Sustaining Political and Financial Allocation as a Sustainable Approach in Transport Policy Development: The Case of Indonesia’s Railway during the Restructuring Process

This paper explores the introduction of transport policy instrumentation, namely the schemes of Public Service Obligation (PSO), Infrastructure Maintenance and Operation (IMO), and Track Access Charges (TAC) as a fundamental way of restructuring the Indonesian national railway system to clarify the relationships between government obligation and the commercial function of train operators. The first five-year implementation of the policies is analyzed to determine the convergence of their objectives and their achievements. Results show that current outcomes are not meeting the objectives because the policies have not been properly implemented. Specifically, funding allocation provided by the government was insufficient; the net payment system affects both present service performance and preparations for future development. In conclusion, sustained political action as a sustainable approach for allocating sufficient funds to the railway sector plays a critical role in improving the subsequent restructuring process of the Indonesian Railways system