| dc.description.abstract | SUTIA BUDI. The Role of Public Transportation Sector Investment on Regional Economic Growth and Sustainable Regional Development in DKI Jakarta. Supervised by AKHMAD FAUZI, ERNAN RUSTIADI, LALA M. KOLOPAKING.
The concept of sustainable development prioritizes the survival of future generations. Philosophically, Rustiadi et al. (2011) argue that the development process is a systematic and continuous effort to create conditions that provide various legitimate alternatives for achieving the most humanistic aspirations of every citizen; it is a process of humanizing humans. According to Fauzi (2022), sustainable development is a principle that must be adopted at all levels, from the sectoral, regional, and national to the global level. Fulfilling current needs without sacrificing those of future generations underscores the importance of maintaining the sustainability of natural resources and the environment. Bappenas published Indonesia's commitment to implementing the 2030 Agenda, including the 17 Sustainable Development Goals (SDGs). According to Weng et al. (2020) Sustainable development is a comprises economic, ecological, and social sustainability.
The public transportation sector plays a vital role in sustainable regional and local economic development. Investment in this sector has implications for economic growth, increased output and income, and employment. Various studies show that public transportation investment not only affects accessibility and population mobility but also generates multiplier effects on output, income, and employment opportunities across economic sectors (Banister & Berechman, 2001; Lakshmanan, 2011). The public transportation sector plays a strategic role in maintaining sustainable mobility and supporting economic activity in large cities in developing countries (Mupfumira & Wirjodirdjo, 2015; UNECE, 2016). Backward and forward linkages help strengthen regional economic structures and inter-regional integration. The limitation of this research problem is that it only examines the role of investment in the land transportation sector in DKI Jakarta.
The purpose of this study is to evaluate and analyze : 1) the role of investment in the land transportation sector in DKI Jakarta towards regional economic growth, in the context of regional networks for economic linkages between regions; 2) the performance of Transjakarta as a BUMD for land transportation and the local government's development policies supporting sustainable regional development. 3) the contribution of BUMD Transjakarta towards the economic development of DKI Jakarta.
This study uses a mixed-methods approach, combining quantitative and qualitative analyses. The Interregional Input–Output (IRIO) approach is used to analyze the role of investment in the land transportation sector in DKI Jakarta on regional economic growth, through backward and forward linkage mechanisms, and spillover effects (Miller & Blair, 2009; Isard et al., 1998). The performance of transportation BUMDs is measured by Cash Ratio, Return on Investment, and Return on Assets. Public policy analysis and contribution analysis are used to determine their contribution to the economic development of DKI Jakarta. A scatter plot in IBM SPSS Statistics is presented with descriptive statistics, illustrating the relationship between Regional Original Income (PAD) and Transjakarta performance indicators: operational income, number of passengers, capital investment, number of fleets, user satisfaction level, and operational efficiency.
The results of this study: First, investment in the land transportation sector plays a strategic role in driving regional economic growth in DKI Jakarta and its hinterland. The output multiplier of the public transportation sector in DKI Jakarta is 1.54-1.95. The output multiplier of the land transportation sector reaches 1.5412, meaning that every additional final demand of IDR 1 triggers an output of IDR 1.5412. The backward linkage for DKI Jakarta is 0.95, for West Java 1.09, and for Banten 0.96. The forward linkage for DKI Jakarta is 1.311, for West Java 0.96, and for Banten 0.73. The simulation results show that investing IDR 1 trillion in the land transportation sector in DKI Jakarta can generate a systemic output of IDR 1.5412 trillion, household income of IDR 245.3 billion, and the creation of 8,971 jobs. The land transportation sector in DKI Jakarta, as an enabling sector, strengthens backward and forward linkages and spillover effects.
Second, Transjakarta's regionally owned enterprise (BUMD) demonstrates relatively stable and sustainable performance, despite operating within a public service framework with a Public Service Obligation (PSO). Financial ratios are maintained and supported by provincial government policies through PSO, Regional Capital Participation (RCP/PMD), intermodal integration, and green transportation transformation. Financial performance for the 2018-2024 period is highly dynamic, influenced by internal factors, external pressures, and policy interventions. Revenue shows a growth trend. ROA has been declining since 2018, reflecting a decline in the company's ability to generate profits from managed assets. ROI is relatively stable at around 12–13% and will increase significantly in 2024, indicating potential for greater capital effectiveness and cost efficiency, in line with growth in passengers, revenue, and fleet modernization. The company's liquidity is very strong, with a cash ratio consistently above 100%. The high level of cash retained also indicates that resources are not being used optimally for investment. Non-farebox revenue is an effective policy for strengthening financial resilience. Transportation integration and green transport provide high public value, but the financial impact is long-term. The effectiveness of a policy depends on internal operations and the alignment between public and corporate objectives.
Third, Transjakarta's direct contribution to PAD is relatively small (average of 0.83%), though this does not capture the full picture. Transjakarta's role cannot be measured solely by its direct fiscal contribution to PAD, as it has a strategic function as economic infrastructure that supports community mobility and urban economic activity. The results of the scatter plot analysis show that the indicators directly related to the use of services by the community, namely the number of passengers, operational income, and user satisfaction, tend to have a stronger relationship to PAD compared to indicators related to the company's internal capacity, such as investment, number of fleets, and operational efficiency. Transjakarta's development strategy should be directed at improving service quality, expanding public access to public transportation, and increasing the number of users, meaning it should not only focus on adding assets. Transjakarta plays a role in driving urban mobility, supporting economic activity, and becoming an instrument for sustainable regional development.
Keywords: Land Transport Sector Investment, Regional Economic Development, Interregional Input–Output (IRIO), Sustainable Development. | |
