Transjakarta has finally changed its institutional status from the government agency to City-Owned Enterprise, or BUMD in Indonesian term. This movement is following ITDP’s recommendation to the Jakarta city government back from 2011, in an attempt to increase the performance of Transjakarta BRT service, the only full-scale BRT in Indonesia. The transformation to BUMD is believed to improve Transjakarta’s management, allowing the organization to be more flexible in managing its funding, recruiting its staffs as well as spending in infrastructure improvement, where previously all of those activities were restricted by government’s regulation.
The move into BUMD will also allow Transjakarta to recruit the best people to become the CEO and board of directors, as well as recruiting experts and professionals to join the team to manage the BRT system with the longest Corridor in the world.
The success of creating BUMD is a result of 3 years consultation process between the City Government and the City Council, and ITDP helped this process from the beginning by drafting the white paper for the regulation, legal review of the draft regulation, creating the business plan and investment plan for Transjakarta and standing in expert panel during the consultation process with the council.
The transition process for the transformation is already started in January 2014, with the selection process of CEO and the Commissioner for the company, and it is expected that all the changes and improvement to be seen during the first half of 2014.