Yogayakarta Bus Terminal

The Private Provision of Municipal Infrastructure

By: D Yugesh Saai Reddy (Group 2)
 How did such a promising project based on public-private-
partnership go wrong ?

Low-value airline started to compete with bus and rail transportation in terms of pricing . Damage to street
infrastructure harm ,over a long period of time ,because of a earthquakes ( of 6.3 magnitude) that killed five
thousand human beings and ruined more than 35000 standing structures.The emergence of certain unlawful
terminals & 1 valid bus terminal out of the city, started competing with the Yogyakarta terminal.The elevated
ability of the bus terminal reduced the demand for complementary service which includes resorts and eating
places.

After the change in bus passenger activities, there was less need for supporting services such as motels and
restaurants. Bus travelers no longer need such services that are in turn heavily dependent on the general
public.. The government has not completely eliminated the illegal bus terminals. Falling airfares enable
customers to switch to alternative means of transport. Due to its advantageous location, the old terminal
attracted more and more traffic.
As an advisor to the Mayor, what would you advise - should the Mayor accept PTPK's
announcement to withdraw from the concession? Should the Mayor hold PTPK to his
contract ? Should the Mayor figure out a compromise solution ?

Yes, the Mayor should figure out a compromise Allow PTPK to develop commercial infrastructure while allowing a mechanism for
lower prices and the new facilities. The mayor should implement more incentives to encourage this mode of travel. Continue the
ban on unlawful bus terminals and a increase the clarity of the contract by enacting mechanisms to punish corrupt officials in the
municipality

Identify and describe how the risks have been taken care of by both the parties
– PTPK and the City Authority?

The identified risks are : 1) an increase in the number of unauthorized terminals in the city, 2) inadequate emergency
planning for emergencies such as earthquakes 3) regulatory concession agreements under which PTPK will first build the
bus terminal, then stock the center sequentially in that order.

Steps taken are : 1) Mayors attempts to eradicate unlawful terminals were not entirely successful, owing to the corruption
amongst low-level municipal employees. 2) With the commercial side supposed to make up the bulk of the turnover, the
hiring of a new manager from PT Mathari, a well-known Indonesian department store, to entice the company to become
an anchor tenant of the commercial centre and to persuade additional firms to build stores, offices, and shops in Giwangan.