan, Haldenbilen, & Ceylan, 2011).

The precursory studies of the literature review are narrowed down to three primary

relevant sources, as shown in the table below.

Table 1 Summary of Literature Review

Author Objective Methodology Variable Result

Foreman, Toll Pricing DiD and Traffic Policy Changes
2016 Effectiveness Regression Volume, reduce traffic volume
Discontinuity Delay Time in peak hour
Design
Tseng et Impact of Manual Transaction ETC lane contributed
al., 2014 ETC to the comparing time, to reducing
external cost primary data emission transaction time and
rate, external CO2 emission
cost
Al-Deek et Evaluated Experimental Service time, Technology
al., 1996 traffic design using queuing line intervention
operation before after contributed to
after using treatment improving toll road
ETC capacity and increased
service delivery

Source: Author Summary

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 Chapter 3: Methodology

A description of the research design, data source, research site, as well as data

collection and analysis, are presented in this chapter. In responding to the research

question, this study utilizes a quantitative approach that will be elaborated in chapter. n

3.1. Research Design

The quantitative method of panel data regression analysis uses data from the

officers, as mentioned above, was conducted for this study. The dependent variable is the

average transaction time in the toll gate, which we refer as "transaction time." The

assumption is that unobservable factors that might simultaneously affect the left-hand,

and right-hand size of the regression are time-invariant. There are transaction time data

for before and after ETC deployment, wherein the before and after concept will offer

some insight to a particular model of panel regression. We use the selected approaches to

capture the change effect of the policy intervention around the introduction date using

considered variables.

The basic framework for this discussion is a regression model that is explained by

Greene (1997). According to Greene, the favorable key position of using a panel data set

compares to a cross-section is that the panel set will enable the researcher great flexibility

in constructing different individual behavior. The regression model based on the

following specific form

yit = αi+ β’xit + εit

The effect for the individual αi is constant over t time and specific in cross-section

unit i. Two basic frameworks could be generalized for this model, the fixed effect and

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random effect, which had been considered for this study. To estimate the effect of the

ETC deployment, we use this following testable empirical model:

TransTit= α+β1(Intvni)+β2(Autoi)+β3(LogAvgi)+β4(Topupi)+ε

Where TransTit represents our outcomes and the dependent variable of average

transaction time in toll gate. αis the effect of the policy intervention of ETC deployment

using β dummy variable of before and after implementation; Autoi is time-varying

controls such as the number of electronic toll gates; Topupi is top up gates existence;

LogAvgi is log average daily traffic, and ε is an error term. That regression model is the

basic model that is used in this study.

Samples from January 2017- December 2018 are used for baseline regression.

Assigned dummy variable of sample specification, this study seeks to examine the

sensitivity of the treatment to a different specific sample.

3.2. Data Source

Data for this research will be taken from the Indonesia Toll Road Authority (ITRA),

the toll road regulator in the country. The data are modified from the Monthly Self-

Assessment Report from all Toll Road Operators, and data of Minimal Service Standard

(SPM) from ITRA. Monthly Self-Assessment Reports are submitted to ITRA as

stipulated in Head of ITRA Circular Letter Number 01/SE/P/2017 on 23 January 2017.

The assessment is arranged based on the Guidebook of Self-Assessment as attached at

the letter.

Minimum Service Standard (MSS) is a necessary service quality that has to be

achieved by toll road operators. The parameters of MSS include road conditions, average

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travel speed, accessibility, mobility, safety, rescue facilities/ rescue units and rescue

assistance, and rest area and environment.

The following table provides information about variable and data source that are

used in this study.

Table 2 Variables and Data Sources

No Variable Required Data Data Source How to Obtain the

Data
1. Transaction Average transaction 75 sample site toll gate Secondary data of
Time time in each of toll location Minimal Standard
Transit gate location before Service Report from
and after treatment ITRA

2. Intervention When the Ministry of Public Secondary data from

Intvni implementation of Works and Housing ITRA
fully ETC is started, Regulation No.
dummy variable 16/PRT/M/2017
(MPWHR) regarding
Electronic Payment
System in Toll Road
3. Number of Number of GTO 75 sample site toll gate Secondary data from
Automatic operated in each toll location ITRA
Toll Gate gate location
(GTO)
Autoi
4. Existing of Whether the top up 75 sample site toll gate Secondary data from
TopUp Gate gate is existing in the location ITRA
Topupi location, dummy
variable
5. Average Monthly daily traffic 75 sample site toll gate Secondary data from
Traffic who pass through a location ITRA
LogAvgi certain toll gate
divided by the
number of days in a
month, log variable
6. Open and Whether the toll gate 75 sample site toll gate Secondary data from
Closed Gate utilizes open or location ITRA
System closed transaction
system, dummy
variable
Source: Author summary

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3.3. Research Site

As a part of the national highway network, toll road refers to a public road in which

in utilize it, and the user is subjected to pay a certain amount of fee that is called as toll

payment. It is essentially an alternative to non-toll roads, in which road users save travel

time, as well as provide better service compared to that of using non-toll roads. Such an

advantage is at the expense of additional costs, where non-toll road users are exempted

from tariffs.

The toll payment is appointed per kilometer based on the type of vehicle. The toll

amount is set by the Ministry of Public Works and Housing (MPWH). Once every two

years, as part of the investment component, the toll tariffs were adjusted based on local

inflation. There are two types of toll road gate system; they are the open transaction

system and the closed transaction system. The open transaction system means the users

make toll payment transactions when entering the toll gate and conduct no other

transaction while leaving the road. Meanwhile, in the closed transaction system, users

require to perform twice transaction, taking a card when entering the gate and conduct

toll payment when leaving the road.

Recently, the growth of toll road development is very high, now with 44 road

segments in operation. However, as the toll road supply increases, the demand for

vehicles also rises, which causes congestion, especially in the capital city of Jakarta and

its surrounding areas. Since options for public transport are limited, commuters tend to

use private vehicles as their main mode of transportation and choose toll roads as primary

roads. Based on data from ITRA, there are five toll roads with the highest traffic volume,

namely Jakarta-Cikampek, Jakarta-Bogor-Ciawi, Jakarta-Tangerang, Cawang-Tomang-

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Pluit (CTC), and Surabaya-Gempol (Badan Pengatur Jalan Tol, 2018). Four out of five

corridors connect Jakarta to the surrounding areas or known as the Jabodetabek Area.

Meanwhile, Surabaya-Gempol toll road is located in Surabaya, the capital city of East

Java Province, which is the second largest city in Indonesia after Jakarta.

3.4. Data Collection and Analysis

This research focuses on toll gates that operated from January 2017 to December

2018. The data are secondary data gained from ITRA.

Table 3 Toll Roads Observed in this Study

Firstly Length
Toll Road Segment Location
No Operated (km)
Trans
1 Belawan - Medan - Tanjung Morawa 1989 43
Sumatera
2 Tangerang - Merak Trans Jawa 2002 73
3 Jakarta - Tangerang Trans Jawa 1984 33
4 Prof. Dr. Ir. Sedyatmo Jabodetabek 1985 14,3
5 Cawang - Tomang - Grogol – Pluit Jabodetabek 1987 23,55
Cawang - Tj. Priok - Ancol Timur - Jbt.
6 Jabodetabek 1989 27,05
Tiga/Pluit
7 JORR W1 Jabodetabek 2010 9,85
8 JORR W2 Utara Jabodetabek 2013 7,87
9 Pondok Aren - Ulujami Jabodetabek 1999 5,55
10 Serpong - Pondok Aren Jabodetabek 1999 7,25
11 JORR (W2S - E1 - E2 - E3) Jabodetabek 2007 31,12
12 JORR Seksi S Jabodetabek 1995 14,25
13 Jakarta - Bogor - Ciawi Jabodetabek 1978 59
Cinere-Jagorawi (SS Cimanggis-SS Raya
14 Jabodetabek 2012 3,5
Bogor)
Non-Trans
15 Semarang Section A, B, C 1983 24,75
Java
16 Jakarta - Cikampek Trans Java 1988 83
Non-Trans
17 Cikampek - Purwakarta - Padalarang 2005 58,5
Java
Non-Trans
18 Padalarang - Cileunyi 1991 64,4
Java

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 19 Cikampek-Palimanan Trans Java 2015 116,75
20 Kanci - Pejagan Trans Java 2010 35
21 Surabaya - Gempol Trans Java 1986 49
22 Surabaya - Gresik Trans Java 1993 20,7
Trans
23 Ujung Pandang Section I and II 1998 11,6
Sulawesi
Trans
24 Makassar Section IV 2004 6,05
Sulawesi
Non-Trans
25 Waru - Bandara Juanda Interchange 2008 12,8
Java

26 Surabaya-Mojokerto Section 1A and 4 Trans Java 2011 20,36

Non-Trans
27 Bali Mandara 2013 9,7
Java

Source: ITRA, modified

The expected data obtained here are 1) transaction time, 2) the number of automatic

toll gates that are operated in the toll gates location, 3) the average traffic, and 4) the

existing top-up gate. Transaction time is how long it takes for each vehicle to make

payment. The number used for this research is the average time from when the toll road

user taps the electronic money to the machine until the barrier opens. The number of

automatic toll gates (GTO) means how many automatic toll gates were in operation in

each gate locations during the months of observation since the number of operating GTO

varies every month. The average traffic is the number of vehicles that pass-through toll

gates, obtained by the sum of vehicles that pay in toll gates per month, divided by the

number of days of that month. Finally, the existing of top-up gate refers to whether there

is a top gate that exists at the toll gate locations, as not every toll gate has a top up gate.

The variables are considered to build a model for the study and to support the

primary variable for the dummy intervention of ETC implementation. The dummy

variable of sample classification is also included in the calculation to further understand

the impact of the policy implementation of different sample type.

16
 The following figure is the flow chart of the research. Obtained secondary data will

be analyzed using a quantitative panel regression method to find the fitted model which

could correctly describe the situation. We will use the chosen model to analyze the results

further and to develop discussions within the scope of the study.

Figure 1 Research Flowchart

Vehicle Demand Road Supply

Traffic Congestion

Study Area Secondary Data

Panel Regression Analysis

Conclusion and
Recommendation Policy Intervention

17
 Chapter 4: Results and Discussion

The primary purpose of this study is to analyze how ETC deployment affects

transport efficiency by studying Indonesia toll road networks. In order to achieve this

objective, the methods described in the previous chapter had been utilized. This chapter

presents results and findings from the data as mentioned above, which is processed using

Stata software, for further discussion using previous researches in the literature review.

4.1. Electronic Toll Collection in Indonesia

The toll payment system in Indonesian toll roads uses fare per kilometer, and the

amount depends on the type of vehicle. Every two year, the MPWH evaluate the tariff

and set tariff adjustment based on inflation. There are several types of toll payments

employed in Indonesia, among others are cash and ETC. Between those two types of

payments, the users tend to choose cash payment as the standard method.

The ETC using two kinds of systems, the first one is semiautomatic, and the other

one is fully automatic types. Toll Road in Indonesia uses a semi-automatic system in

which vehicle must stop to tap the smart card on ETC device during toll payment and

waiting until the gate is open. In other countries where ETC system using fully automatic

type, the vehicles do not have to stop because the transaction payment is conducted using

a particular device that is installed in the vehicles and connected to the other devices on

the gates wirelessly.

Until early 2017, MTC payment using cash is the primary payment method in

Indonesian toll road, both for the open transaction system and the closed system, which

generates traffic accumulation while queueing in toll booths for toll payment, resulted in

18
severe congestion, especially in the urban area. ITRA as the toll road regulating body in

Indonesia has initiated and supported the implementation of ETC in some toll road

corridors, the first pilot project for this initiative is in Jakarta Intra Urban Toll Road

(JIUTR). By October 2017, the government scheduled to deploy full ETC in all toll gates.

The typical utilized ETC in Indonesia is prepaid smart card, often referred to a chip card,

or an integrated circuit card (ICC). The smart card is defined as a pocket-sized card (or

smaller) with an integrated circuit embedded in it (Saraswati et al., 2005). In selecting

financial institution partner for toll payment management, the government offers freedom

to toll road operators. The operators can choose which institutions suited best with their

requisite need. The most important consideration is they could provide the best service to

the users for employing ETC system.

Figure 2 Progress of ETC Implementation in Indonesia Toll Road Network

100%
100%

80%

59%
60%

40%
28% 29% 31%
25% 26% 26% 27%
23% 22%
20%

0%
Jul-17
Feb-17

Mar-17

Apr-17

May-17

Aug-17
Dec-16

Sep-17

Oct-17
Jan-17

Jun-17

Source: Indonesia Toll Road Authority, modified

19
 The early roadmap of electronic payment in the Indonesia toll road network was

first initiated in 2008, in which the toll road operators signed the memorandum of

understanding with State Owned Bank Association (Himbara) regarding the development

of the electronic payment system during the 2008-2018 period. However, during 2008-

2016, only limited toll roads implemented the electronic payment system. By 2016, it was

recorded that the percentage of toll gates that utilized e-payment increased to 23 percent,

and gained a slight increase to 31 percent in August 2017.

By September 2017, the e-payment system reached a significant percentage at 51

percent, after the MPWH regulation regarding ETC was enacted. The regulation

stipulates that 100 percent of ETC deployment has to be achieved by the 31st October

2017, and all toll road operators have to utilize the ETC system in all their toll gates.

The table shows the GTO percentage to manual toll gates and penetration of toll

road users using ETC. From the table it is concluded that the percentage of GTO is varied

for every toll road segment, and so does the ETC penetration. The highest percentage of

GTO compared to the manual toll gate is in Jakarta Outer Ring Road W2 corridor, at 64

percent. The ETC penetration reached the highest percentage in the Semarang ABC toll

road segment in which it achieved 56 percent from total transaction instead the GTO

percentage was only 36 percent. There are toll road segments that have a zero percentage

of GTO but reached a certain number of percentage of ETC, among others, are in the

following corridors: Gempol-Pasuruan Section A2, Cikampek-Palimanan, Waru-Juanda

Airport Interchanges, Makassar Section 4, Pondok Aren-Serpong, and Ujung Pandan

Section 1 and 2. The penetration of ETC user nonetheless there is no GTO means that the

gates using hybrid operation in which the manual toll collection was conducted by

20
operator staff; and the users pay toll by using a smart card; thus the staff will swipe the

card to the EDC machine. The interesting fact was that in the Pondok Aren segment, the

number of ETC users were very high reached 36 percent although GTC gates have not

been operated. The situation might reflect that the acceptance of users to shift from

manual payment to the smart card is quite high.

21
 10%
20%
30%
40%
50%
60%
70%

0%
Jakarta - Bogor - Ciawi 50%
24%
Semarang Seksi A,B,C 39%
35%
Jakarta - Tangerang 37%
42%
Prof.Dr.Ir.Soedijatmo 43%
39%
Cawang - Tomang - Pluit… 48%
44%
Surabaya - Gempol 31%
18%
Jakarta - Cikampek 45%
25%
Belawan - Medan -… 56%
23%
Cawang - Tj. Priok -… 0% 37%
Padalarang - Cileunyi 58%
23%
Cikampek - Padalarang 53%

Source: Indonesia Toll Road Authority, modified

13%
Surabaya-Gresik 12%
10%
JORR S 23%
29%
Palimanan - Kanci 52%
10%
Ujung Pandang Seksi 1… 0% 6%

22
Pondok Aren - Bintaro… 57%
48%
JORR NON S (Rorotan -… 53%
27%
Pondok Aren - Serpong 0%
40%
Tangerang - Merak 24%
16%
Makassar Seksi IV 0%
6%
Simpang Susun Waru -… 0% 12%
Persentase GTO

Jembatan Surabaya-… 0%
0%
Penetrasi E-Payment

Kanci - Pejagan 40%

14%
JORR W1 (Kebon Jeruk -… 21%
41%
Semarang-Solo Seksi I… 36%
58%
Surabaya - Mojokerto… 0%
0%
Bogor Ring Road Seksi I… 33%
27%
Figure 3 Comparison of GTO Percentage & ETC Penetration in Toll Road per June 2017

Cinere-Jagorawi 44%
22%
Nusa Dua-Ngurah Rai-… 55%
13%
JORR W2 Utara (Kebon… 64%
37%
Kertosono - Mojokerto… 0%3%
Gempol - Pandaan 42%
0%
Cikampek-Palimanan 0%
18%
Pejagan - Pemalang… 50%
21%
Gempol - Pasuruan… 0%
0%
4.2. Results

4.2.1. Data Description

This study estimated data before and after treatment of ETC to transport

efficiency in toll road networks in Indonesia. There are 44 toll road segments in

Indonesia, which has been operating as of 2017. However, regarding the limitation

of data availability, this study utilizes the observation of 75 toll gate locations from

27 segments within 20 months. Most of the unutilized toll gates no longer exist

because of integration programs; therefore, data during time observations are

incomplete.

Table 4 Research Data Description

Std
No. Variable Observation Mean Min Max
Deviation
Transaction
1 1480 2,3672 1,1938 1,02 7,2
Time
Dummy
2 1480 0,5432 0,4986468 0 1
Intervention
Log Average
3 1471 10,0506 0,6553 8,2705 11,9726
Daily Traffic
4 Number of GTO 1480 7,9932 6,724 0 40
5 Dummy TopUp 1480 0,4848 0,4999 0 1

Data Source: Author Calculation

Statistical data shows the highest traffic occurred in Ramp Cikarang Utama

gates on July 2017, because of the homecoming ritual during Moslem Eid Holiday.

Cikarang Utama Ramp is a toll gate that connects traffic from the Jabodetabek toll

road network to another Java toll road network. All vehicles from the Jabodetabek

23
pass through the gates before entering another toll road network. Therefore, for

transaction time, the highest is Tanjung Morawa Ramp on January 2017, located at

Belawan-Medan-Tanjung Morawa Toll Road Corridor in North Sumatera Province,

in which average transaction time is 7.2 seconds. In contrast, the fastest toll gates

are in Cawang and Kuningan. These two toll gates are part of JIUTR that connect

Bekasi and Tangerang city to the central business in the Jakarta metropolitan area.

Moreover, the highest number of GTO is in Cikarang Utama ramp, in which

there are 40 toll gates operates on December 2017 to August 2018. On the other

hand, the least GTO operates located in 4 toll gates, namely Cikupa Entrance

Merak, Tamalanrea, Parangloe, and Kaluku Bodoa toll gates, they are located in

Tangerak-Merak, Makassar Section IV, and Ujung Pandang Section I&II Toll Road

segment, respectively. The zero number GTO operates for Cikupa Entrance was in

January to March 2017, whereas for Tamalanrea, Parangloe and Kaluku Bodoa, it

was from January to September 2017. Therefore, those last three toll gate location

had not utilized GTO before fully ETC deployment on October 2017.

4.2.2. Regression Analysis

The following table 4 shows, panel data regression results using some model

specification. The fixed effect model (FEM) is chosen after we conduct estimation

using several models, namely Partial Least Square (PLS), random effect model

(REM), and fixed effect model using the same dependent and independent variable.

After choosing the FEM, heteroskedasticity, and autocorrelation problems were

24
found. Afterward, the researcher conducted a robustness test and used the FEM

Robust as the final result of the panel regression.

The estimation was conducted to predict the transaction time (measured in

seconds) using policy intervention, number of GTO, existing top-up gate, and log

average daily traffic variables. A regression equation was found F(4,74) = 60.36,

p<.000, R2 of .240. It was predicted that the transaction time is equal to 2.918 -

.935(policy intervention) - .051(number of GTO) - .312(existing top up) + .051(log

average daily traffic), in which policy intervention is coded as 1 = after

implementation and 0 = before implementation; number of GTO is measured in

unit; top up is coded as 1 for existing top-up gate and 0 if otherwise; and log average

daily traffic is measured in unit. When the policy intervention of ETC deployment

Table 5 Panel Data Regression Results

Dependent Variable Transaction Time in Toll Gate (seconds)

PLS RE FE FE Robust

Main Independent
Variable Policy -1.352*** -0.964*** -0.935*** -0.935***
Intervention
(-20.85) (-22.20) (-21.46)
Number of Automatic
0.0268*** -0.0452*** -0.0508*** -.050782**
Toll Gate
(5.33) (-9.00) (-9.88)
Log Average Daily
-0.228*** 0.0713 0.0512 .05116584
Traffic
(-4.79) (0.97) (0.63)
Existing of TopUp Gate -0.253*** -0.310*** -0.312*** -.31192164***
(-4.00) (-6.59) (-6.62)
Constant 5.300*** 2.722*** 2.918*** 2.9181307**
(11.39) (3.66) (3.56)
Number of Observation 1471 1471 1471 1471
Number of ID 75 75 75 75

25
 R-squared 0.3378 0.2520 0.2396 0.2396
P Value 0.000 0.000 0.000 0.000
Note: Level of Significance 0.01 (***), 0.05% (**), 0.1% (*); Robust Standard Error in
parenthesis

Source: Author calculation

is implemented, the transaction time is expected to decrease by 0,935 seconds,

cateris paribus (p<.000). Moreover, for one unit increase in GTO number, it is

expected that the transaction time will decrease by 0.051 seconds. The existing of

the top-up gate in toll plaza will reduce the transaction time by 0.312 seconds,

holding all other variables constant (p<.000). However, transaction time increase

by.051 seconds every 1000 rise of average daily traffic (p<.000; cateris paribus).

Given that ETC not yet implemented, increased zero number of GTO, top up gate

does not exist, and average daily traffic is stagnant, each vehicle needs 2.918

seconds average time to pay toll at the gates.

The regression result for FEM and FEM Robust are relatively similar,

showing that the primary independent variable is significantly and negatively

correlated with the independent variable. The dummy intervention of ETC

deployment significantly has a negative correlation with the transaction time in all

specification models, with the .01 level of confidence. Dummy Top Up also

consistently has a negative correlation with transaction time within all model

specifications. Meanwhile, there is only one variable that shows a positive

correlation with the dependent variable in all model, which is log daily average

traffic. The number of automatic toll gates indicates negative relation in REM,

FEM, and FEM Robust, but shows positive correlation in the PLS model.

26
 From the regression results, it can be concluded that factors that significantly

affect the accessibility of transaction time in toll booths using FEM robust data

estimation. The estimation shows that variable intervention statistically has a

negative correlation to transaction time and that ETC deployment affects in cutting

transaction time. Implementing ETC will reduce the transaction time by 93.5

percent with the .01 percent level of confidence. When all toll gates operate ETC

system, toll road users will use less time when making payment. The problem of

waiting during the exchange when using cash payment can be avoided. Therefore,

the payment service will be more effective. We conclude this condition as gaining

efficiency in term of accessibility.

The negative correlation between ETC implementation and curbing

transaction time has been examined in previous research on how ETC correlated

with transaction times and externalities incurred by vehicular traffic at four toll

plazas on the northern-central highway in Taiwan and found significant benefits

regarding external costs in transaction time due to ETC implementation (Tseng et

al., 2014). According to the study, switching from manual line to the ETC line has

been relatively effective in decreasing transaction time and contributes to reducing

the external cost by 60 percent.

The variable number of automatic toll gates statistically has a negative

correlation with transaction time. The increasing number of automatic toll gates has

been operated can contribute to reducing transaction time by 5 percent. When the

number of toll gates increases, toll road users will get faster service when

conducting payment, because they only need to tap the card to the machine and

27
continue on their way. This method is much easier than paying at the toll using cash,

in which, often, users must wait for their change while paying.

Variable of the top up gate is a significant predictor for transaction time. The

current top-up gate in toll booth location contributes to the reduction in transaction

time to 31 percent, in comparison to those without a top up gate. If the top up gate

is available, toll users could reduce the probability of delay time when the card is

dysfunction or the money in the prepaid card is running out. Thus, the transaction

time could be conducted without delay.

4.2.3. Regression Analysis with Open and Closed Gate System Dummy

Variable

A regression analysis using the dummy variable of an open transaction system

(code 1) and a closed transaction system (code 0) has been conducted to investigate

the sensibility of how the ETC deployment affects transaction time using this

variable. We included the open and closed dummy variable to understand whether

the ETC implementation impact differently to transaction time by using that dummy

variable. This variable is important to anticipate the future implementation of toll

road integration in which could probably change the gate transaction system to

further achieving free flow traffic movement.

First, we added a dummy variable in the regression model in the previous

section in order to capture the impact of open and closed gate system to the

dependent variable. The multiple fixed effect regression is conducted to predict

transaction time based on policy intervention, the number of GTO, existing top-up

gate, log average daily traffic, and type of gate system. A significant regression

28
equation was found F(5,1391) = 536.31, p < .000, with R2 of .302. The predicted

transaction time is equal to 3.075 – .940 (policy intervention) – .043 (number of

GTO) – .267 (top up) - .270 (gate system) + .050 (log traffic), where policy

intervention is coded 1=after implementation 0=before implementation; number of

GTO is measured in unit; the top up is coded at 1=top up gate exist and 0=do not

exist; the gate system is coded as 1=open and 0=closed; and log average traffic are

measured in unit. Transaction time decreased by .043 second for each additional

unit of GTO, after policy intervention reduced transaction time by .940 second than

before implementation; existing up top up gate cut transaction time by .267 second,

compared to non-existing top up gate; open type gate system curbed transaction

time with .270 second than closed gate system; and 1000 unit increase of traffic

volume contributed to an additional .050 second transaction time.

Table 6 Regression Result with Added Dummy Variable

Dependent Variable Transaction Time in Toll Gate (second)

FE

Main Independent Variable Policy Intervention -.93893289***

Number of Automatic Toll Gate -.0436***

Log Average Daily Traffic .0495
Existing of TopUp Gate -.2669***

Open and Closed Gate System -.27***

Constant 3.0755***

Number of Observation 1471

Number of ID 75
R-squared 0.3016
P Value 0.000

Note: Level of Significance 0.01 (***), 0.05 (**), 0.1 (*); Robust Standard Error in
Parenthesis

29
Source: Author Calculation

The findings are also consistent with the previous estimation before adding a

dummy variable of the gate system in which the IV have the same correlation to

affecting the DV. However, the statistical significance remained almost unchanged

(p<.000), the estimation result of adding dummy gate system showed that IV policy

intervention, number of GTO, existing top-up gate, and open system gate were

significant predictors for transaction time. On the other hand, the log average daily

traffic was statistically limited predictors.

When estimated the policy intervention and open gate system to predict the

transaction time, we found an interesting result. A regression equation of F(2, 1403)

= 1227.59, p<.000 and R2 is .400. The transaction time is equal to 3.511-

1.241(policy intervention) -.574(open gate system), where 1 and 0 are code for after

and before policy implementation, respectively; and 1 for open gate system and 0

if otherwise. Transaction time decline by 1.241 seconds if ETC is deployed and

ease by .574 seconds when the type of gate is an open system, in which p<.000, and

holds others variable constant. Therefore, the interaction between policy

intervention and open transaction is good combination to cut the transaction time.

Table 7 Regression Result of Policy Intervention and Open Gate System

Dependent Variable Transaction Time in Toll Gate (second)

FE

Main Independent Variable Policy Intervention -1.2414496***

Open and Closed Gate System -.57416538***

Constant 3.5114241***

Number of Observation 1480

Number of ID 75

30
 R-squared 0.4004
P Value 0.000
Note: Level of Significance 0.01 (***), 0.05 (**), 0.1 (*); Robust Standard Error in
Parenthesis

Source: Author Calculation

Furthermore, another prediction of transaction time is conducted using policy

intervention and log average daily traffic. A regression equation of F(2,1394) =

1111.63, p<.0000 and R2 is .312. the transaction time is equal to 2.565 –

1.358(policy intervention) +.053(logaveragetraffic), where 1 is after policy

implementation and 0 is before the implementation; and average daily traffic is

measured by unit. Transaction time is declined by 1.358 seconds if ETC is

implemented compared to non-existing policy. Meanwhile, the transaction time

rises by .053 second for every 1000-unit increasing of traffic, p<.000, cateris

paribus. The result explains that when policy intervention of ETC deployment is

conducted, transaction time could reduce by that number of seconds and the

increasing of traffic demand has limited impact to rise transaction time. Therefore,

the increase of traffic demand might result in the bottlenecking after entering toll

booths and also might cause longer queuing line.

Table 8 Regression Result Policy Intervention vs Log Average Daily Traffic

Dependent Variable Transaction Time in Toll Gate (second)

FE

Main Independent Variable Policy Intervention -1.3583507***

LogAverageDailyTraffic .05360201

Constant 2.5653586***

Number of Observation 1471

Number of ID 75
R-squared 0.3121

31
 P Value 0.000
Note: Level of Significance 0.01 (***), 0.05 (**), 0.1 (*); Robust Standard Error in
Parenthesis

Source: Author Calculation

Lastly, we conduct regression with each of the variables in the model. A

simple linear regression was estimated to foresee transaction time based on policy

intervention implementation. A significant regression equation was found

F(74,1404) = 45.34, p < .000, with R2 of 0.319. The predicted transaction time in

toll gate is equal to 3.109 – 1.365 (policy intervention) second when the intervention

is applied. Transaction time decrease by 1.365 seconds if policy intervention is

applied. This finding is similar to the result of multiple linear model that has been

discussed previously.

Another regression was conducted to predict transaction time on the number

of GTO. A regression equation was also found (F(74, 1404)) = 43.04, p < .000, with

R2 of .027. Predicted transaction time in toll gate is equal to 3.622-0.157 (the

number of GTO) second when the number of GTO increased. Transaction time

decrease by .157 second if the number of GTO increase. This research has indicated

the same result to the estimation with multiple regression using this variable.

4.3. Discussion

The estimation results show low R square, although the p-value is also small.

The findings indicate that there is a real relationship between the significant

predictors and the response variable. In the case of this study, there could be an

inherently higher amount of unexplainable variability. Unpredictable condition of

32
variables utilized in the study could end up on this result. Additional predictors

might increase the explanation power of the model used in this study.

The transport system and policy are complex fields. However, to simplify that

one treatment could eliminate problems of congestion is too ambitious. The urban

transportation system is too complicated for one measure to evaluate its success or

failure (El-Geneidy & Levinson, 2007).

This study utilized limited time observation using data one year before and

after the implementation of ETC. The result might reflect the immediate effects of

policy intervention and could achieve different results if it were elaborated using a

longer time frame and with different variables. As to the experimental result of the

study, policy intervention bears significant impact on decreasing transaction time

in the toll plaza. Interesting result is found when interact the basic regression model

in this study with dummy variable of open and closed gate system, in which the

transaction time could decrease in quite high number of seconds. This finding could

be used to develop a simulation model to further utilize the innovation in transport

policy regarding traffic congestion in the toll road, for example conducting ETC

and toll road integration which end up in MLFF deployment.

Decreasing transaction time could mean the increasing number of traffic that

enters the toll gate because the gate could serve more vehicles. In a way, it could

provide better service to toll road user because of cutting transaction time means

reduce the travelling time. However, it could cause bottlenecking that generates

another traffic congestion. A comprehensive approach to eliminate road congestion

is essential, because adding capacity and built more roads may not the answer since

33
they would generate vehicle demand increase. Additional infrastructure policy to

deliver more reliable public transport might provide more considerable effects.

Further studies to analyse external cost caused by the stop and go could be

conducted using available data from this research. This study uses the average daily

traffic and cannot provide enough information about peak hours and off-peak hours

of traffic condition.

34
 Chapter 5: Conclusion and Recommendation

The researcher has observed how the implementation of ETC has been

adopted in reducing transaction time in toll gates. However, the study of how the

implementation of ETC affects transport efficiency in Indonesia is still limited. This

study utilizes a methodology of panel data regression analysis to examine the

mentioned effect.

5.1. Conclusion

According to the findings from the previous chapter, to conclude this study,

there are three main points to be disclosed. First, the results of this study are per the

references from previous research, that the intervention and application of

technology can decrease the transaction time in the toll gates. The variable of policy

intervention, the number of GTO, and the availability of top-up gates contribute to

the decrease transaction time. On the other hand, the log average traffic contributes

to increasing transaction time. ETC deployment can reduce the transaction time at

toll gates by 93.5 percent (p<.000, cateris paribus), thus yield efficiency in

transaction time in toll plazas. Therefore, the intervention eases accessibility and

can improve service efficiency.

Secondly, using the interaction variable of open and closed gate system, this

study captures the effects of ETC deployment. An open toll gate system was a

significant predictor for transaction time. Based on the estimation, the open toll gate

contributed to reducing transaction time with 27 percent, in comparison to a closed

gate system (p<.0000, holds another variable constant). The result shows the

35
sensitivity of how the ETC deployment can affect the efficiency that is proxied by

accessibility in different criteria of toll gates.

Third, the study concerning how ETC deployment affects transport system

efficiency which uses accessibility as measurement and the transaction time as a

proxy has statistically significant results and provides an excellent scrutinize for

assessing the effectiveness of the implemented strategy. Thus, the endeavour could

be utilized to provide better service delivery further to toll road users and indicates

the possibility of performance improvement of toll road operators.

The study will be beneficial for the government for the further development

of more user-friendly highway systems to achieve better toll road service delivery,

through the implementation of ETC, since studies on the evaluation of ETC

implementation policies in Indonesia are not available yet. The comprehensive road

mapping holds the high possibility to relate the information technology with

transport policy development.

There is a need to provide a practice of good governance that is adequately

resilient in supporting the investment and the maintenance of ETC that may diverse

in dimensions and configurations to ensure its success, and sure to move to further

strategy in free flow achievement. In addition, a consistent move to build better

ETC in conjunction with other comprehensive policies could contribute to easing

the traffic flow and for the same time generating revenues further infrastructure

investment and development.

36
5.2. Recommendations

Given the significant effect of the policy implementation, policymakers may

reconsider a more comprehensive implementation of ETC deployment, as policy

alone is not enough to control the congestion. Furthermore, complementary policy

options should be sought to expect higher congestion reduction.

This study further suggests possible future research. The effect of ETC

deployment policy, or any other similar transport policies, may also affect the public

transport sector or other transport alternatives. Curbing transaction time in toll gates

could cause the bottleneck after passing the toll plaza. This phenomenon should be

anticipated with further implementation of transport policies. As the transaction

time become more concise and efficient, there is a possibility of the increasing

traffic volume after entering the toll gate. Congestion levels after pass through the

gates might worsen since adding capacity for existing toll roads seems to be

impossible. The number of vehicles using the road is a crucial determinant of

susceptibility to traffic jams (Sugiyamal et al., 2008). Therefore, providing

integrated and reliable public mass transportation is urgently required, considering

the inelasticity of toll road users in Indonesia. Transport alternatives are limited,

and public transport systems are underdeveloped, especially in Jakarta, where only

around one-fifth of the trips in Greater Jakarta is by train or bus as of 2010 (JICA,

2012).

Furthermore, future work on toll road user’s behavior towards the ETC

implementation could be conducted to investigate the elasticity of user preference

regarding future MLFF policy. Therefore, it is also interesting to perceive how

37
MLFF and other transport demand policy such as “odd and even” policy affect

public transport as transport sector alternatives. It is also interesting to see whether

the availability of MRT and LRT that will be operated, especially in Jabodetabek

area, has a spillover effect on toll road traffic volume.

38
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