Service Science Master Thesis

Transcription

1 Faculty of Economic Sciences, Communication and IT Submitted by TEGUH HIMAWAN RONGGOSUSANTO STUDY OF INTEGRATED TICKETING SYSTEM OF PUBLIC TRANSPORT IN JAKARTA VS VARMLAND, SWEDEN (A Case Study of TransJakarta Busway and Commuter Train Jabodetabek with Värmlandstrafik AB and Karlstad Buss) Service Science Master Thesis Date/Term: Spring 2012 Supervisor: Patrik Gottfridsson

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3 DECLARATION I hereby declare that the work described in this thesis, except where otherwise stated, is entirely my original work and has not been submitted as an exercise of any degree at this or any other university. Karlstad, 07 June 2012 Name of Candidate Teguh Himawan R. ii

4 ACKNOWLEDGMENTS This thesis is written in order to fulfil the prerequisite of Master Programme in Faculty of Economic Sciences, Communication and IT, Programme of Market and Service Orientation of Public Transportation, Karlstad University and Master Programme in Transportation System and Engineering, Department of Engineering and Environment Department, Faculty of Engineering, Gadjah Mada University. The author would like to express his gratitude to those who have contributed to this thesis. Without their support and encouragement, the completion of this thesis would not have happened. First of all, I would like to give my biggest thank and honour to Allah SWT for the grace, blessing, guidance, gift of love and talent in my life. Many thanks to the coordinator of programme in Karlstad University, Prof. Lars Haglund, programme director in Gadjah Mada University, Prof. Ir. Sigit Priyanto, M.Sc, Ph.D., my supervisor Associate Professor Patrik Gottfridsson, Ph.D, and Prof. Dr. Ir. Siti Malkhamah, M.Sc., also Dr. Eng. Imam Muthohar, ST., MT., and Dr. Ir. Heru Sutomo, M.Sc. (Eng), from Gadjah Mada University for their guidance and invaluable feedback in this research. Thanks to the lecturers and staffs in postgraduate programme in Gadjah Mada University and Karlstad University, Sweden. Not to forget my classmates in batch XXII MSTT UGM and colleagues in Karlstad University, Sweden. I would like to express my sincere thanks to my parents, my beloved wife Dinna Putri Mekarsari, Rafie Putra Himawan and to my family. Thank you for support, prayer, love and encouragement. And thanks to Deny, Febriani, Bagus, and Vika for support in collecting and data process. Researcher consider on this thesis still needs to be improved. Any suggestion and critic from the reader is appreciated as an input to refine for further study. Karlstad, 07 June 2012 TEGUH HIMAWAN R. iii

5 TABLE OF CONTENTS APPROVAL PAGE... i DECLARATION... ii TABLE OF CONTENTS... iv LIST OF FIGURES... vii LIST OF TABLES... ix INTISARI.x ABSTRACT..... xi CHAPTER 1 INTRODUCTION... 1 A. Background... 1 B. Research Problem... 2 C. Research Question... 3 D. Objective of Research... 3 E. Scope of Work... 4 F. Limitation... 4 G. Writing Structure... 4 H. Previous Research about an Integrated Public Transport... 5 CHAPTER 2 LITERATURE REVIEW AND THEORETICAL BACKGROUND... 8 A. Theoretical Background... 8 B. An Integrated Public Transport... 8 C. Integrated Ticketing System... 9 D. Customer s Satisfaction in Public Transport E. New Service Development (NSD) Service Maintenance (Removing Things Gone Wrong ) Improving service performance (adding Things Gone Right ) Service Innovation F. Service Concept in Public Transportation G. An Overview of Public Transport Services in Singapore iv

6 CHAPTER 3 METHODOLOGY A. The Research Approach B. Qualitative Research Approach C. Method of Collecting Data D. Method of Analysis Data E. Thesis Framework CHAPTER 4 EMPIRICAL STUDY AND DATA A. Public Transport Policy in Indonesia B. JABODETABEK Region Area and Population Road and Railway Network in Jabodetabek Area Portraits of Public Transport in Jakarta C. Technical Management Unit (BLU) TransJakarta Busway History and Organizational Structure Bus and Shelter Facility Ticketing System Network of TransJakarta Busway Feeder Bus of TransJakarta Busway D. PT. KAI Commuter JABODETABEK (KCJ) Ticketing System Commuter Train Facility Train Stations Facility Network of Commuter Train E. Public Transport in Värmland, Sweden F. Värmlandstrafik AB Ticketing System Bus and Railway Network G. Karlstad Buss Ticketing System Network of Karlstad Buss v

7 CHAPTER 5. EMPIRICAL DATA CHAPTER 6 RESULTS AND DISCUSSION A. Results Description of Passengers Travel Behaviour Implementation of Ticketing System in Jakarta, Indonesia Comparisons of Public Transports System in Jakarta and Värmland, Sweden B. Discussion Formalizing the Innovation Process Organizational and Network of Relationship Resources and Knowledge Integration Involving Customer and Front-line Employees CHAPTER 7 CONCLUSION AND CONTRIBUTION A. Conclusion B. Contribution C. Future Research REFERENCES INTERVIEWS APPENDIX.90 vi

8 LIST OF FIGURES Figure Process of Public Transport Planning (Institute for Transportation & Development Policy (ITDP), 2005)... 7 Figure Hierarchy of New Service Development (NSD) Figure Process for Removing Things Gone Wrong Figure Process for Improving Service Performance Figure Managing Service Innovation Process (chilling & andreas, 2009) Figure Model of the Service Concept (Edvardsson, 1997) Figure Thesis Framework Figure Number of Population in Jabodetabek Area (Central Bureau of Statistics Indonesia (BPS), 2012) Figure Road and Railway Network in Jabodetabek (Directorate General of Bina Marga, 2009) Figure Concept of the Development of Highway in Jabodetabek Area (Directorate General of Bina Marga, 2009) Figure Portraits of Public Transport in Jakarta Figure The History of TransJakarta Busway Organization (BLU TransJakarta Busway, 2012) Figure The Organizational Structure of Transjakarta Busway (BLU TransJakarta Busway, 2012) Figure The Numbers of Passengers on average per day on (BLU TransJakarta Busway, 2012) Figure TransJakarta Busway Tickets ( & TransJakarta Busway, 2012) Figure Route Map of TransJakarta Busway (BLU TransJakarta Busway, 2012) Figure An Integrated e-ticketing System Plan (PT. Kereta Api Commuter Jabodetabek (KCJ), 2012) Figure The Loop line Route of Commuter Train in JABODETABEK (PT. Kereta Api Commuter Jabodetabek (KCJ), 2012) vii

9 Figure Värmland County and Municipalities ( & Wikipedia, 2011) Figure Organizational Structure (Värmlandstrafik AB, 2012) Figure The type of Värmlandstrafik AB tickets (Varmlandstrafik AB, 2010; 2012) Figure Bus and Railway Network (Varmlandstrafik AB, 2012) Figure Type of Karlstad Buss Tickets (Karlstad Buss, 2012) Figure Passengers of Public Transport by Gender Figure Passengers of Public Transport by Age Figure The Passengers Based on the Occupation Figure The Passengers Based on the Purpose of Travelling Figure The Passengers Based on the Type of Class Services Figure Type of Tickets Used by Passengers Figure Commuter Train Passengers Queuing Time to Buy Tickets Figure TransJakarta Passengers Queuing Time to Buy Tickets Figure The Frequency of Public Transport Users Figure The Passengers Who Use Other Public Transport Modes Figure The Passengers Who Used Private Cars and Public Transport Modes Figure Passengers Who Use Mobile Phone, ATM and Credit Cards Figure Organizations and Network Relationships Figure The Structure Organization of BIMS KB viii

10 LIST OF TABLES Tabel Actual and Perceived Waiting Time of Passenger in Athens, Greece.. 7 Table Number of Population Jabodetabek Area (BPS, ) Table Area of Jabodetabek Region Table The Number of TransJakarta Busway Passengers in Table Route of TransJakarta Busway Table Direct Route of TransJakarta Busway Table The Number of Commuter Train Passengers Table Shareholders of Värmlandstrafik AB Table The Period Card Prices of Värmlandstrafik AB on Table The Prices of One Way Tickets of Värmlandstrafik AB on Table The Prices of Urban Transport of Värmlandstrafik AB Table Currency Ticket (Turkronor) of Karlstad Buss Table Ticket Prices of Karlstad Bus Table Comparison between Public Transport in Jakarta, Indonesia and Värmland, Sweden Table Stage of Implementation Ticketing System of Public Transport in Jakarta, Indonesia and Värmland, Sweden ix

11 INTISARI Besarnya tingkat pergerakan orang di wilayah DKI Jakarta dan sekitarnya memerlukan adanya keseimbangan pembangunan dan peningkatan pelayanan di sektor transportasi publik. Salah satu atribut dari pelayanan jasa transportasi umum adalah ticketing system, dimana saat ini sistem tersebut belum terintegrasi dan masih memerlukan peningkatan layanan. Oleh karena itu, pengembangan ticketing system menjadi integrated ticketing system sangat diperlukan untuk menjadikan transportasi umum yang kompetitif dan memiliki daya tarik bagi pengguna jasa transportasi. Dengan demikian, perusahaan dapat lebih leluasa dalam menetapkan pricing system dan memberikan kemudahan terhadap pengguna jasa dalam menggunakan layanan transportasi umum. Dalam melakukan analisis terkait dengan pengembangan sistem tiket baru yang terintegrasi, penyusunan tesis ini menggunakan pendekatan penelitian kualitatif dan data yang bersumber dari dokumentasi, archival records, interview, direct, dan participant observations. Selain itu, penyusunan tesis ini juga menggunakan kasus dari Värmlandstrafik AB sebagai comparative study dan teori New Services Development sebagai pendekatan untuk memberikan penilaian tentang kemungkinan dalam menerapkan integrated ticketing system. Dengan menganalisa data hasil survey pengguna jasa transportasi, tesis ini memberikan description dan explanation tentang karakteristik dan travel behaviour pengguna jasa transportasi, serta penilaian terhadap layanan ticketing system yang mendasari perlunya pengembangan layanan menjadi integrated ticketing system. Kemudian, dengan menggunakan comparative study akan memberikan hasil analisis terkait dengan hal-hal yang diperlukan dalam mengembangkan integrated ticketing system berdasarkan pada organizational process. Key word: An integrated ticketing system, TransJakarta Busway, Commuter Train Jabodetabek, New Service Development (NSD) x

12 ABSTRACT The heightened mobility of people in the DKI Jakarta province and surrounding area requires balance of the development public transport services. One of service attributes in public transportation is ticketing system. Currently, the ticketing system in Jakarta needs to be improved and still not integrated. Therefore, the importance to develop and implement a new integrated ticketing system to increase the competitiveness and attractiveness of public transports. It also gives an opportunity to the operators in order to implement several of ticket prices. There are some of barriers that faced by operators in development a new integrated ticketing system such as; institutional issue, resources integration, and financial problems. In order to describe and analyse the development of a new integrated ticketing system, this thesis uses a qualitative research approach and five sources of evidence i.e. documentation, archival records, an interview, direct and participant observations through a survey using the form of questionnaires that distributed to the public transport users. Further, this study also uses the case of Värmlandstrafik AB as the comparative study and the theoretical basis of the new services development as an approach to assess the possibility of implement a new integrated ticketing system. It aims to investigate the ticketing system phenomenon using information and data observations as materials to analyse, explore, and provide depth explanation. By analysing data from a survey of passengers, this study gave a description and explanation related the characteristic and the travel behaviour of passenger, also an assessment of ticketing system that underlies the development a new integrated ticketing system. Then, using the comparative case study of Värmlandstrafik AB that already implement an integrated ticketing system and the self-services in provision of public transport services gave an analysis what needs to prepare for implement a new integrated ticketing system consider to the organizational process. Key word: An integrated ticketing system, TransJakarta Busway, Commuter Train Jabodetabek, New Service Development (NSD) xi

13 CHAPTER 1 INTRODUCTION A. Background The capital of the Republic of Indonesia, Jakarta is a metropolis city. In the year of 2010 the number of populations approaches 9 million at night and 12 million people in the evening (BPS, 2012). This occurs with increasing of 3 million people as commuters during the day. People make their way working in the city, especially for people who living in cities around Jakarta such as; Bogor, Depok, Tangerang, and Bekasi. These areas are called Jabodetabek. There are two kinds of mass public transport in Jakarta, commuter train and TransJakarta busway (BRT). The system of BRT has the flexibility being high performance, operations and attributes of system into an integrated system (Levinson et al., 2003). Further, functional integration is a policy that allows the different travel modes to complement each other, so that multi-modal journey easier (Potter & Skinner, 2000). Nowadays, public transportation is not just moving people or goods from one place to another, but a service business. Vargo & Lusch ( 2008) argue that transport solutions need is Service Dominant Logic (SDL) to describe the customer value created and a services business, which are customer-oriented and relational. One strategy to increase the attractiveness of people to use public transport is developing an integrated ticketing system of commuter trains Jabodetabek and TransJakarta busway (Institute for Transportation & Development Policy (ITDP), 2005). Based on Mezghani ( 2008), defines that ticket system is a translation of the tariff for the concrete means of payment for passengers and the collection of fees to operator. Further, the ticket prices are depending on the type of tickets and media used in public transport networks. These encourage companies to increase the value of the service, because when people using public transport, they are paying for service, and the value in the 1

14 2 destination, on time, convenience, and security. The companies have to develop a service that create value for existing customers, attract new customers and the company's value or benefit (e.g. Edvardsson et al., 2000; Gustafsson & Johnson, 2003). There are three main elements in the transportation sector such as; passengers or goods, transportation modes and infrastructure. Transportation sector is derive demand and influence by other factors like; political issue, activities of the tourism, economics, and industry. In Jakarta as a city with a high population requires a public transportation system, it causes the area has a high mobilization or transport of activity for studying, working, and shopping as part of their daily activities. Public transport is one of major issues in Jakarta and makes the government give notice to solve transportation problems. The number both cars and motorcycles increasing every year and raise some issues such as; air pollution, congestion, and high-cost economy. Based on (Dirgahayani et al., 2007), the TransJakarta s system operating insufficiently, due to lack of intermodality measures implementation in improving the accessibility of the system and the risk of uncertainty of travel time caused by the transfer length and waiting time. This becomes a consideration in development of services both commuter train Jabodetabek and Transjakarta busway and provide better public transport services. An integrated ticketing system lead to an easier accessibility, flexibility, and reliability in public transport will increase the attractiveness of people to use public transport and reduce some of the problems caused by transportation. B. Research Problem Commuter train Jabodetabek and TransJakarta busway as mass public transportation giving benefits such as; the technology are environmental friendly, high safety standards, high speed and decreases the traffic jam with attract the user s private car or motorcycle using the public transport mode. These public transport modes offer the solution for current issue in mobility people and environmental problem in Jakarta and surrounding area. The number of

15 3 passengers are increasing every year that shown heightened using public transport mode, but the systems still need to improve. The ticketing system of Transjakarta busway make passengers have to come first to the counter ticket either for Jak- Card holder or passengers, which means twice time for queuing at the counter ticket and waiting the bus. Further, PT. Kereta Api Commuter Jabodetabek (KCJ) launched Comet Card on February 1, 2012, but most of passengers not interested to use e-ticket and still using the paper tickets. The condition make people prefer to use private cars than travelling by public transport will take more time for queuing buy the ticket, degree of flexibility and accessibility. This case need to develop the public transport services in Jakarta by improving the ticketing system into an integrated ticketing system to attract people using public transport in Jakarta. C. Research Question In accordance with the research purpose, this study will focus on three fundamental questions as follows: 1. How can an integrated ticketing systems increase the attractiveness of public transport users? 2. How the process of developing a new integrated ticketing system looking at the organizational process? 3. What kind of services should be developed in Jakarta, Indonesia? D. Objective of Research The overall aims of this research are: 1. To undertake an assessment on the public transport system, especially about an integrated ticketing system. 2. To describe and analyse of how an implementation new integrated ticketing system can improve the experience of travelling public. 3. To analysis what needs to prepare for implement an integrated ticketing system.

16 4 E. Scope of Work The research focuses on public transportation in Jakarta and describes the possibility of developing a new integrated ticketing system between TransJakarta busway and commuter train Jabodetabek refers to the experience of public transport system in Värmland, Sweden. F. Limitation An integrated ticketing system to reach the implementation phase requires a sequence of processes such as technology or technical aspects, operational aspects, and aspects of management, due to time and distance limitation, there are some inputs from the actors of public transport in Jakarta that could not be reached. The researcher in this study will concern in the management aspects and the process of how to develop a new integrated ticketing system between the public transport operators in Jakarta, Indonesia. G. Writing Structure Chapter 1: Introduction This chapter describes background of research, research problem, purpose of research, research questions, Scope of work, and writing structure. Chapter 2: Methodological This chapter describes the research approach, qualitative research approach, method of collecting and analysing data, limitations, and thesis outline. Chapter 3: Theoretical and Empirical Framework This chapter present a theoretical framework consists of theory and literature review that will use to analyze the development a new integrated ticketing system in Jakarta.

17 5 Chapter 4: Empirical Study This chapter describes the condition of public transport ticketing system both in Jakarta, Indonesia and Värmland, Sweden. Chapter 5: Empirical Data This chapter present a result of survey as the material to give a description related to the characteristic of users, travel behaviour, and the implementation of ticketing system based on the users experience. Chapter 6: Analysis and Discussion This chapter will analyse and discuss ticketing system using a theoretical framework of new service development, observations, customer s survey, and literature review. Chapter 7: Conclusion and Contribution This chapter presents the conclusions and contributions. Further, describes and generate an interesting question for future research. H. Previous Research about an Integrated Public Transport There are several studies related to integrated transport system in Jabodetabek, Indonesia. The first study, the 'Study an Integrated Transportation Master Plan for Jabodetabek Phase 1 and 2' (SITRAMP). The study is cooperation between the Government of the Republic of Indonesia and the Government of Japan that conducted by the Japan International Cooperation Agencies (JICA) in 2002 and 2004 (BAPPENAS-JICA, 2002 and 2004). The result of this study recommends the development of integrated public transport in Jabodetabek, master plan of public transport in Jabodetabek, and a hierarchical road system. Second study is the Study an Integrated Transportation Master Plan for Jabodetabek that conducted by JICA and PUSWIKA-UI in The results of this study suggest creating a comprehensive planning and detailed design of the operation, traffic management in favour of public transport, improving maintenance to reduce costs, effective control and collection of data, income

18 6 protection for the crew bus as motivation, and competitive pricing system (JICA- PUSWIKA UI, 2000). Other research is about 'Macro Transportation Pattern' which contains about strategic issues and transport planning in the province of Jakarta (Public Transport Authority of DKI Jakarta Province, 2007). And reports grant from the U.S. Agency for International Development conducted by the Institute for Transportation and Development Policy (ITDP) entitled "Making TransJakarta a World Class BRT System" in This report shows performance improvement TransJakarta busway to develop as an integrated public transport, reliable, and competitive price with better service (Institute for Transportation & Development Policy (ITDP), 2005). One of the points assessment that the current ticketing system on TransJakarta Busway still need to be developed as a multi-journey tickets and an integrated with other public transport modes. Today most of the passengers still use coupons / paper ticket and the customer paying with cash, which means revenue collected from ticket sales at the bus stop and then deposited into the bank, and it is difficult to collect data on services. ITDP in this report also suggests how to provide better ticketing system, which is the TransJakarta Busway could make clearing centre operator to control and manage the transaction all of the ticketing system implemented. In order to develop the ticketing system the company should have; the money manager usually a bank, the equipment provider, the ticket provider, the ticketing system operator, and the transit authority. According to (Dirgahayani et al., 2007), conclude that TransJakarta s system is operating insufficiently, due to lack of intermodality measures implementation in improving the accessibility of the system and the risk of uncertainty of travel time caused by the transfer length and waiting time. To overcome some of the problems faced by TransJakarta Busway, they suggest that reducing the physical effort to develop parks and ride facilities, minimizing the transfer and waiting time. Other obstacles are the availability of land and institutional issues. For more detail the process of planning public transport in Jakarta can be described in the Figure 1.1.

19 7 Figure Process of Public Transport Planning (Institute for Transportation & Development Policy (ITDP), 2005) Further, based on (Psarros et al., 2011), waiting time is one of important attributes for planning and development of public transit system. This research result is different characteristics of waiting time perception that shown in the Table 1.1. Tabel Actual and Perceived Waiting Time of Passenger in Athens, Greece Group Average Perceived Waiting Time (minute) Average Actual Waiting Time (minute) Age Group < More Than Gender Men Woman Trip Purpose Going home from work Work Education Personal Entertainment Shopping Other Source: Report Paper on TRB Annual Meeting 2011 (Psarros et al., 2011)

20 CHAPTER 2 LITERATURE REVIEW AND THEORETICAL BACKGROUND A. Theoretical Background In general, this research uses the theoretical basis of new services development to describe and analyse the implementation of a new integrated ticketing system. Ticketing system is one of the services attributes that have an importance degree to increase the competitiveness and attractiveness of public transports compare to private cars. By developing an integrated ticketing system, the companies try to enhance the flexibility, accessibility, and reliability of public transport. Operators of public transport in Jakarta, Indonesia have already implemented the e-ticketing system, but this system still need to improve. Process development of new integrated ticketing system faced by the complexity of actors involved in public transportation sector that have the different role and resources. In practical and implementation phase development an integrated ticketing system need sequences process and cooperation among actors such as the integration of bus stops and trains station, and information systems (Ibrahim, 2003). Therefore, need to learn organizational process and services concept of public transports to develop and implement a new integrated ticketing system. B. An Integrated Public Transport Functional or modal integration is a combination of using two or more modes of public transport to create a better transport services easier to travel from origin to destination (Potter & Skinner, 2000). It can combine different modes of public transport such as bus, commuter train, boat, private cars and public transport modes. They also argue that the functional integration is a ticketing system that 8

21 9 was supposed to integrated public transport system as a smart card ticketing system that allows for multiple trips. The modal integration intended to transfer passengers from one to another mode of public transportation such as bus rail interchange points and rail-link bus services. This policy must be supported by a travel demand management systems such as park and ride, bike and ride, and electronic road pricing (ERP). In situations they give more directed sense of integration of public transport modes in sequence process that need to be supported with the transport policy. From the definitions to create an integrated public transport are needed; location integration between shelter bus and train stations, the integration of scheduling, ticketing and information, integration of design services, namely; the legal and administration, as well as trip generation integration by integrating transport and land use planning (Potter & Skinner, 2000). C. Integrated Ticketing System Ticket is a tool for the implementation of pricing policy with consideration of operational, commercial and social objectives. Ticketing system is a translation of the tariff to a concrete means of payment for passengers and the collection of fees to operator (Mezghani, 2008). The ticket prices depending on the type of tickets used in public transport network as a single ticket from origin to destination or a single ticket with limited time for multiple trips, such as; 1 hour, single-mode tickets, integrated tickets, multi-trip tickets, season tickets (day, week, month, and year), off-peak tickets, and the combined ticket with park & ride. There are differences of ticket media in several countries, but has the same function as the ticket, namely: cash, tokens, paper tickets, magnetic strip tickets, contact based smartcard, contactless cards, and mobile ticketing (Mezghani, 2008).

22 10 D. Customer s Satisfaction in Public Transport The companies have to consider the customer perceived attracting customers using public transport services. However, there are differences between the customer perceived and objective quality of public transport services (Friman & Fellesson, 2009). Frequency, reliability, travel time, and ticket prices (Hensher et al., 2003), cleanliness and comfort (Swanson et al., 1997), as well as security (Smith & Clarke, 2000) are the main attributes to evaluate the quality of public transport services (Friman & Garling, 2001), which emphasizes the importance of clear and simple information. Based on the (Association of Regional Transport Authority (SLTF), 1996) determine some attributes in public transport services to build customer perspective and quality of public transport are corporate image, company responding to customer complaints, ticket prices, train stations or bus stops facility, convenience, the staff, and traffic such as time tables, schedules, and routes. E. New Service Development (NSD) Since its founding, the company continues to improve their services steps by steps to make the better services in railway transportation and bus rapid transit for the customers. By providing an easy way and the opportunity for customers to extend their desire, the company found customer response to increased customer satisfaction. Based on (Edvardsson et al., 2005, p.118) suggest that service was indeed more generally considered to be a perspective than merely an activity; Service is a perspective on value creation rather than a category of market offerings. (Gustafsson & Johnson, 2003) argue that NSD consist of three process service development activities; (1) service maintenance, (2) improving service performance, and (3) service innovations. Hierarchy of service development can be illustrated in the figure below:

23 11 Figure Hierarchy of New Service Development (NSD) 1. Service Maintenance (Removing Things Gone Wrong ) Service defines as a perspective with involves customer in the service and the common quick fix involved more people at the trouble. The problem relying on quick fixes is comparable to stomp weeds in your garden or removing only the visible part of the plant. The problem is that the weed continues to keep growing (Gustafsson & Johnson, 2003). Service maintenance process can be illustrated in the Figure 2.2. Figure Process for Removing Things Gone Wrong Based on (Gustafsson & Johnson, 2003), the process started with deliberate decision to challenge the status quo and fix the underlying service system. The first step decides to remove Things Gone Wrong. Companies use data from customer complaints make a decision and the list to determine the types of services should be improved and removed in order to achieve the certain goals. This list consist of attributes of service such as; ticketing systems, information and

24 12 customer services, and staff, which aims to classify data into several groups on the list to determine a priority of services could be improved. Example: ticketing system, the defect: not flexible, long time for queuing, and waiting room is uncomfortable, the solution is developing the ticketing system. After find the solution tried to implemented, if the result is positive means that decisions taken appropriate, otherwise that the response is negative re-examined the selection process and make a new defect priority list for find a new solution. 2. Improving service performance (adding Things Gone Right ) Based on (Gustafsson & Johnson, 2003), service maintenance is an on-going process to eliminate things that are wrong and thus does not give customers a reason to go. Improve service performance is all about adding things go right and thus giving customers more reasons to stay. This step is trying to maintain customer loyalty. The process of improving the performance of services can be illustrated in the Figure 2.3. Figure Process for Improving Service Performance Based on (Gustafsson & Johnson, 2003), the process started by building the lens of customer. Conduct requires that viewed from the perspective of the customer. The second step is using the lens to determine the service attributes and benefits that drive customer s satisfaction, build a strong image, and close customer relationships. After that, the third step is to set priorities for improvement and innovation. The most important is to get ideas directly from the

25 13 customer. As co-producer in the service process, they will come up with ideas that competitors don t have (Gustafsson & Johnson, 2003). KCJ provides a wagon for women in each commuter train, increase travel time by applying the loop line route and develop e-ticketing system. This also followed by TransJakarta busway with increasing the number of bus and provides an articulated bus. The companies also need to set the travel time by increasing the frequency of trains and buses so that the departure and arrival time can be tailored to the needs of passengers. For supporting this program need to provide commuter rail and bus schedules as far as possible to the customer. The company can improve the competitiveness and give an easier way to customer buying tickets and efficiency in time by developing an integrated ticketing system. It aims to enhance customer satisfaction and create new markets. 3. Service Innovation Service innovation can be based on new technologies and the integration of multiple services to implement a new way, which aim providing benefits to both customer and company or organization. This advantage could be a profit for the company and increase customer loyalty or create a new business. The companies by developing the service try to create value for existing customers, attracting new customers and the company's value or benefit (Edvardsson et al., 2000; Gustafsson & Johnson, 2003). According to (Lusch, et al., 2008), Service is an interactive process of "doing something for people" and the process being value. Otherwise, value for customers is created in a somewhat different if the focus is on services or products such as transportation solutions than the cars (Lusch, et al., 2008). Service innovation is an important part of the process of service development not only to find out what the customer needs, but a clear process for deciding where to allocate resources, to immerse themselves in the lives of customers, and work with customers to produce, design, and test new ideas (Gustafsson & Johnson, 2003). Based on (Dabholkar, 1990), argues that customer participation is the level of consumer involvement in producing and providing services.

26 14 Based on (Gallouj & Weinstein, 1997), introduces six different models of innovation such as; radical, improvement, incremental as an innovation by substitution or addition of characteristics, ad hoc, re-combinative, and formalisation innovation. Further, there are ten elements for consideration in managing the innovation process of services such as; knowledge management, managing the network of relationships, formalize the process of innovation, crossfunctional involvement, involves the customer and the front-line employees, create a climate of innovation, communication and framing of innovation, Human Resource Management, and internal politics and inertia (chilling & andreas, 2009). The conceptual framework of managing service innovation process can be illustrated in the Figure 2.4. Figure Managing Service Innovation Process (chilling & andreas, 2009) F. Service Concept in Public Transportation Service concept refers to the design service that consists of variety service themes, and process of how to provide and offers services to passengers (Edvardsson, 1997). It can be seen in figure4. Commuter train stakeholders are the Directorate General of Railways (DGR) as a regulator (PTA), PT. KCJ as an operator, and the customer. PT. KCJ gets a Public Service Obligation (PSO) from the DGR to provide railway services. In this case the PT. KCJ has a contract with the government to provide public transportation for citizens, and the DGR has a

27 15 control function for the systems. While stakeholders in TransJakarta busway are the provincial government of DKI Jakarta, DKI Jakarta provincial transportation agency (PTA), Technical Management Unit (BLU) TransJakarta Busway, company that won the procurement process, and the customer. This means that development of public transport needs support from relevant stakeholders and politicians (Enquist, B. et al., 2005). Furthermore, the term of service system associated with value network and resources integration across the stakeholders will create value creation (Vargo & Lusch, R.F., 2008; Edvardsson, B. et al., 2011). A. Customer needs B. Design of the offer Secondary needs Primary Needs Supporting Services Core Services Figure Model of the Service Concept (Edvardsson, 1997) G. An Overview of Public Transport Services in Singapore Singapore is a country in Southeast Asia that has developed public transport services. Several public transport services in Singapore, i.e. taxis, buses, Mass Rapid Transit (MRT) and Light Rail Transit (LRT). In providing public transport services the Singapore government to implement travel demand management policies related to managing road use, such as; electronic road pricing (ERP), park and ride system that integrated with public transport modes, intelligent transportation systems, and the Vehicle Quota System (VQS) since May These systems regulate the citizens who want to use and have their own vehicle during the ten years requires to be a first bid for Certificate of Entitlement (COE).

28 16 Institutions of VQS will release quotas twice a month and a citizen can follow the bidding process of the COE through an electronic on-line auction system (Singapore Ministry of Transportation (MOT), 2012). The Singapore government recognizes that the population has increased every year which is the cause of the high mobility or transport activity, and in the long term can cause congestion and some transportation problems such as; pollution, traffic jam, and high cost economy, so that the necessary public transport services are integrated, efficient, and affordable (Ibrahim, 2003). According to data from (Singapore Department of Statistics, 2011), the population includes; 4,897,600 people in 2009, 2010 (population Census) as 5,076,700 people, and 5,183,700 people in Since 2002, the public transport in Singapore implementing the technology of smart card called EZ-link card for changing the previous system as Transit Link Fare Card that used on MRT, LRT, and Bus. At the previous system passengers need to insert the card into ticket machine, but currently the process is easier just held the ticket near to the card reader and automatically the machine will deduct the fare. In order to increase the level of service in public transport, the government also enhance the level of taxi service with make some program such as; training courses for taxi drivers, cashless payment, built Taxi terminal, easier taxi booking via SMS and internet. And since 1996, LTA controlled the service with implemented the standard of service performance that consist of 5 indicator: average mileage of taxi per day, average utilization of taxi, degree of radiophone response to the customers, number of accident and complaint (Land Transport Authority (LTA), 2000/2001). The new innovation of the integrated ticketing system is part of the program as an implementation of the integration of public transport fares, which is possible for passengers using different transport modes with a single card e.g. MRT and bus. According to (Ibrahim, 2003), in order to support an integrated public transport program in Singapore, the Land Transport Authority (LTA) is working with bus companies providing real time information of public transport in the MRT station and several bus stops. Then create the physical integration by creating a link or bridge between MRT stations and bus stops, as well as an

29 17 integrated the network due to reduce the double link and optimize the resources of public transport. The government objective toward is providing the land transport services as a World Class Land Transport System (Land Transport Authority (LTA), 2 January 1996). This objective is achieved by building new public transport organization called the Land Transport Authority (LTA) in 1995, with responsibility for land transport issues, which means the LTA is to merge the two function of government organizations, namely the road and public transport system (May, A.D., 2004). There are four main strategies that underlying planning of LTA to develop public transport services such as; integrating land use and planning of public transport, road network development and capacity building, managing road usage, and increased levels of public transport services (Land Transport Authority (LTA), ). Furthermore, in assessing the public transport services and make public transport policy, LTA conducted the Household Interview Travel Survey (HITS) to find out about the travel behaviour of the population every four to five years. This survey showed an increase in the number of passengers of public transport, as well as the number of users of private car is increasing from year to year. The survey will use to determine the destination of passengers travelling and according to (Raymond TOH. & Cheong C.C., 2010), the most purpose of passengers travelling are going to the home, office or work place, business personnel, and schools with total 80 percent of all daily trips.

30 CHAPTER 3 METHODOLOGY A. The Research Approach In general, this study using a qualitative research approach with a quantitative data and based on the previous research, literature review related to the integrated public transport system, observations, customer surveys, and comparative studies about an integrated ticketing system to attract car users and enhance customer satisfaction. One of the research processes is collecting primary data and secondary data. Primary data obtained from observations and surveys of passengers by distributed the form of questionnaires to the passengers consists of 500 respondents from both TransJakarta Busway and the commuter train Jabodetabek within three weeks on 17 th of April until May 5, The results of this survey used to describe and analyse the possibility developing a new integrated ticketing system in Jakarta, which based on the theoretical basis of new service development (NSD). Secondary data obtained from literature studies as the material to make comparisons between public transport system in Värmland, Sweden and Jakarta, Indonesia. Research subject consist of how public transport operators implement an integrated ticketing system, and what can learn from the system. The results of this study analyse and assess the possibility developing a new integrated ticketing system in Jakarta, Indonesia, which intend to description and exploration of the ticket system. Further, this research leads to conclusion, managerial implication, and interesting question for future research. 18

31 19 B. Qualitative Research Approach Qualitative research tends to use words or pictures as materials analysis, derived from observations, previous reports, and literature studies (Denscombe, 2007). This approach allows researchers to explore the phenomenon, identify and describe its components, which can be a practical guide for future research. Qualitative research is also appropriate to answer questions like, what... and how to..., or describe the experience. Differences between qualitative and quantitative research are qualitative research aims to explain the phenomenon, the subjective views of participants, small sample aimed to encourage their experiences, data could be information or documents as the written word, interviews, and pictures to be used for the analyses or interpretation of data. Otherwise, the purpose of quantitative research is to explore the cause or make a prediction with an objective perspective, the number of samples must be valid to ensure that the data came from questionnaires or other objective measurements, and analyzing data using statistical methods (Thompson & Walker, 1998). This research uses a qualitative approach to explore the phenomenon of public transport ticketing system in Jakarta. Then used as an analysis to assess possibility of a new integrated ticketing system in order to increase the attractiveness of public transport, especially for people who use private cars or motorcycles. C. Method of Collecting Data Case study method can use the six sources of evidence as research data such as; documentation, archival records, interviews, direct or field observations, participant observation, and physical artefacts (Yin, 2003). This thesis using five sources of evidence is documentation, archival records, interviews, direct observations, and participant observations. Researcher collected data related documentation from the official website of related organization, literature review from previous research, and news from reliable sources. In the archival record,

32 20 researcher collected data from organization record such as; survey data, maps of route network, and chart. In the interview, researcher interviewed the representative of related organization. In direct observation, researcher collecting data from observation related to the subject in ticketing system. Furthermore, the researcher also collected data related participant observations from the survey of passengers in order to describe into depth the passengers experience regarding the ticketing system of public transport in Jakarta, Indonesia. Survey of passengers using the form of questionnaires that distributed to the public transport user consists of 500 respondents from both TransJakarta Busway and commuter train. This survey conducted by four surveyors and distributed directly to public transports users to fill out the questionnaires. Its purpose to collect valuable information about the current ticketing system services based on the users experience. Base on (Bell & Bryman, 2003), defines that closed-ended questionnaire is a series of written questions with the list of suitable responses provides by the researcher and an open-ended questionnaire allows for respondents to answer in their own words. This study uses a closed-ended questionnaire to give an easier way for customers to fill out questions and time efficiency due to the large number of respondents. D. Method of Analysis Data On analysis part is a case study about public transport systems in Jakarta, Indonesia refer to experiences of Värmland, Sweden. Based on (Yin, 2003), a case study is an empirical inquiry that investigated a contemporary phenomenon in the context of real life, which aims to explore in depth and explanation of the complexity of the situation. A case study of this typology is distinguished from history only by the fact that it focuses on contemporary events, and have access to several additional sources of data (Yin, 2003a: 5). This research investigates the ticketing system phenomenon using information from the literature studies and observations to analyse, explore, and provide depth explanation. According to (Yin, 2003), case studies can use for

33 21 exploratory, descriptive, and explanatory. By analysing data from a survey of passengers, the researcher gave a description and explanation related the phenomenon of public transport ticketing system in Jakarta, Indonesia. In order to make it s easier, and then used the word table which displays the data on the same pattern, and the conclusion can be made (Yin, 2003). Further, the discussion part will use the word table to make a comparison between public transport ticketing system in Jakarta, Indonesia and Värmland, Sweden. E. Thesis Framework Introduction Research Problems Theoretical and Empirical Framework Empirical Study and Data Case Study I : Ticketing System Of Public Transport In Jakarta, Indonesia Case Study II : Ticketing System Of Public Transport In Varmland, Sweden Analyisis and Discussion Conclusions And Further Research Figure Thesis Framework

34 CHAPTER 4 EMPIRICAL STUDY AND DATA In order to give an understanding about the process of development a new integrated ticketing system on this chapter will describe an empirical study related the public transport policy in Indonesia, overview of Jabodetabek area and public transport in Jakarta, Indonesia as well as the figure of transportation in Värmland, Sweden and the empirical data that can be explained as follows: A. Public Transport Policy in Indonesia In land transportation public transport policy is set by the state itself, unlike the case of maritime transport should be based on some rules of international law that governed by the International Maritime Organization (IMO), while the air transportation arranged by the International Civil Aviation Organization (ICAO). Public Transport Authority in Indonesia is the Directorate General of Land Transportation Land for land transportation and the Directorate General of Railways for railways transportation, which is the regulations refer to Act No. 22 of 2009 on Traffic and Transportation, and Law Number 23 Year 2007 on Railways. As a basic guideline for officers in carrying out the task, so the rule is supported by government regulations or ministerial decree governing the details of each chapter in the regulation. Furthermore, the development of public transport infrastructure, namely rail and road network, bus and train stations should refer to other relevant environmental regulations and land use. B. JABODETABEK Region Jabodetabek region is large metropolis area in Indonesia and became a strategic area in the nation consisting of Jakarta, Bogor, Depok, Bekasi, and Tangerang, while some cities in this region consists of three different province such as the Province of DKI Jakarta, West Java, and Banten. This region has a 22

35 23 high socio-economic activity than other regions in Indonesia. Currently, the region connected with commuter rail service provided by PT. KAI Commuter Jabodetabek (KCJ) in The populations in this area increase every year and causes high mobility of people using private cars or motorcycles in daily activities. This condition is a transportation problem to be solved jointly by the Government, public transport operators, and the people themselves in this region. 1. Area and Population Jabodetabek area consists of several municipalities around the DKI Jakarta province. This area has strategic location as the socio-economic activity. The provincial of DKI Jakarta became the central of government and business. Otherwise, the suburban area such as Bogor, Bekasi, Depok, and Tangerang became the area of industry and residence area. The number of population in Jabodetabek area can be shown in the Table 4.1.

36 24 Table Number of Population Jabodetabek Area (BPS, ) Name of the Name of the Regency/ 2010 Regency/ Share Share Share Municipality Municipality Population (%) Population (%) Population (%) Population/Share Depok Municipality - - 1,143, % 1,738, % Depok Municipality 1,738,570 (6.22%) Bekasi Municipality - - 1,663, % 2,334, % Bekasi Municipality 4,965,272 (17.76%) Bekasi Regency 2,104, % 1,668, % 2,630, % Bekasi Regency Bogor Municipality 271, % 750, % 950, % Bogor Municipality 5,722,266 (20.47%) Bogor regency 3,736, % 5,508, % 4,771, % Bogor regency Tangerang Tangerang Municipality 921, % 1,325, % 1,798, % Municipality Tangerang Selatan Tangerang Selatan (Municipality) ,290, % (Mun) Tangerang Regency 1,843, % 2,781, % 2,834, % Tangerang Regency North Jakarta 1,645, % North Jakarta West Jakarta 2,281, % West Jakarta Central Jakarta 899, % Central Jakarta 48.19% 36.11% East Jakarta 8,259,266 8,389,443 2,693, % East Jakarta South Jakarta 2,062, % South Jakarta 5,923,299 (21.19%) 9,604,329 (34.36%) Seribu Island 21, % Seribu Island Total of Bodetabek 8,878, % 14,842, % 18,349, % Total of Bodetabek 18,349,407 Total of Jabodetabek 17,137, % 23,232, % 27,953, % Total of Jabodetabek 27,953,736

37 Number of Population 25 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000, Jakarta 8,259,266 8,389,443 9,604,329 Bodetabek 8,878,670 14,842,626 18,349,407 Jabodetabek area 17,137,936 23,232,069 27,953,736 Figure Number of Population in Jabodetabek Area (Central Bureau of Statistics Indonesia (BPS), 2012) The table above had shown the number of residents in the Jabodetabek area increasing each year with a population of 27,953,736 people in This increases the amount of 4,721,667 people or 20% of the population in Based on data from the Ministry of Home Affairs Indonesia shown that the total area of Jabodetabek region approximately 6, km 2 that can be described in the Table 4.2. Table Area of Jabodetabek Region Name of Municipality Area (m 2 ) DKI Jakarta province Bogor municipality Bogor regency 2, Depok municipality Tangerang municipality Tangerang regency 1, Tangerang Selatan municipality Bekasi municipality Bekasi regency 1, Total of Jabodetabek Area 6, Source: (Ministry of Home Affairs, 2012)

38 26 2. Road and Railway Network in Jabodetabek Area Based on data from the Department of Public Works, DKI Jakarta (2010), the length of roads in Jakarta is 7,208,537 M 2, which consists of national roads, provincial roads, city roads, and highways. Compared with the number of vehicles increasing every year, no significant road capacity can accommodate the traffic of vehicles in DKI Jakarta province. The road maintenance should be done regularly and at great expense is a consideration for the government to increase attention to the development of public transport services. Based on data from the Jakarta Police (Metropolitan Police), Directorate of Traffic (2008), the number of vehicles in Jakarta is 11,362,396 units, consisting of 8,244,346 units of motorcycle and 3,118,050 units of car. Amount of traffic in Jakarta will increase the mobility of people from around the Jakarta area and vice versa. Roads and railways in Jabodetabek area can be described in the Figure 4.2. Figure Road and Railway Network in Jabodetabek (Directorate General of Bina Marga, 2009)

39 27 In order to reduce the congestion in Jakarta, government and state own enterprises or operator of toll road have the general concept for the development of highway in Jabodetabek area as follows: Figure Concept of the Development of Highway in Jabodetabek Area (Directorate General of Bina Marga, 2009) 3. Portraits of Public Transport in Jakarta Mass public transportation in Jakarta and surrounding areas consists of buses, Para transit, taxis and shuttle buses. The size of vehicles for public transport in Jakarta can be classified into three categories; large bus with 50 seats, medium bus is a 25 seat, and small public vehicles called angkutan kota or mikrolet. The operator of public transport in Jakarta consists of both government and private companies. Para transits or small vehicles are owned by individuals who obtain permission from the Provincial Public Transport Authority (PTA). This condition can be described in the Figure 4.4.

40 28 Small vehicles as Para transits Medium buses Taxi Large buses TransJakarta Busway Commuter Train Jabodetabek Figure Portraits of Public Transport in Jakarta One of public transport operator in Jakarta is PT. Damri providing public transport services by bus to the Soekarno-Hatta Airport from Bekasi, Bogor, and some bus stations in Jakarta, and Gambir train station. And several taxi companies that operate not only in Jakarta but also in Bekasi, Tangerang and Depok. C. Technical Management Unit (BLU) TransJakarta Busway 1. History and Organizational Structure On January 2004, the provincial government of DKI Jakarta based on the experience of Bogota TransMilenio BRT system in Colombia formed the Technical Management Unit (BLU) Transjakarta Busway to solve the transportation problems. At first time as a non-structural board of the city administration called Management

41 29 Board (BP) Transjakarta Busway that set in DKI Jakarta Governor Decree No. 110 of BP. Transjakarta Busway became the structural organization of technical management unit (UPT) under Provincial Public Transport Authority (PTA) to accept the authority for financial management based on the Pattern of Financial Management Regional Public Service Agency (PPK-BLUD) in accordance with the Governor of Jakarta Regulation No. 48 of The institute is proposed to manage public transport in Jakarta using the Bus Rapid Transit (BRT), whose main activities are providing services to the community using TransJakarta busway. And as part of the government of DKI Jakarta, BLU TransJakarta work under Provincial Public Transport Authority (PTA) of DKI Jakarta. History of Technical Management Unit (BLU) TransJakarta Busway organization can be described in the figure 4.5. Provincial Government of DKI Jakarta In Years of Provincial Government of DKI Jakarta Present Provincial Government of DKI Jakarta Public Transport Authority (PTA) DKI Jakarta Province Public Transport Authority (PTA) DKI Jakarta Province Public Agency (Badan Pengelola/BP) TransJakarta Busway Based on DKI Jakarta Governor Decree No. 110 of 2003 Public Transport Authority (PTA) DKI Jakarta Province Technical Management Unit (BLU) TransJakarta Busway Based on DKI Jakarta Governor Regulation No. 48 of 2006 Figure The History of TransJakarta Busway Organization (BLU TransJakarta Busway, 2012) Currently, the hierarchical organizational structure of Technical Management Unit (BLU) Transjakarta Busway can be seen in Figure 4.6.

42 30 Figure The Organizational Structure of Transjakarta Busway (BLU TransJakarta Busway, 2012) TransJakarta Busway commenced operations on January 15, 2004, with the opening of a corridor of Blok M - Kota. Based on data from the official site TransJakarta Busway at the first operation in 2004, passenger numbers around 40,000 passengers per day and increased to 60,000 passengers per day on average in On January 15, 2006 the company opened corridor two and three. The number of passengers increased to 70,000 passengers per day on average. On January 27, 2007, the companies provides corridor 4, 5, 6, and 7 which amount of passengers reached to 180,000 passengers on average per day in Governor of Jakarta Province inaugurated a corridor 8 with route Lebak Bulus - Harmony on February 21, 2009, and the number of passenger increased to 250,000 passengers per day on average. Then the Governor inaugurated of corridor 9 and 10 on December 31, Amount of passengers increased to 360,000 on average per day in The provincial government of DKI Jakarta launched corridor 11 with route Pulogebang Kp. Melayu on February 28, 2012 which means TransJakarta busway has operated 11 corridors. It can be seen in the Table 4.3.

43 31 Table The Number of TransJakarta Busway Passengers in 2011 TransJakarta Busway Passengers in 2011 Corridor Corridor 1 Corridor 2 Corridor 3 Corridor 4 Corridor 5 Total of Passengers Passengers 18,934,666 7,505,717 9,310,306 5,992,360 8,886,194 Corridor Corridor 6 Corridor 7 Corridor 8 Corridor 9 Corridor 10 Passengers 7,371,334 7,698,854 6,273,133 9,817,177 2,781,739 Sources: (BLU TransJakarta Busway, 2012) 84,571,480 Further, the number of TransJakarta busway passengers per day on average from 2004 to 2010 can be illustrated in the Figure 4.7. Average Passengers per day & Figure The Numbers of Passengers on average per day on (BLU TransJakarta Busway, 2012) Several attributes of services and facilities the Technical Management Unit (BLU) TransJakarta busway that offers to the customers can be described as follows: 2. Bus and Shelter Facility TransJakarta Busway equipped with several pieces of glass-breaking hammer mounted on a window frame, air conditioner, auto air fresheners, perfume spraying regularly, chairs for the disabled and old people, handrails for standing passengers, electronic information boards and loudspeakers that provide information to the passengers about the bus stop or shelter will soon pass. This information provided in two languages, namely; the Indonesian language (Bahasa Indonesia) and English.

44 32 Other equipment in the bus such as; trash, route maps, and communications devices that allow the driver to deliver and get updated information about traffic jams, accidents, etc. Based on the concept of bus rapid transit (BRT), shelter design made different from the regular bus stop located in the middle of the road. In a shelter in front of UN office and Mal Sarinah equipped with elevators. For facilitate the passengers to the shelter built a pedestrian bridge that connects between the sidewalk and shelter. In the Gajah Mada Street, Central Jakarta has built a Harmoni central busway shelter. This shelter can accommodate 500 passengers, connects the corridor 1, 2, 3, and 8, equipped with six automatic doors, and larger than the other shelters. The company provide camera inside of shelters such as; Harmoni Central Busway, Bank Indonesia, Sarinah Mall, Polda Metro Jaya, Tosari, Dukuh Atas 1, Setiabudi, Karet, Bendungan Hilir, and Gelora Bung Karno on May 28, Situations in these shelters can accesses through the official website of TransJakarta busway. In several shelters reserved of free daily bulletin called 'Trans City'. Nowadays, Technical Management Unit (BLU) Transjakarta busway has 192 shelters along the 8 corridor of TransJakarta Busway. 3. Ticketing System TransJakarta Busway has implements the single ticket and price for a single trip, the passengers pay for tickets fare at 3,500 IDR per trip to use the service while not out of the shelter. The ticket price gets subsidy from the provincial government of DKI Jakarta. Passengers buying tickets at the shelter and waiting before enter the TransJakarta Busway. The passengers have to queue twice as long to use the busway TransJakarta, the first time to buy a ticket and a second time before entering the bus, passengers must enter the ticket into the ticket machine called a barrier, which automatically three bar doors can be spun and passed by the passenger. The company provides special fares for passengers who buy tickets at 5-7 o'clock in the morning with a ticket price of 2,000 IDR to attract passengers using TransJakarta Busway.

45 33 PT. Bank DKI launched JakCard as a prepaid card on JakCard utilized the chip technology or smartcard used as a means of payment. At the first time only operated in corridor 1, 2 and 3. Currently, the card operated in the 8 corridors and will expand to 11 corridors. These card provided in some merchants Indomaret have logo JakCard Sale & Top Up, shelters along the 8 corridors, and 18 branches of Bank DKI throughout DKI Jakarta province. Tickets of TransJakarta busway can be described in figure below: Figure TransJakarta Busway Tickets ( & TransJakarta Busway, 2012) Based on information from Bank DKI (2012), customers can top up the card to a maximum of one million IDR in Bank DKI in accordance with the regulations of Bank Indonesia. At the shelter with a denomination of subscribers can charge in IDR 20,000; 50,000; 100,000; 200,000, and 500,000; while in the merchant Indomaret 'Top up 50,000 IDR denominations and multiplication. Customers can check the card balance in the Bank DKI and merchant Indomaret. Passengers can extend the suggestions and complaints using the text message to number 9250, the official website of TransJakarta busway, the passenger s forum, and come to the office. The JakCard holders ask information through contact to the Bank DKI in number (021) , send a fax at number (021) , and the official website of Bank DKI.

46 34 4. Network of TransJakarta Busway Transjakarta Busway has served 10 corridors with a total length of km and the world's longest BRT system. The Governor of DKI Jakarta inaugurated corridor 11 with route Pulogebang Kp. Melayu on February 28, It can be described in the Table 4.4. Table Route of TransJakarta Busway Corridor Origin - Destination Started Operation Corridor 1 Blok M - Station Kota January 15, 2004 Corridor 2 Pulogadung - Harmoni January 15, 2006 Corridor 3 Kalideres - Harmoni January 15, 2006 Corridor 4 Pulogadung - Dukuh Atas January 27, 2007 Corridor 5 Kampung Melayu - Ancol January 27, 2007 Corridor 6 Ragunan - Latuharhary - Dukuh Atas January 27, 2007 Corridor 7 Kampung Rambutan - Kampung Melayu January 27, 2007 Corridor 8 Lebak Bulus - Harmoni February 21, 2009 Corridor 9 Pinang Ranti - Pluit December 31, 2010 Corridor 10 Cililitan - Tanjung Priok December 31, 2010 Corridor 11 Kampung Melayu - Pulo Gebang February 28, 2012 Source: (BLU TransJakarta Busway, 2012) Some of direct route from origin to destination that operated by TransJakarta Busway can be described in the Table 4.5. Table Direct Route of TransJakarta Busway Route Number of Buses that operate Operating Time Origin Destination Working Holiday Valid for Day Pulogadung Kalideres Working day and Holiday TU Gas Dukuh Atas Working day and Holiday PGC Ancol Working day and Holiday PGC Senen Working day and Holiday PGC Harmoni Working day and Holiday Grogol Harmoni Working day and Holiday Ragunan Harmoni Working day and Holiday Kota Ragunan Working day Pulogadung Ragunan Working day Working day Holiday Holiday Source: (BLU TransJakarta Busway, 2012)

47 35 Corridor 9 Corridor 5 Corridor 10 Corridor 3 Corridor 2 (Green Line) Route of Feeder Busway Corridor 4 Corridor 11 Corridor 1 Corridor 8 Corridor 6 Corridor 7 Figure Route Map of TransJakarta Busway (BLU TransJakarta Busway, 2012) 5. Feeder Bus of TransJakarta Busway Based on information from (KOMPAS, 2011), the company provide the feeder bus to improve the services in 3 routes line as follows: a. Sentra Primer Barat (West Primary Centre) Daan Mogot: Puri Indah Hospital West Jakarta Mayoralty office northern side of Puri Market southern side of Puri Market eastern side of Mutiara Kedoya western side of Kedoya Raya southern side of Kembangan eastern side of Pesangrahan Corridor 8 Corridor 3 transfer point. b. Tanah Abang City Hall: Jatibaru western side of Abdul Muis southern side of IRTI Jl Fahrudin Corridor 2 transfer point Corridor 1 transfer point.

48 36 c. SCBD Senayan: Jakarta Stock Exchange Komdak Gelora Bung Karno Plaza Senayan Senayan Trade Centre Busway Corridor 1 transfer point Ratu Plaza Corridor 9 transfer point. The ticket price of feeder bus is 3,000 IDR and customer buying the tickets in ticket counter or an officer wearing special vest at the feeder bus stop, and TransJakarta busway shelter. Passenger can buy a 6,500 IDR ticket to use a TransJakarta and feeder bus. D. PT. KAI Commuter JABODETABEK (KCJ) One of the public transport modes in Jakarta is commuter train. The system started in 2000, when the Indonesian government receives grants 72 units of commuter train, and 50 units can be used directly and operated. Based on data from (PT. Kereta Api Commuter Jabodetabek (KCJ), 2012), the company operated 192 units of commuter train. The company provide two categories of commuter train services as commuter AC and economy non AC. The heightened people to use the services cause the company enhance the number of commuter trains and facility. It can be seen from denseness of passengers at mornings and evenings. Based on data from the Directorate General of Railway the number of commuter train passengers can be shown in the Table 4.6. Table The Number of Commuter Train Passengers Year Number of Passengers ,969, ,425, ,095, ,699, ,632,400 Sources: Directorate General of Railway, Ministry of Transportation

49 37 1. Ticketing System Most of the passenger buy ticket at counter sales in every train stations or buy monthly card. The tickets price is affordable for the community and subsidies by central governments, in this case Directorate General of Railway, Indonesian Ministry of Transportation. Commuter train ticket fares are IDR per trip for commuter non-ac, IDR per trip for AC and economy Commuter, and IDR per trip for express commuter. Nowadays, the ticket prices are almost same for commuter train AC as 6,000 IDR per trip. In 2011, the company has a project developing e-ticketing system that can be illustrated in the Figure Ticket Counter selling paper tickets Figure An Integrated e-ticketing System Plan (PT. Kereta Api Commuter Jabodetabek (KCJ), 2012) This project purposes to provide better ticketing system and increase customers satisfaction. The system enable for customers to buy ticket in some store and commuter train operator easy to control the tickets sales and fast in available data related the services. On February 1, 2012, the company launched Comet card as Commuter Electronic Ticketing with implementation divided into 3 steps, the first step on February 1, to March 31, 2012, started by replace for Monthly Card such as Kartu Trayek Bulanan (KTB) and Kartu Langganan Sekolah (KLS). At the first step e-ticketing system implement in 35 stations.

50 38 The second step on April 1, to June 30, 2012, the system implement in 51 stations in Jabodetabek region and the Comet Card will sale for public or passengers. Further, the third steps on July 2012, by implement the system in whole station at Jabodetabek area as 63 stations. Comet Card price is 50,000 IDR including balance of 30,000 IDR that can be used by card holder. The card validity period is unlimited, but the card can be used by at least balance 13,500 IDR. The users can top up cards with denominations of minimum as 20,000 IDR and maximum as 1,000,000 IDR. 2. Commuter Train Facility In term of increasing security and safety, the company provides two special wagons for woman in every commuter trains, security guards inside the commuter trains and train stations, and some pieces of glass-breaking hammer mounted on a window frame. Company cooperation with Taman Impian Jaya Ancol (Ancol dream land) provides tourist train called Kereta Wisata Ancol on weekends. The commuter train has range speed from 55 to 110km per hour and travelling distance between of km. Some of the commuter trains are equipped with air conditioning and the cabin with a capacity of passengers of each unit. 3. Train Stations Facility Facilities located either in major or small train stations essentially similar. Some of the facilities in train station such as parking area for motorcycle or private cars, the counter of ticket, money changer, taxi and hotel reservation provides in major train station, restroom, waiting room, food court, information centre, porter to help the passengers bring luggage, and security guard. Further, the company provides information service related the services, tourist places and other necessary information through an information centre, send message to 9559, call centre at number (021) , LCD/screen information, and the official website.

51 39 4. Network of Commuter Train Since, December 5, 2011, the company implement the new route line with loop line system. There are several route lines that operate in Jabodetabek area such as Bogor / Depok Manggarai Jakarta Kota; Bogor / Depok Tanah Abang Pasar Senen Jatinegara; Bekasi Jatinegara Manggarai Jakarta Kota; Parung Panjang / Serpong Tanah Abang; Tangerang Duri; and Tanjung Priok Jakarta Kota. The loop route of commuter train can be illustrated in the Figure Figure The Loop line Route of Commuter Train in JABODETABEK (PT. Kereta Api Commuter Jabodetabek (KCJ), 2012) E. Public Transport in Värmland, Sweden Since 1990, public transport operators implement an integrated ticketing system between railway and bus system. It started when the Värmlandstrafik AB deliver the regional railway services that before provided by SJ s trains. The most important to support an integrated ticketing system to connect between train stations and bus stops. The company build a park and ride facilities in the train stations to attract private car user.värmlandstrafik AB is an organizer of public transport companies to

52 40 provide the services in entire of Värmland County, and urban transport in Arvika, Hammarö-Karlstad, Kristinehamn, and Saffle. The company also develops ticketing system and build cooperation with Karlstad Buss to make an integrated ticketing system. Nowadays, Värmlandstrafik AB and Karlstad Buss develop the ticketing system together with the same system as the new smart card system from the Germany companies ATRON and the system will manage by Sweden companies BIMS. Passengers can use public transport modes by a period card that valid for Värmlandstrafik AB and Karlstad Buss. The new system will make an integrated ticketing system between eight public transport companies in the middle of Sweden i.e. Dalatrafik, Karlstadsbuss, Länstrafiken Örebro, Västmanlands länstrafik, Tåg i bergslagen, Upplands Lokaltrafik, Värmlandstrafik, and X-trafik. These public transport companies operate in six regions such as Dalarna County, Värmland County, Örebro County, Västmanland County, Uppland County, and Södermanland County. The Sweden area divided into 21 counties which one of this county is Värmland. This is also influence to the number of Public Transport Authority in Sweden. The Värmland County consist of several municipalities such as Arvika, Eda, Filipstad, Forshaga, Grums, Hagfors, Hammaro, Karlstad, Kil, Kristinehamn, Munkfors, Storfors, Sunne, Säffle, Torsby, and Årjäng. The area of Värmland County described in the Figure19. Train and Bus are public transportation mode connecting the municipalities in Värmland County providing by Värmlandtrafik AB. Otherwise, the urban public transport in the municipality such as Karlstad is provided by Karlstad Buss under the control of Karlstad Kommun. The public transport services in Värmland County are integrated within the network and ticketing system. These systems attract the number resident to use the public transport with the easier accessibility, punctual time, comfort, and competitive price system.

53 41 Figure Värmland County and Municipalities ( & Wikipedia, 2011) F. Värmlandstrafik AB Värmlandstrafik AB is a provider of transportation services that serve the entire area of Värmland County that established in early At the first established the company serving the bus transportation. Since 2004, Värmlandstrafik AB is serving the railway transportation in the county of Värmland which previously performed by the state rail company, SJ. Today the company also provides transport for patients, people with disabilities, and urban transportation in several municipalities such as Arvika, Kristinehamn, and Saffle. Värmlandstrafik AB as an organizer of public transport in the county of Värmland, along with about 40 different partners, the companies organize for passenger trains, buses and special vehicles in regular service, call public transport and special transport. The buses that operate aren t owned by companies, but with services procurement from the contractors. In procurement process, the company requires about comfort and the environment. Värmlandstrafik AB is the first county company in the country that introduced alcohol interlocks in buses, and this system implemented gradually. In order to provide railway transportation the company own or rent the trains.

54 42 The shareholders are the county's 16 municipalities and the county who owns Värmlandstrafik AB. Half of the shares owned by the County Council while the other half is distributed to municipalities by the population which existed on 1 January And since January 1, 2012 transferred all shares to Region Värmland which means the company owned by the Region of Värmland. For more detail the capital of each shareholders of Värmlandstrafik AB can be seen in figure. Under the consortium agreement, paragraph 6, between Värmlandstrafik AB and shareholders, the deficit covered by the county council to 50 percent and the 50% remaining divided between municipalities in proportion to the number of scheduled kilometres (50 percent) scheduled hours (25 percent) and population (25 percent). Table Shareholders of Värmlandstrafik AB No. Kommun Capital (SEK) Percentage (%) 1. Arvika 459, Eda 152, Filipstad 192, Forshaga 202, Grums 164, Hagfors 230, Hammarö 254, Karlstad 1,455, Kil 207, Kristinehamn 418, Munkfors 69, Storfors 79, Sunne 239, Säffle 281, Torsby 226, Årjäng 173, County 4,800, Total 9,600, Source: (Värmlandstrafik AB, 2011)

55 43 The other stakeholders are inhabitant and a customer who has the important role on public transport. All citizens pay approximately 978 SEK/year by tax for the public transport services that provided by Värmlandstrafik AB and approximately 1,260 SEK/year by tax for the public transport services in County of Värmland and Karlstad Municipality. The organizational structure of Värmlandstrafik AB is described in figure below: CEO / Director Economy & Administration Development Marketing & Information Technique Bus Schedules/Traffic Train Traffic Scheduled/Traffi School c Figure Organizational Structure (Värmlandstrafik AB, 2012) Travel Service 1. Ticketing System The current ticketing system that implemented by Värmlandstrafik AB has applied for about 20 years. Värmlandstrafik AB has two types of subscription ticket; a Smart card and the Visa card (with photo and month mark). That's because the different ticket machines on the trains and buses. The ticket machines are on the trains can t read or terrace. The type of Värmlandstrafik AB tickets can be seen in Figure 4.14.

56 44 Smart Card - Karlstad Buss Visa Card Mobile Ticketing Single Ticket Smart Card, has been implemented in Kristinehamn Figure The type of Värmlandstrafik AB tickets (Varmlandstrafik AB, 2010; 2012) The companies also develop and upgraded the service schedule in the mobile (Mobi Time) with new features that make customers can check departures, pay as ticket for travel throughout the county of Värmland, and pay as ticket to travel in urban areas i.e. Arvika, Hammarö-Karlstad, Kristinehamn, and Saffle. The SMS or mobile ticket is also covering all of bus and train links. This system required customers have a cell phone that is connected to the Internet. This works for iphone, Android and phones that can run JAVA. If customer have problems with service can FAQ or contact on The company distinguish about how to buy the single or one way ticket for bus and train. Since January 1, 2010, the passengers can t pay cash on the bus, but with using debit card or SMS ticket. And it will be cheaper to pay the travel using smart card (res pass) with offers 33 percent discount on tickets. Otherwise, on the train passenger can t using the res pass, but passengers can show the card with the receipt

57 45 to get the 33 percent discount from the normal tariff. The smart card (res pass) is not valid on SJ s trains. Customer can pay by cash, debit card, or SMS ticket for travelling with Värmlandstrafik AB trains. The company on January 1, 2011 has raised the ticket prices for period card as 5 percent and single ticket as 3.5 percent, also change the discount card amount 33 percent, if the customers paid one way ticket using smart card (res pass). For more detail the ticket prices of Värmlandstrafik AB can be seen in Table 4.8. Table The Period Card Prices of Värmlandstrafik AB on 2011 Ticket Price on Period card/subscription 2011 (SEK) For the bus services, 14 days, adult 625 For the bus services, 30 days, adult 965 For the bus services, 365 days, adult 9,650 For the bus and train services, adult, monthly 965 For the bus and train services, youth years old, monthly 770 For the bus and train services, school children 7-19 years old, monthly 385 For the bus and train services, adult, annually 9,650 Balance card plus, for bus, train, and taxi services, monthly 1,445 For short distance Karlstad-Hammarö bus, 14 days 480 For short distance Karlstad -Hammarö bus, 30 days 735 For short distance Karlstad- Hammarö bus, 365 days 7,350 For short distance Karlstad- Hammarö bus and train, monthly 735 For Karlstad-Orebro bus, monthly 1,655 Source: (Annual Report of Värmlandstrafik AB, 2011, 2011) Furthermore, the ticket prices seen that the prices are distinguish based on the zone and age of customers, and the prices of one way ticket and urban transport services of Värmlandstrafik AB on 2011 can be seen in Table 4.9.

58 46 Zone Table The Prices of One Way Tickets of Värmlandstrafik AB on 2011 Full Prices (SEK) Adult Youth Years Old School Children 7-19 Years Old Discount Full Prices Discount Full Prices Discount Prices (SEK) Prices (SEK) Prices (33%) (33%) (33%) or more Source: (Annual Report of Värmlandstrafik AB, 2011, 2011) Table The Prices of Urban Transport of Värmlandstrafik AB Urban Transport Adult (SEK) Youth years (SEK) School Children 7-19 years (SEK) Single tickets and valid for travel in two hours Arvika, Kristinehamn, and 16 ( ( (14 SEK*) Säffle SEK*) SEK*) Torsby 16 ( ( (14 SEK*) SEK*) SEK*) Period card, monthly card (30 days) Arvika 530 SEK Kristinehamn for all bus lines, except line SEK Säffle 530 SEK Source: Värmlandstrafik AB ( 2012) 2. Bus and Railway Network The company provides eight regional bus lines such as; Karlstad Kristinehamn Karlskoga; (2) Karlstad Molkom Filipstad; (3) Karlstad Molkom Hagfors; (4) Karlstad Forshaga Deje Munkfors Ekshärad Stöllet/Värnäs; (5) Karlstad Sunne Torsby; (6) Karlstad Arvika (- Charlottenberg); (7) Karlstad Årjäng;

59 47 and (8) Karlstad Säffle Åmål. The company also provides local public transport in Arvika (8 lines), Kristinehamn (10 lines), Säffle (9 lines) and Torsby (6 lines) which changed on June The regional train lines consist of four lines such as; (1) Charlottenberg Arvika Karlstad Kristinehamn Degerfors; (2) Karlstad Säffle Åmål; and (3) Karlstad Sunne Torsby; and (4) Kristinehamn Ludvika. Currently, the regional railway traffic decrease with relieve the line Kristinehamn Hallefors. Figure Bus and Railway Network (Varmlandstrafik AB, 2012) Since June 2011, the company serve the new route from Karlstad Hammarö. Nowadays, the route divides into 5 traffics such as; (1) west traffic serve with bus lines and lines ; (2) east traffic using lines 300, , (343), 460, , and line 560; (3) south traffic serve with bus line 100, , 260, 300, , 460, , 560, , 660, 700, , , and 860; (4) north traffic provide by bus lines 200, 202, , , 310, 600; (5) and Hammarö served by bus lines , and line

60 48 G. Karlstad Buss The company offers special discount for student called Student Discount with rate at least 75% to increase the attractiveness of public transport. The services provide at am to am on Monday to Saturday, and Sunday at am to am. Karlstad buss organizes an urban public transport in Karlstad municipality, with procurement process the organization govern the companies to serve the traffic that determine by Karlstad Buss. This means the buses that operate owned by Nobina and the Karlstad Buss provides an information system, ticketing system, route and the tickets price, and the bus stops. 1. Ticketing System The current ticketing system have implemented for about 20 years which the customer can t paid cash for travel using Karlstad Buss and paid with debit or credit card, currency model that make by Karlstad Buss as ticket called Turkronor, and smart card (res pass). The type of Karlstad Buss tickets is shown in Figure And Mobile ticket or SMS ticket to 72054, with the same price as a regular one-way ticket. Adult and youth costs SEK 22, and schoolchildren ticket costs 13 SEK. Figure Type of Karlstad Buss Tickets (Karlstad Buss, 2012)

61 49 Table Currency Ticket (Turkronor) of Karlstad Buss Price Description Price Description 14 SEK 22 SEK 23 SEK 100 SEK As single tickets for youth (20-25 years) As single tickets for youth (20-25 years) As single tickets for adults Customer can upgrade the value of smart card (res pass) onboard or at retail outlets (Pressbyrån). 209 SEK 279 SEK 369 SEK 489 SEK Customer can purchase a 14 day period for school children (7-19 years), youth (20-25 years), student or senior (65 - years). Customer can purchase a 14 day adult (26 - years). Customer can purchase a 14 day adult Customer can purchase a 30-day adult (26 - years). Source: Karlstad Buss ( 2012) In order to facilitate customers and to reduce cash handling on board conduct by Karlstad with provide five ticket machines. In these machines customer can buy single tickets, and recharge the period card (res pass). The five machines can be found on the main square (two), Queen Street (two) and at the University, then customer paid using debit card (Visa or Mastercard) or coins. Single tickets are valid for 1 hour from when you bought it. The prices in the vending machines are the same as on ticket retail and on board at Karlstad buses. The tickets price is subsidized by the local Kommun from taxation, it pays approx 50% of costs of public transport and this is covered by fare revenues (Revenue = Price * Quantity). Quantity is the means by which the 50% of cost is covered by passenger s fee, for example in Karlstad the local public transport system is provides by Karlstad Buss. The tickets fare has classified in 3 categories such as adult (26years+), youth (20 to 25 years), and school children (7 to 19 years).

62 50 Table Ticket Prices of Karlstad Bus Price of travel passes (include 6% Adult Youth School VAT) ( 26 years) (20-25 years) Children (7-19 years) Value, one-way ticket (27% off) 16 SEK 16 SEK 9.60 SEK Period of the agglomeration, SEK 359 SEK 359 SEK days Period of the agglomeration, SEK 194 SEK 194 SEK days 2-Municipality, 14 days, Karlstad urban transport and Hammarö 480 SEK 480 SEK 480 SEK municipality 2-Municipality, 30 days, Karlstad urban transport and Hammarö 735 SEK 735 SEK 735 SEK municipality School / semester SEK Summer SEK Biannual Youth/school children - 1,760 SEK 1,760 SEK Full-year urban 4,680 SEK 4,680 SEK 4,680 SEK Source: Karlstad Buss ( 2012) To attract the customers, company have special price for old people as Senior Short (from 65 years); the agglomeration period of 14 days: 194 SEK and per the agglomeration period of 30 days: 359 SEK. During the day operation, the peak hour can be define in the morning and evening maybe load factor approximately 70%, but in the night there is only little passengers so its makeup load factor in the night is approximately less than 40%. The price of ticket, monthly card, and year card have covered optimal pricing and social pricing, this enable the company to provides better services in public transport as well and the tickets price are affordable, attract, and give benefits both for passengers and companies with makeup classification in tickets price. In this case willingness to pay (WTP) of customers will influence the demand of passengers to use public transport.

63 51 2. Network of Karlstad Buss Karlstad Buss offers 17 routes of urban transport in Karlstad municipality that described as follows; line 1 (Campus-University-Centrum - Bergvik Shopping Centre IKEA), line 2 (Mjölnartorpet / Välsviken - Kronoparken Centrum Skåre), line 3 (Stockfallet/University - Lorensberg Centrum - Sjukhuset - Sommarro/Jakobsberg), line 4 (Norra Kroppkärr - Centrum- Gruvlyckan - Bergvik Shopping Centre), line 5 (Henstad - Hultsberg - Centrum- Hultsberg Henstad), line 6 (Färjestad - Centrum- Våxnäs Gruvlyckan), line 7 (Orrholmen - Centrum Zakrisdal), line 8 (Grava - Skåre - Centrum - Herrhagen - Sjöstad), line 11 (Herrhagen - Centrum - Herrhagen), line 12(Mariebergsskogen - Centrum - Mariebergsskogen), line 13 (Norrstrand - Centrum - Norrstrand), line 51 (Örsholmen - Lamberget - Kanikenäset - Centrum - Kanikenäset - Lamberget - Örsholmen), line 52 (Sommarro - Norrstrand - University), line 56 (Bomstad - Ikea - Centrum - Ikea - Bomstad), line 57 (Kronoparken - Sundsta - Centrum - Kasernhöjden), line 58 (Nobelgymnasiet - Centrum - Nobelgymnasiet), and line 59 (Gruvlyckan - Centrum - Gruvlyckan).

64 Number of Passengers 52 CHAPTER 5. EMPIRICAL DATA This section consists of the data as a result of passenger surveys that involve of 500 respondents from both TransJakarta busway and commuter train passengers. Survey conducted by using the questionnaire forms consist of 13 questions. Its purpose gives a description of passengers and travel behaviour as the material to describe and analyze implementation of ticketing system in Jakarta, Indonesia. The survey results can be described as follows: 1. Question 1; the number of passengers by Gender Male Female Gender Busway TransJakarta Commuter Train Figure Passengers of Public Transport by Gender

65 Student Civil Servant Private Employees Entrepreneur Other Unemployment Question 2; the number of passengers by Age. TransJakarta Busway 5% 12% 16% Commuter Train Jabodetabek 12% 6% 15% 18% 49% 24% 43% Years Years Years Years More than 50 Years Years Years Years Years More than 50 Years Figure Passengers of Public Transport by Age 3. Question 3; the number of passengers based on the Occupations Occupation Busway TransJakarta Commuter Train Figure The Passengers Based on the Occupation

66 Number of passengers Question 4; the number of passengers based on the purpose of travelling Go to Home Shopping/ Pleasure Offices Study Other Purposed of Travelling Busway TransJakarta Commuter Train Figure The Passengers Based on the Purpose of Travelling 5. Question 5; the number of commuter train passengers based on the type of class services. Survey of Commuter Train Passengers 62% 38% Type of Class Services Commuter Non-AC Type of Class Services Commuter-AC Figure The Passengers Based on the Type of Class Services

67 Number of Passengers Question 6; type of tickets used by passengers JackCard/Commet Card- MonthlyCard Figure Type of Tickets Used by Passengers One Trip Tickets Type of Tickets Used by Passengers TransJakarta Busway Commuter Train Question 7; commuter train passengers queuing time to buy tickets Less than 5 Minute Minute Minute Minute Passengers Queuing Time to Buy Ticket Commuter Train More than 20 Minute Figure Commuter Train Passengers Queuing Time to Buy Tickets

68 56 8. Question 6 and 7; transjakarta busway passengers queuing time to buy tickets. Queuing Time to Buy Tickets Queuing Time to Enter the Bus 9% 6% 26% 15% 44% 23% 18% 2% 22% 35% Less than 5 Minute 5-10 Minute Minute Minute More than 20 Minute Less than 5 Minute 5-10 Minute Minute Minute More than 20 Minute Figure TransJakarta Passengers Queuing Time to Buy Tickets 9. Question 8; frequency of passengers who used public transport modes. TransJakarta Busway Commuter Train 10% 1% 4% 20% 35% 54% 50% 26% >4 times 5-8 times 9-12 times 12 times< >4 times 5-8 times 9-12 times 12 times< Figure The Frequency of Public Transport Users

69 Question 9; the number of passengers who use other public transport modes. TransJakarta Busway Commuter Train 14% 4% 6% 43% 13% 11% 8% 26% 33% 42% Commuter Train (KRL) Para Transits City Bus Kopaja/ Metro Mini Other TransJakarta Busway Para Transits City Bus Kopaja/ Metro Mini Other Figure The Passengers Who Use Other Public Transport Modes 11. Question 10; the number of passengers who used private cars and public transport modes. Busway TransJakarta Commuter Train 35% 13% 29% 21% 52% 50% Private Cars Motorcyles Only TransJakarta Busway Private Cars Motorcyles Only Commuter Train Figure The Passengers Who Used Private Cars and Public Transport Modes

70 Question 11 and 12; the number of passengers who use mobile phone, ATM and credit cards ATM Card Credit Card Type of Cards Other Use Mobile Phone Not Use 19 Busway TransJakarta Commuter Train TransJakarta Busway Commuter Train Figure Passengers Who Use Mobile Phone, ATM and Credit Cards

71 CHAPTER 6 RESULTS AND DISCUSSION A. Results Based on explanation in the previous chapter about public transport ticketing system in Jakarta, Indonesia needs to improve and create into an integrated ticketing system. Services development process of an integrated ticketing system needs sequence of process such as; a ticket provider, the customer perspective, and infrastructure in public transport (Mezghani, 2008). Further, on this research conducted a survey with respondents from the passengers of TransJakarta Busway and commuter train Jabodetabek to determine the customer's perspective about implementation of ticketing system in Jakarta, the characteristics of customer and the travel behaviour. Based on (ALCO, 2012), defines the benefits of an integrated ticketing system for customer such as; create a multimode transportation across the operators, flexibility by reduce the cash payment and single ticketing system, possibility to offers the affordable price as well as discount opportunity, and enhance attractiveness using public transports. Moreover, the benefits for operators are; increasing the number of passenger, reduce operation cost and cash management, flexibility of pricing systems, speed up the dwelling time, and availability of data to analyze the services. 1. Description of Passengers In this section will describe and analyze the characteristic of passengers based on gender, age, and occupation as well as the commuter train passengers based on the class of services. The survey result shown that the number of male passenger higher than the female passenger. However, differences in either male or female passengers 59

72 60 of TransJakarta busway as 15, 2 percent and commuter trains as 12, 8 percent. This means that the numbers of passenger have the same tendency and almost equally between male and female passenger, and the attractiveness users to use public transport is not influenced by gender, but the customer needs. The customer needs in public transport is intent to the Services Dominant Logic, which means customers use a public transport as solution of their need on daily activities and the passengers value will be different depending the purpose of the trips. The result of survey also shown that the most of passengers TransJakarta busway dominated by young people with the age of years as 67 percent, which means most of the passengers were economically active. Based on information from (Central Bureau of Statistics Indonesia (BPS), 2012), labour force is persons with the age of 15 years old and over who worked, temporarily absent from work but have a job, which categorized as employed, and those who are unemployed and looking for work. Moreover, the number of passengers commuter train dominated by young people with the age of years as 67 percent, the passenger with the age of between years old as 43 percent and the age of years as 24 percent. This means that the most of passengers also categorized as economically active or dominated by labour force. Public transport passengers comprised of private sector employees as 35, 96 percent, civil servants as 24, 11 percent, and the student as 20, 75 percent of the total number of 80.8 percent. Differences a passenger occupying lead to various ability for pay the services. Companies have a possibility to implement competitive prices systems and services. Currently, single trip fares of public transport in Jakarta using a flat rate even for students and elderly. This makes customers feel ordinary about the services offered by the company. The differences of passengers occupation will generate options for using the class of service. Based on data survey (2012), commuter train passenger consist of 62 percent of commuters AC and the economy non AC as 38 percent. Company improve services and focus on their customers by changing the concept of service, which previously had three categories such as

73 61 commuter train express, economy AC and non AC became commuter AC and Economy non-ac. 2. Travel Behaviour In this section the researcher will describe and analyze the travel behaviour based on the survey result. The researcher determine some component regarding the travel behaviour such as; the passengers travel purpose, the frequency to use public transports, the type of public transport, and combine both public transport and private cars or motorcycles. Passengers using public transport services as the solution needs in their daily activities and the value of passengers are different depend on their travelling purposed. Based on data survey (2012), the most of passengers travelling to go home and offices with a total of 73, 56 percent of daily trips. This means that some of the passengers are labour force and travelling purpose for working. It illustrates the situation of DKI Jakarta Province as the centre of government and business activities and the heightened mobility of employees who come from cities around Jakarta. Moreover, the frequency of passengers to use public transport comprised of TransJakarta busway users who use the services in a week for 4 times as 54 percent, 5-8 times as 35 percent, 9-12 times as 10 percent, more than 12 times as 1 percent, and the commuter train users dominated by passengers who use the services in a week for 9-12 times as 50 percent, 5-8 times as 26 percent, 4 times as 20 percent, and more than 12 times as 4 percent. This means that the company need to improve the competitiveness and attractiveness of public transport to increase the frequency of passengers using public transports. Based on data survey (2012), there are 51 percent of passengers who use both motorcycles and public transports, and private cars users only 17 percent on average. This means that the public transports services ineffective to attract the private cars users. Therefore, needs to increase the accessibility of public transports, competitive prices, and develop park and ride facilities. The number of TransJakarta passengers

74 62 who use the commuter train and Para transits called Angkot or Mikrolet as 76 percent of the passengers and the commuter train passengers who use Para transits and TransJakarta busway with a total of 68 percent. This means that some of passengers also use other modes of public transport in daily activities to reach their destinations. So it needs to improve both the accessibility and flexibility of public transport system. The process of development an integrated ticketing system should also be supported by the implementation of policies on public transport such as; park and ride facilities and an Electronic Road Pricing (Ibrahim, 2003). 3. Implementation of Ticketing System in Jakarta, Indonesia Commonly the passenger of public transport in Jakarta still using the one way tickets or paper tickets although the companies has develop e-ticketing system. Based on data survey (2012), the number of passengers who use paper tickets as the amount of 77, 2 percent on average that consists of the passengers of TransJakarta busway as 86, 6 percent and commuter train as 67, 6 percent. Otherwise, the passengers who used e-ticketing system as the amount of 22, 8 percent on average both public transports i.e. TransJakarta busway and commuter train. This means that the attractiveness of passengers to use e-ticketing system is lower than paper tickets. The companies could increase the benefits of using e-ticketing system to attract the customers and offers the competitive pricing system as the implementation of ticketing systems. The companies possible to develop a new integrated ticketing system with make cooperation that purposed to increase the competitiveness of public transport services and reduce the private car users. One of the reasons people choices the private cars than public transport, because lack of accessibility and need more time to use public transport mode. Some of the public transport infrastructure in Jakarta still not integrated each other. The companies need to develop together the route network and create an access connecting the shelter bus and train stations, especially at central business activities. Currently, passengers need to walk far to go to the shelter bus and

75 63 train stations, and need time for queuing to buy the tickets. Its causes take more time to use public transport for travelling along the area at city and increase the attractiveness of people to use private cars and motorcycle. Based on data survey (2012), the most of passenger has to queue between 5-10 minutes and minutes for buying the tickets with total of 62, 8 percent passengers on average. The passengers queuing time of commuter train is less than the TransJakarta busway, and according to the data survey (2012), the most of passengers commuter train has queuing time for buying tickets between of 5 to 10 minutes and less than 5 minutes with total of 70, 8 percent. TransJakarta busway passengers has twice for queuing time to use the services, which first to buy the tickets and wait to enter the bus at the shelters and sometimes the bus only carry part of total passengers in the shelter. This make the passengers must be patient to wait the next bus with the same destinations. Based on (Mishalani et al., 2006), there is a linier relationship between the passengers perceives of waiting times and the actual time at the bus stop, whereas the customer perceived was range of 3 to 15 minutes, and 94 percent of respondents waiting time is range between 3 and 9 minutes. And most of them willing to wait at the bus stop as long as 5 minutes. According to the data survey (2012), the most of passengers TransJakarta has queuing time for buying tickets between of 5 to 10 minutes and the waiting time to enter the bus as long as 5-10 minutes. These causes take more time to use the public transport and the condition of several shelters that crowded with a lot of passengers queuing became one of the reasons to use private cars and motorcycle. Consider to the area of Jakarta as the centre of government and business activities make people determine the travel choice mode based on the accessibility and travel time. This also influenced the travel behaviour of public transport users as explained in the previous section.

76 64 4. Comparisons of Public Transports System in Jakarta and Värmland, Sweden Based on data and information in the previous chapter can be analyzed and discussed about public transport system with make a comparison between public transport in Jakarta, Indonesia and Värmland, Sweden that described in the Table 6.1. Table Comparison between Public Transport in Jakarta, Indonesia and Värmland, Sweden No. Items 1. Organizations Public Transports Systems Jakarta, Indonesia Värmland, Sweden TransJakarta Busway and Commuter Public transport services both bus and train in the Train are managing by the different of regional area of Värmland county is managing by companies, and the Public Transport Värmlandstrafik AB. The company build Authority (PTA) i.e. PTA of provincial cooperation with Karlstad Buss to provide the urban DKI Jakarta for TransJakarta busway transportation in Karlstad municipality to increase and the Directorate General of Railways the accessibility, flexibility by an integrated for commuter train Jabodetabek. The ticketing system, and competitive pricing system. companies develop the ticketing system The companies make cooperation with Sweden without cooperation both public company BIMS as third party to manage and transport operator, and the pricing provide the ticketing systems. system using flat tariff.

77 65 Table 6.1. Cont d. No. Items Hardware; 2. Interchange Physical Design Software; Logical 3. integration of information system Public Transports Systems Jakarta, Indonesia Värmland, Sweden Public transport operator trying to make a Already connects both bus and train by placing close enough both TransJakarta busway and bus stop near the train stations. It can be seen commuter train systems. The companies from the network of Värmlandstrafik AB. The providing park and ride facilities in Ragunan company also providing park and ride facilities and Kalideres shelter to connect private cars in some of the train station. or motorcycle with TransJakarta busway and parking facilities in train stations. In several locations, the distance between the shelter busway and train stations too far away and unconnected. Signage, maps, and schedules information The companies providing information about are still few and provides in TransJakarta schedules, time table, and route, etc. in several busway, shelters, commuter train and train ways such as; handbooks for customers, station in a traditional way. electronic board and live time in several shelters of Karlstad Buss, mobile phone apps that can be download by passengers, and official website.

78 66 Table 6.1. Cont d. No. Items Finware; Combine ticketing and common fare system that consist of three 4. components such as; fare collection process, payment media as tickets, and fare structure. Public Transports Systems Jakarta, Indonesia Värmland, Sweden Already implement the e-ticketing system Already implement an integrated ticketing that can be used for inter-modality both system both bus and train services in regional of TransJakarta busway and commuter train Värmland, Sweden and urban transportation in Jabodetabek. Most of the passengers using Karlstad municipality cooperation with Karlstad the paper tickets and fare collection in the Buss. The companies will develop an integrated shelter and train station, then deposit to the ticketing system between eight public transport bank by cash. The tariff structure of companies that operate in six counties in the TransJakarta busway using the flat tariff middle of Sweden. Currently, there is no cash system, although the e-ticketing only deduct payment to use public transport in Sweden and the tariff based on the frequency of using the the ticket media using a smart card, mobile or services and the fare same with one trips SMS ticketing, Turkronor and vending machine tickets. For one trip tickets of commuter train of ticket for Karlstad Buss. using the flat tariff and monthly ticket divided into common passengers and student.

79 67 B. Discussion In this part will discuss the process of developing an integrated ticketing system to assess the possibility of implement a new integrated ticketing system as well as an explanation of how to develop a new integrated ticketing system and what kind of services could be implemented in Jakarta. Based on data survey can be described the number of passengers who use mobile phones with a total of 94 percent, ATM cards as 72, 66 percent and credit cards as 16, 66 percent of the average passengers of TransJakarta busway and commuter train. This means that most of the passengers have basic knowledge and familiar with the applications on mobile phone and banking transactions. In fact, the passengers can adapt and learning the technology in banking and telecommunications. Based on the experiences of public transport in Värmland, Sweden that already implement an integrated ticketing system and developing the self-services in provision of public transports can be learned and adapted to improve the public transport services in Jakarta, Indonesia. The operator both TransJakarta busway and commuter train have possibility developing the self-services by provide vending machine of tickets, especially at main shelters of TransJakarta busway and make an integrated ticketing system. The service development process of a new integrated ticketing system can be described as follows: 1. Formalizing the Innovation Process There is a need to formalize the process of innovation to encourage both companies and employees in behave of innovative and keep a services development process continuously. Companies may create a new board of the development department in the organizational structure. This department has a function to determine which services should be developed to improve customer satisfaction, manage relationships and build joint ventures, business opportunity by creating new services and markets, and keep up to date availability of data related the services. In public transport companies the development department

80 68 important to enhance competitiveness and attractiveness of public transport services, and encourage passengers to use the services. 2. Organizational and Network of Relationship There are several actors who involve in the provision of public transport services in Jakarta such as; the Directorate General of Railways and provincial of Transportation Department as Public Transport Authority (PTA), public transport operators, and companies who won the procurement process. In the provision of public transport services in Jakarta, PTA governs the services to the operators through the contract of public transport subsidies. This activity also involves some actors as companies who stand the procurement process and public transport operators. Therefore, needs the role of organization with responsibility to provide and manage the ticketing system. Based on (Håkansson, H. & Snehota, I., 1995), A network is built up by three, to each other, related variables; actors, activities and resources. (Gottfridsson, 2012) defines that actors are those who perform activities and control resources. Further, The service development process in the public sector involving at least five actors are policy makers, driving actors, supporting actors, providers, and users of public transport (Gottfridsson, 2012). According to this point of view, the process development of ticketing system requires a relationship between the actors that lead to the integration of resources, knowledge and experience. Companies can gain access to vital resources and improve the ability by controlling the resources and activities to achieve the goals. One of actors involve in the service development process is the policy makers consisting the element of government i.e. Directorate General of Railways and Provincial Government of DKI Jakarta who make a policy and sets the financial frame by granting fund as the public services obligations (PSO) and the infrastructure facilities of public transportation. Driving actors may be a person who has ideas that generate for the implementation of a new service, for example; the ideas of development BRT system come from Mr. Sutiyoso, the governor of DKI Jakarta province. Then the driving actors require acceptance of the supporting actors as politician or members of House of Representative. The

81 69 followed actors are public transport operators as a service providers, as well as public transport users. The process of development a new integrated ticketing system needs an organization that have functions to provide the ticketing systems, managing the system with integrate the pricing system and media as tickets, and collection of fee and distribution of revenue. This is can be achieved by developing an organization as clearing centre and standardized tickets media, fare collection and system of ticketing to create an integrated ticketing system. This explanation can be illustrated in the Figure 6.2. Värmlandstrafik AB Karlstad Buss and other companies in Six County in the Middle of Sweden Technical Management Unit (BLU) TransJakarta Busway Commuter Train Jabodetabek (KCJ) BIMS KB, Sweden Supplier ATRON, Germany Organization (Ticketing Provider, Managing the System, and Clearing Centre) Ticketing System of Public Transport in Värmland, Sweden Propose for Developing an Integrated Ticketing System in Jakarta Figure Organizations and Network Relationships By creating a single organization with purpose to develop a ticketing system will integrate the ticketing system of different public transport operator. Further, the companies develop an integrated ticketing system together through this organization. But we realize that creating a single organization for ticketing system as implemented in Värmland, Sweden need a sequences process consider to the condition of public transport system in Jakarta, Indonesia that described in the table below:

82 70 Table Stage of Implementation Ticketing System of Public Transport in Jakarta, Indonesia and Värmland, Sweden STAGE OF IMPLEMENTATION TICKETING SYSTEM OF PUBLIC TRANSPORT IN JAKARTA, INDONESIA TICKETING SYSTEM TIME PERIOD DESCRIPTION PROPOSED TransJakarta Busway : Years of Actors of public transport are Provincial Government of DKI - Paper Ticket Jakarta, PTA, and TransJakarta Busway. - Paper ticket and e-ticketing Years of E-ticketing system was launched system called JakCard on 2006 by PT. Bank DKI with first implemented in corridor 1, 2, and 3. Currently, the system operated in corridor 1 8 and will expand to corridor 11. Commuter Train Jabodetabek - Paper ticket and monthly card - Paper ticket and e-ticketing system called Comet Card Years of 2000 January 2012 Since February Actors of public transport are Directorate General of Railway, Ministry of Transportation and Commuter Train Jabodetabek. - Since February 2012, the company launched Comet Card with implementation divided into 3 steps; the first step (February- March 2012) started by replacing monthly card and implemented in 35 train stations, the second step (April-June 2012) implemented in 51 train stations, and the third step started on July 2012 implemented in whole stations at Jabodetabek area. Several stage to implement an integrated ticketing system between TransJakarta Busway and Commuter Train Jabodetabek are: 1) Agreement between two companies that supporting by Directorate General of Railway, Ministry of Transportation, and Public Transport Authority of DKI Jakarta Province. 2) In general agreement to develop an integrated ticketing system consist of; data and information of parties in contract, the obligations and duties, type and specification of services i.e. technology of ticketing system, how to perform and evaluate the services, and time period. 3) Developing e-ticketing system together through a procurement process to determine the company to manage ticketing system i.e. technology, share the revenue, etc. both TransJakarta Busway and Commuter Train Jabodetabek. 4) By creating a single company in developing a ticketing system is purpose to implement the same system of ticketing that lead to the specification of technology, and easier to evaluate the services. 5) Further, the companies (TransJakarta Busway and Commuter Train) elaborate to make an integration facility and information.

83 71 Table 6.2. Cont d. STAGE OF IMPLEMENTATION TICKETING SYSTEM OF PUBLIC TRANSPORT IN JAKARTA, INDONESIA TICKETING SYSTEM TIME PERIOD DESCRIPTION PROPOSED TransJakarta Busway and Commuter Train Jabodetabek Each public transport operator has implemented e-ticketing system i.e. Comet Card and Jak Card, but still not integrated. - Build cooperation between public transport operator in Jakarta through an agreement to provide card reader or ticketing machine in every shelter of TransJakarta Busway and Commuter Train Jabodetabek. - This is supposed to increase flexibility of public transport, whereas the Jak Card Holder enables to use commuter train and vice versa. The tariff is according to the ticket price that implemented by each public transport operator. - Further, the public transport operator can improve to be one card for both public transport operator i.e. TransJakarta Busway and Commuter Train Jabodetabek. If customers use transjakarta busway then machine or card reader will deduct the transjakarta tariff as well as Commuter Train Jabodetabek. - By a new integrated ticketing system the public transport operator have possibility to implement several type of ticket prices as example in Sweden. - This is supposed to increase attractiveness of passengers to use public transport services.

84 72 Table 6.2. Cont d. SEVERAL STAGES OF CREATING AN INTEGRATED TICKETING SYSTEM IN JAKARTA, INDONESIA Government (Central and provincial government) have been consider to make an integrated public transport system in Jakarta, Indonesia. This is can be shown from the development of public transport facility in Jakarta that started to connected between train station and shelter of TransJakarta Busway, although some of facility are not yet connected. Further, the system of information need to be developed into an electronically way and easier for passengers to get an information related the services. ( For the First steps) * Agreement to provide the device with function of card reader in train station and shelter of TransJakarta Busway. * The smart card is possible to charge with subcription/ abonemen and cash money for using the other public transport services. The smart card can be used for TransJakarta Busway and Commuter Train Share the Revenue? Each machine/card reader will deduct the tariff according to the services that use by passengers and directly sent to the account of public transport operator through on their clearing centre. The machine will deduct the tariff of TransJakarta Busway as IDR 3,500 for all zone and IDR 8,000 for Commuter Train depend on the route. The ticket price of TransJakarta Busway and Commuter Train is still use the flat tariff as explained in Chapter 4 page 32 and 37.

85 73 Table 6.2. Cont d. ( Future Planning Public Transport System in Jakarta Based on the Experience of Public Transport in Värmland, Sweden) Partnerships between TransJakarta Busway and Commuter Train Jabodetabek (KCJ) to develop the ticketing system together. Supporting by Central and Provincial government. One Company to provide and manage ticketing system * One system of ticketing; * Single company to manage the ticketing system as well as became a clearing centre; * This company also have responsibility to guarantee the integrity and technical standards of technology and smart card. Share the Revenue? Each machine/card reader will deduct the tariff according to the services that use by passengers and the revenue directly sent to the account of public transport operator. ( Illustration of Share Revenue Scheme) Passenger will charge IDR. 8,500 depend on the route commuter AC Save in Data Base and then share to the company account At the first implementation phase of an integrated ticketing system, it s only integrated payment and ticketing system. PROPOSED - Further, the companies can develop into combined or integrated fare system. - Offers the attractive tariff that described in Chapter 4 related the ticket price of public transport in Värmland, Sweden. Passenger will charge IDR. 3,500 For single trip.

86 74 Table 6.2. Cont d. STAGE OF IMPLEMENTATION TICKETING SYSTEM OF PUBLIC TRANSPORT IN VÄRMLAND, SWEDEN Years of Since ( Implemented e-ticketing system for Karlstad Buss and Visa Card for Varmlandstrafik AB and at this time still enable for cash money) Public Transport in Värmland, Sweden i.e. Värmlandstrafik AB and Karlstad Buss On 2010 April 2012 Started on 2010 the passengers not allowed to pay using the cash money, and the passengers paid using the smart card and Turkronor (Karlstad Buss), visa card (Värmlandstrafik AB), and ATM or credit card. May 2012 Started on May 2012, the public transport operator in Värmland, Sweden i.e. Värmlandstrafik AB and Karlstad Buss have been developed the ticketing system together, and as the result is implement to use magnetic card. They make a procurement process together to determine the company who have responsibility to manage the e-ticketing system, and BIMS KB is a company who stand the procurement process to provide and manage the ticketing system. Future planning of development an integrated ticketing system: The new system will make an integrated ticketing system between eight public transport companies in the middle of Sweden i.e. Dalatrafik, Värmlandstrafik, Karlstadsbuss, Länstrafiken Örebro, Västmanlands länstrafik, Tåg i bergslagen, Upplands Lokaltrafik, and X-trafik. These public transport companies operate in six regions such as Dalarna County, Värmland County, Örebro County, Västmanland County, Uppland County, and Södermanland County.

87 75 Table 6.2. Cont d. PREVIOUS SYSTEM (SHARE THE REVENUE) Karlstad Buss In this card passengers can have: * Monthly or period card for Karlstad Buss. * Charge with cash money for Värmlandstrafik AB. How to share the revenue? -When using Karlstad Buss automatically the machine will deduct the tariff for Monthly or period card. - The single ticket price is consist of three category for children, young, and adult. Then the single ticket enable for 2 hours. - The other ticket prices is subcription tickets as explained in Chapter 4 page 45, 46, and Further, when using Värmlandstrafik AB, the machine will deduct the tariff from the cash money. Which means the customer need to charge again for use the services, although they have a subscription/period tickets for Karlstad Buss.

88 76 By using this card passengers can be used as monthly or period card for Värmlandstrafik AB and Karlstad Buss that explained in Chapter 4 page Futher, the single trip prices for Värmlandstrafik AB classified base on the Zone of services. How to share the revenue? When using Värmlandstrafik AB, passengers just shown the card to the driver as well as the Karlstad Buss driver, then the driver will count manually with push the button. Further, the company will paid for their customers who use Karlstad Buss. And it was fixed through an agreement between companies.

89 77 Table 6.2. Cont d. NEW SYSTEM IMPLEMENTED ON MAY 2012 (SHARE THE REVENUE) The ticketing system of Värmlandstrafik AB and Karlstad Buss manage by BIMS KB How to share the revenue? * When using Karlstad Buss automatically the machine will deduct the tariff as well as in Värmlandstrafik AB. * Then the passengers trips will receives and save in the data base. Using data in the data base, BIMS KB has a responsibility to share the revenue to the public transport operator and steps by steps this system will develop into make an integrated ticketing system between eight public transport companies in the middle of Sweden.