2.1 Final Project Revised - Felik Widyo Makuprathowo

POLICYMAKING POST COVID-19 USING BEHAVIOURAL
NUDGES FOR PUBLIC TRANSPORT IN JABODETABEK
FINAL PROJECT
By:
FELIK WIDYO MAKUPRATHOWO
29319125
Master of Business Administration Program

School of Business and Management
Bandung Institute of Technology
2020
POLICYMAKING POST COVID-19 USING BEHAVIOURAL NUDGES FOR
PUBLIC TRANSPORT IN JABODETABEK
Felik Widyo Makuprathowo
NIM: 29319125
Date of Passing of Final Test (25/01/2021)
Date of Graduation Ceremony (April 2021)
Master’s Program, Bandung Institute of Technology, 2020
Final Project Advisor: Dr. Agung Wicaksono, M.Sc., MBA
ABSTRACT
The COVID-19 pandemic has forever changed the way people behave, in public
transportation, the pandemic has brought massive shock to the system, effectively dropping
demands, revenue and poses a threat to the survival of the business and its key stakeholders.
In this paper, we will take a look into policy intervention strategy utilizing behavioural
economics principles and nudge to try to come up with ways to nudge people the right way,
into growing confidence whilst adhering to safety and health protocols, be responsible to
him/herself and if possible, to others. These interventions, we call them to nudge, are sets of
choice designed deliberately to spark people’s heuristics and thinking system into making the
right decision.
The idea of having a nudge, that characteristically and uniquely voluntary stemmed from
behavioural science research, originally conceived in the 70s by psychologist and economist
Amos Tversky and Daniel Kahneman, and made famous by recent studies by Richard H Thaler
and Cass Sunstein. These research into behavioural science unfolds a true yet often forgotten
nature of how human thinks, our mind works remarkably well oftentimes, yet we are clueless
some of the other time, that doesn’t mean something is wrong with us as humans, but it does
mean that our understanding of the way we behave can be improved by appreciating how
people systematically go wrong.
We will delve further into how the nudge approach can make a difference to road-based public
transportation in Indonesia, what makes them effective, and how we, as policymakers or
rather, choice architect, can harness it to nudge people into the right decisions and alter
passenger behaviour to adapt to the new, brave new post COVID-19 world by first examining
the systemic thinking that is embedded deep within our minds, starting with the way we have
2 system; reflective and automatic, followed by the many fallacies and heuristics that are well
defined by the behavioural scientists in the past decades, how to harness those fallacies, and
how to become a choice architect, the one that utilized the behavioural knowledge into his and
the people’s gain, without coercive actions and involving free will, the term is Nudging.
The research is based on qualitative research and findings in cooperation with the Ministry of
Transportation of the Republic of Indonesia with custom research methodologies consisting
of several data gathering activities from Focus Group Discussions, Webinars and Online Polls.
These methods are chosen because of their effectiveness in grasping the behavioural traits,
focus, needs and wants of all the Public Transportation stakeholder.
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The research also employs systemic framework called the 4Ps Framework of Behavioural
Change, this framework is developed by a team of Behavioural Scientist at Yale University
and was originally conceived with nudging diet behaviour of people and study into the
decision-making processes on diet and eating.
In this research, the 4P framework is joined by the Nudge Framework to generate insights and
planning on how to nudge the Public Transportation customers in Indonesia to support the
development and penetration of Public Transportation, becoming an agent of change by
adhering to health & safety protocols and reduce crowding in sensitive places such as transit
stations, etc.
Keywords: behavioural science, behavioural economics, nudge, public transport,

policymaking, COVID-19, regulation, road-based transportation
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PEMBUATAN KEBIJAKAN PASCA ERA PANDEMI COVID-19
MENGGUNAKAN PENDEKATAN DORONGAN PERILAKU UNTUK
USAHA TRANSPORTASI UMUM DI JABODETABEK
NIM: 29319125
Tanggal Kelulusan Sidang (25/01/2021)
Tanggal Wisuda (April 2021)
Program Magister, Institut Teknologi Bandung, 2020
Pembimbing Thesis: Dr. Agung Wicaksono, M.Sc., MBA
ABSTRAK
Pandemi COVID-19 telah selamanya merubah cara manusia berperilaku, khususnya di dalam
ranah bisnis angkutan jalan publik, pandemi ini telah menyebabkan permintaan terhadap
transpotasi umum jatuh ke level yang terendah dalam sejarah, turunnya penghasilan operator
angkutan jalan menyebabkan banyak resiko muncul dan mengancam keberlangsungan usaha
transportasi umum di Indonesia.
Pada penelitian ini, kita akan melihat bagaimana intervensi dalam bentuk kebijakan / protocol
yang berorientasi pada ekonomi perilaku dan prinsip nudge dapat menghasilkan ide-ide untuk
membantu stakeholder dan pembuat kebijakan menciptakan transportasi jalan raya yang lebih
dipercaya, menumbuhkan kepercayaan pelanggan, mendorong perilaku sehat berkendara dan
protocol Kesehatan, bertanggung jawab atas keselamatan dirinya sendiri dan dengan sukarela
menyadari pentingnya bertanggung jawab atas keselamatan orang lain, mengurangi
penyebaran COVID-19 sekaligus mengembalikan permintaan akan angktan jalan raya,
sebagai symbol keberhasilan dan kemajuan suatu negara.
Ide terkait nudge, yang memiliki karakteristik unik yaitu dorongan perilaku yang bersifat
sukarela dan demi kebaikan Bersama, diawali dari penelitian mengenai perilaku manusia di
tahun 70an oleh peneliti, psikolog dan ekonom Amos Tversky dan Daniel Kahneman, dan
dibuat terkenal oleh studi terbaru yang dibuat oleh Richard H Thaler dan Cass Sunstein.
Penelitian-penelitian terkait ilmu perilaku banyak membuka hal baru yang sering tidak
disadari namun sangat penting dan nyata, bahwa pikiran manusia meski dapat bekerja dengan
sangat baik, terkadang, bahkan seringkali, melakukan kesalahan dalam pengambilan
keputusan, hal ini bukan berarti ada yang salah dengan cara berpikir kita, melainkan
pemahaman kita tentang bagaimana kita bersikap dapat diperbaiki dengan menelisik kenapa
pemikiran manusia kerap kali salah secara sistematis.
Kita akan terjun langsung ke bagaimana pendekatan nudge dapat menghasilkan sebuah
perbedaan dalam industry bisnis angkutan jalan di Indonesia, apa yang membuat nudge itu
efektif, dan bagaimana kita sebagai Arsitek dari serangkaian pilihan, dapat menggunakan
aspek-aspek perilaku dan segala bias dan blunder yang mengikutinya, menjadi senjata utama
dalam merubah, mendorong dan memperbaiki perilaku penumpang sehingga dapat
beradaptasi dengan kondisi baru, dunia pasca pandemic COVID-19 dengan pertama-tama
memeriksa cara berfikir manusia yang memiliki 2 sistem di saat yang bersamaan yaitu:
reflektif dan otomatis, diikuti dengan studi akan bias dan kecenderungan irasional kita yang
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telah di pelajari dan didefinisikan terlebih dahulu oleh para ahli ekonom perilaku, kemudian
bagaimana car akita memanfaatkan kecenderungan-kecenderungan tersebut untuk membuat
kita menjadi Arsitek pilihan, pembuat kebijakan intervensi yang menyadari betul pentingnya
memahami cara piker manusia sebelum membuat kebijakan.
Riset ini didasari dari penelitian kualitatif dan penemuan-penemuannya yang bekerja-sama
dengan Kementerian Perhubungan Republik Indonesia dengan metodologi yang dirancang
khusus yang terdiri dari aktifitas Focus Group Discussion (FGD), Webinar dan Survei Daring.
Metode-metode ini dipilih dikarenakan efektif dalam menangkap perilaku pelanggan
transportasi jalan dan kebutuhan serta visi misi para pemangku kebijakan dan kepentingan
transportasi public.
Penelitian ini juga menggunakan sebuah kerangka kerja bernama kerangka kerja 4P untuk
perubahan perilaku yang dikembangkan oleh sekelompok ilmuan perilaku di Yale University
yang awalnya dibuat untuk studi nudge terhadap perilaku makan manusia.
Kali ini, kerangka kerja 4P ini akan digabungkan dengan kerangka kerja nudge untuk
menghasilkan ide dan perencanaan terkait implementasi nudge di transportasi public di
Indonesia, dan juga mendukung pengembangan transportasi umum di Indonesia dengan
menjadi agen perubahan yang mengikuti protocol Kesehatan, mengembalikan kepercayaan
diri pelanggan terhadap angkutan umum dan mengurangi kerumunan dan perilaku tidak sehat
lainnya dengan cara nudge.
Kata Kunci: Perilaku Manusia, Ekonomi Perilaku, Dorongan Perilaku, Nudge,

Transportasi Publik, Pembuatan Kebijakan, COVID-19, Regulasi, Angkutan Darat
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VALIDATION PAGE
POLICYMAKING POST COVID-19 USING BEHAVIOURAL

NUDGES FOR PUBLIC TRANSPORT IN JABODETABEK
By:
FELIK WIDYO MAKUPRATHOWO

NIM: 29319125
Master of Business Administration Program
School of Business and Management
Bandung Institute of Technology
Approved,
Jakarta,
Final Project Advisor
Dr. Agung Wicaksono, M.Sc., MBA
vi
ACKNOWLEDGEMENTS
My deep gratitude goes first to Dr Agung Wicaksono, who not only expertly guided
me through my final project research, but also giving me the best opportunity to learn,
to adapt, to study, to understand, to follow, and to lead. Pak Agung has been the best
coach, the best leader, the best advisor, whose insights, leadership has been so
inspiring. The author would like also to express his gratitude and appreciation to all
lecturers of the faculty at School of Business and Management, Institut Teknologi
Bandung (SBM ITB), Dr Yudo, Dr Yos, Dr Yunieta, Prof Andy Do and all of SBM
ITB staffs of Jakarta campus for all kinds of support and tutelage.
To Prof. Richard H. Thaler and Prof. Cass Sunstein, the author is blessed with the
discovery of their live-changing book, Nudge, that has inspired the author countless
times and ignite the fiery spark to improve his life and his decision making.
Special gratitude goes towards the authors' parents, Maria and Yohanes, his better half
and the love of his life, Dewi, for their support, encouragement and motivation to
complete his study. To his research assistantship partner and tandem, Alfin, the author
would like to thank him for all his outside the box ideas, and to his foremost colleague
in SBM ITB, John, for the friendship and support during his study. To all fellows of
BLEMBA 26 of SBM ITB, the author felt nothing short of an honour to have known,
to have worked with and to be part of the everlasting family for the future. Another
one goes to Bullish 26 club and everyone behind the steep learning curve where the
knowledge shared through countless hours of discussion have been tremendous and
probably has helped nudge the nation’s GDP by a respectable degree, every little bit
helps anyway.
Finally, to SBM ITB Cluster 3 Research Team, to which without these groups of
amazing and smart people, the author wouldn’t succeed in this research, the author
would like to say thank you so much. To the Ministry of Transport and its Policy
Research & Development division, thank you for the opportunity and nice cooperation
during initial research and the ongoing journal publication works, especially for Ms
Reni & Ms Listifadah as the head of Balitbang for their support, insights and in co-
authoring the research to be published internationally.
Lastly, it is the author wish, that this research can bring value to the SBM ITB
community, the society and its people and the advancements of Indonesian Road-
Based Public Transportation business.
Jakarta, 23rd December 2020
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TABLE OF CONTENTS
ABSTRACT ................................................................................................................ ii
ABSTRAK ................................................................................................................. iv
VALIDATION PAGE .............................................................................................. vi
ACKNOWLEDGEMENTS .................................................................................... vii
TABLE OF CONTENTS ......................................................................................... ix
LIST OF FIGURES ................................................................................................. xii
LIST OF TABLES ................................................................................................... xv
CHAPTER 1 INTRODUCTION ............................................................................ 19
1.1 Background ...................................................................................................... 19

1.1.1. The biggest disruptions in 2020 ............................................................... 19
1.1.2. Behavioural Economics for Public Policy ............................................... 20
1.1.3. Adopting Nudge Principles...................................................................... 21
1.2 Public Transport Stakeholder & Policymakers ............................................... 22

1.2.1. Ministry of Transport – Land Transport Directorate ............................... 23
1.2.2. Organda (Organisation of Local Public Transportation) ......................... 23
1.2.3. PT Transportasi Jakarta (TransJakarta) ................................................... 24
1.2.4. DAMRI .................................................................................................... 25
1.2.5. PT Kereta Api Indonesia (Persero) .......................................................... 25
1.2.6. PT Mass Rapid Transit Jakarta (Perseroda) ............................................. 25
1.2.7. Masyarakat Transportasi Indonesia (MTI) .............................................. 26
1.3 Problem Formulation ...................................................................................... 26

1.4 Research Objective .......................................................................................... 29
1.5 Research Questions.......................................................................................... 29
1.6 Research Scope & Limitation .......................................................................... 29
CHAPTER 2 BUSINESS ISSUE EXPLORATION ............................................. 31
2.1 Literature Review ............................................................................................. 31

2.1.1. Behavioural Economic Study .................................................................. 31
2.1.2. How We Think, the 2 System .................................................................. 32
2.1.3. Behavioural Nudge & Choice Architect .................................................. 36
2.2 Harnessing Biases as Implementation Strategy............................................... 37

2.2.1. Anchoring Effect...................................................................................... 38
2.2.2. Loss Aversion .......................................................................................... 40
2.2.3. Status Quo Bias........................................................................................ 41
2.2.4. Framing Strategy...................................................................................... 42
ix
2.3 Conceptual Framework ....................................................................................43
2.3.1. Nudge & 4Ps Intervention Framework for Behavioural Change .............43
2.4 Research Methodology .....................................................................................46

2.5 Data Gathering .................................................................................................47
2.5.1. BlueBird Group ........................................................................................47
2.5.2. Gojek ........................................................................................................48
2.5.3. Grab Indonesia..........................................................................................48
2.5.4. GEGE Transport .......................................................................................49
2.5.5. MGI Bus ...................................................................................................49
2.5.6. SAN Bus ...................................................................................................49
2.6 Data Gathering Details ....................................................................................49

2.7 Data Gathering & Research Team ...................................................................50
CHAPTER 3 DATA ANALYSIS & BUSINESS SOLUTION .............................53
3.1 Behavioural Insights on Road-Based Public Transportation in Indonesia......53

3.1.1. FGD Data Insights ....................................................................................54
3.1.2. Survey Data Insights.................................................................................59
3.1.3. Webinar on Road-Based Transport Resiliency During Pandemic ...........63
3.1.4. Commuting Experience and Observation Process ...................................64
3.2 Implementing Nudge Strategy ..........................................................................66

3.2.1. Implementing Behavioural Nudge Framework Strategy ..........................66
3.2.2. Nudging Public Transport in Indonesia ....................................................68
3.2.3. Other Nudges to Consider ........................................................................76
3.2.4. Psychology of Space: How Design Impact Behaviour.............................76
CHAPTER 4 CONCLUSION AND IMPLEMENTATION PLAN .....................82
4.1 Conclusion ........................................................................................................82

4.2 Recommendation ..............................................................................................85
4.3 Implementation Plan ........................................................................................86
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xi
LIST OF FIGURES
Figure 1.1 Aggregate Data of Visitor Trend in Transit Stations ................................20

Figure 1.2 Daily New Cases of COVID-19 in Indonesia ...........................................21
Figure 1.3 Organisational Structure of the Ministry of Transport ..............................23
Figure 1.4 PT Transportasi Jakarta Daily Ridership Trends Before and During PSBB
....................................................................................................................................24
Figure 1.5 Changes in Passenger Volume in Class-A Bus Terminal from January –
September 2020 ..........................................................................................................27
Figure 2.1 Typical Human Thinking Fallacies. ..........................................................31
Figure 2.2 Map of London showing rocket strikes during World War II ..................34
Figure 2.3 Map of London showing rocket strikes during World War II with vertical
& horizontal grid ........................................................................................................35
Figure 2.4 Map of London showing rocket strikes during World War II with diagonal
grid ..............................................................................................................................36
Figure 2.5 Designing choice architecture for people by putting healthier food options
closer and easier to obtain. Illustration from Homer Simpsons. ................................37
Figure 2.6 The Economist Subscription with 3 Options Available ............................39
Figure 2.7 The Economist Subscription with 2 Options Available ............................39
Figure 2.8 Proportions of People Agreeing to Donate Their Organs by Country ......41
Figure 2.9 Opt-In vs Opt-Out Default Plays a Huge Role in Nudging People’s
Decision ......................................................................................................................41
Figure 2.10 Conceptual Framework in Policy Intervention .......................................43
Figure 2.11 Yale’s 4P Framework for Behavioural Change ......................................44
Figure 2.12 Yale’s 4P Framework for Behavioural Change ......................................45
Figure 2.13 Final Projects’ Research Methodology for Road Based Public Transport
....................................................................................................................................46
Figure 3.1 TransJakarta implementation of behavioural nudge in ensuring social
distancing ....................................................................................................................57
Figure 3.2 TransJakartas implementation of behavioural nudge in ensuring health
protocol implementation .............................................................................................58
Figure 3.3 JakLinko implements nudge at a first mile to ensure robustness and
synergy between modes ..............................................................................................58
Figure 3.4 Human Covid-19 standing inside TransJakarta transit station ..................61
Figure 3.5 Word Cloud generated from an online survey on behaviour during
COVID-19 Pandemic .................................................................................................62
Figure 3.6 Behavioural Shift on Preferred Payment Method .....................................62
Figure 3.7 September 18th Webinar & When Group Present Research Findings ......64
Figure 3.8 Projects’ Conceptual Framework of Nudging People for Public Transport
....................................................................................................................................66
Figure 3.9 Triangulating Several Methods to Confirm Observation ..........................67
Figure 3.10 Triangulation Analysis Result .................................................................67
Figure 3.11 Jak Lingko’s Single Card can be used in MikroTrans, MiniTrans,
TransJakarta, MRT, KRL ...........................................................................................70
Figure 3.12 Illustration for Proposed Jak Lingko’s Upcoming Nudge ......................72
Figure 3.13 Poll result in 3 different subscription plans.............................................73
Figure 3.14 Poll result on 2 subscription plans ..........................................................73
Figure 3.15 Increase on Ultra subscription by inventing a “dummy” choice.............73
Figure 3.16 Illustration for Shared Space in Jakarta’s Thamrin street, marking the
division of public & private space, urban planning such as these are crucial to
implementing markings and other behavioural intervention. .....................................77
xii
Figure 3.17 Platform Screen Door at MRT Jakarta, with floor sign designed to nudge
people into queueing and prioritizing the exiting passengers .................................... 78
Figure 3.18 MRT nudge for reducing Covid-19 transmission................................... 78
Figure 3.19 MRT nudge for reducing Covid-19 transmission................................... 79
Figure 3.20 Typical MRT station (elevated) design in Jakarta.................................. 79
Figure 3.21 Typical TransJakarta BRT station design in Jakarta .............................. 80
Figure 3.22 Typical KRL Station Platform, with no queue line due to KRL
unpredictable stop behaviour ..................................................................................... 80
Figure 4.1 Behaviour Modification Implementation Using Nudge Plan Involving 6
Steps Guide ................................................................................................................ 88
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xiv
LIST OF TABLES
Table 1.1 Passenger Volume in Class A Bus Terminal from Jan – Sept 2020 .......... 28
Table 2.1 Two cognitive systems .............................................................................. 33
Table 2.2 FGD 1 & FGD 2 Session Details ............................................................... 50
Table 2.3 ITB COVID-19 Pandemic on Road-Based Public Transport Research
Team (June-Sept 2020) .............................................................................................. 51
Table 3.1 Summary of FGD 1 conducted on July 14th 2020 through zoom internet
video conference ........................................................................................................ 55
Table 3.2 Summary of FGD 2 conducted on August 4th 2020 through zoom internet
video conference ........................................................................................................ 56
Table 3.3 Increase in Capacity of TransJakarta to balance the capacity cut and city
odd-even policy.......................................................................................................... 59
Table 3.4 Survey Result on Shifts in Passenger Priorities ......................................... 60
Table 3.5 Session List of Transportation Webinar (in order) .................................... 63
Table 3.6 Jak Lingko’s Integration with Multi Modes of Transportation as per
September 2020 ......................................................................................................... 70
Table 3.7 4Ps Nudge to Improve Ridership and Boosting Confidence Through Sense
of Ownership.............................................................................................................. 71
Table 3.8 4Ps Nudge to Improve Passenger Awareness on COVID-19 Pandemic
Severity ...................................................................................................................... 74
Table 3.9 4Ps Nudge to Manage Crowding and Reduce Public Health Risk ............ 75
Table 4.1 Traditional v. Nudge Approach in Marketing Public Transportation........ 86
xv
xvi
LIST OF ABBREVIATION AND ACRONYMS
4P Possibilities, Process, Persuasion, Person

BALITBANG Badan Penelitian dan Pengembangan
BRT Bus Rapid Transit
COVID-19 Novel Coronavirus Disease – 2019-CoV
DAMRI Dalam Negeri
DISHUB Dinas Perhubungan
DKI Daerah Khusus Ibukota Jakarta
FGD Focus Group Discussion
JABODETABEK Jakarta, Bogor, Depok, Tangerang, Bekasi
ITB Institut Teknologi Bandung
KAI Kereta Api Indonesia
KEMENHUB Kementerian Perhubungan
LRT Light Rail Transit
MOT Ministry of Transport of the Republic of Indonesia
MRT PT Mass Rapid Transit (Perseroda)
MTI Masyarakat Transportasi Indonesia
ORGANDA Organisasi Angkutan Darat
PSBB Pembatasan Sosial Skala Besar
PSD Platform Screen Door
PSO Public Service Obligation
RCT Randomised Control Trial
SBM Sekolah Bisnis dan Manajemen
SI Sistem Informasi
SIASATI SI Angkutan dan Sarana Transportasi Indonesia
SIF Supposedly Irrelevant Factor
SLA Service Level Agreement
TJ Trans Jakarta
UGM Universitas Gadjah Mada
UK United Kingdom
US United States
WHO World Health Organisation
YLKI Yayasan Lembaga Konsumen Indonesia
xvii
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CHAPTER 1
INTRODUCTION
1.1 Background
1.1.1. The biggest disruptions in 2020
After a relatively slow and scattered response to the global pandemic known as COVID-
19, the Indonesian government has in the past several months assumed what is
essentially a delicate footing on handling the biggest disruptions in 2020 impacting the
lives and livelihood of billions of people all over the world.
The primary approach that the government took is the enactment of the Large-Scale
Social Restrictions (LSSR) (Indonesian: Pembatasan Sosial Berskala Besar or PSBB),
these restrictions are being implemented by the local government with approval from
the Ministry of Health, the primary focus is on curtailing the spread of the virus while
providing medical capacity to treat people contracted by Covid-19. It includes measures
such as restricting public transport, limiting travel to and from restricted regions to
barring public gatherings, limiting businesses and closing of public places.
People’s mobility has declined all over the world as a first impact reaction on March
2020, the most rapid decline is from public transportation business, with data from
google mobility suggesting an uncontrolled dive throughout the world. Here at home,
the figure represents the same predicament; Public Transport is among many businesses
in Indonesia being hit the hardest by the COVID-19 pandemic, this is apparent by the
sharp decline in demand (see figure 1.1 below) and record-setting negative growth in
the overall industry performances (Statistics Indonesia, 2020). The Public
Transportation crises were triggered, among many, by imposed regulation and perceived
risk believed by the public of Public Transportation as a place to contract COVID-19
virus.
At its core, the Jabodetabek road transport business is supported by both government in
the form of Public Service Obligation, for several years, the integration of routes,
corridors and operator licensing and non-integrated operator/providers ranging from
city buses, interstate buses, taxis, angkots and ojeks and government policies have a
direct consequence on the fluctuation of demands and passenger’s overall mobility.
19
Figure 1.1 Aggregate Data of Visitor Trend in Transit Stations
Source: Google Mobility Report aggregated by Our World in Data, Feb 17th – Sept 1st 2020
The pandemic and the views held by the policymakers (both central and provincial
government) has resulted in the biggest disruption of daily life that many Indonesians
have ever known. This disruption has lasted for months, and still going on today. It has
forever changed the perspectives, priorities, confidence, and demands for Public
Transport in Indonesia, especially in JABODETABEK (Jakarta, Bogor, Depok,
Tangerang & Bekasi greater area), effectively reducing the number of passengers,
subsequently cutting down revenues and putting companies, public and private entities
at risk and vulnerabilities.
1.1.2. Behavioural Economics for Public Policy

With the ever-increasing number of recorded COVID-19 cases in Indonesia, it is clear
that health protocols, regulations, government communications and appeal to the public
are keys to curtailing the virus transmission, especially as a guideline for transport
providers and transport facility owners that are thought to have a high contagion rate
due to its congested and enclosed nature although with little evidence of such claims.
20
Figure 1.2 Daily New Cases of COVID-19 in Indonesia
Source: Ministry of Health aggregated by Google, Mar 15th – Oct 2nd 2020
The World Health Organization (WHO) published information that the COVID-19 virus
may linger in the air in crowded indoor spaces, propelling the tale that the virus may be
airborne. Although the information is labelled as doubtful even by WHO, public
consensus on how the virus operates was perfectly shaped and directly impact the
personal decision-making process. This is known as availability heuristics and is one of
many types of cognitive biases that are apparent and yet often missed when inventing
public policies.
The Indonesian authorities, as with the majority of authorities elsewhere in the world,
react to the pandemic in both advisory and enforcement capacity, with one of the early
focus being the effort to curb crowding on the use of public transportation with several
revisions on public policy that far from being strict and ended up balancing between
public health and economic. Bus, trains, MRT and LRT capacity has been capped by
50% to promote social distancing, several cities tried to enact several forms of
lockdown, but the central government remains vigilant with finding the right balance of
policy that can save lives but not devastating for the economy and adaptable to
Indonesian public behaviour with its deep social culture
1.1.3. Adopting Nudge Principles

The term Economic Man or Homo economicus was used for the first time in the late
nineteenth century by critics of John Stuart Mill's work on political economy. Today,
it's regarded as an approximation model of Homo sapiens that acts to obtain the highest
possible well-being for him or herself given available information about opportunities
and other constraints, both natural and institutional, on his ability to achieve his
21
predetermined goals. This approach has been formalised in economics and then assumed
as the default model to base a policymaking formulation.
In recent years, a new paradigm of economics has arisen which questions the traditional
economic theories that have prevailed for over half a century. This is due to the merging
of a psychology and behaviour insights found their way into the now-recognized field
of behavioural economics. The study comparison between what “Human” does when
faced with real-world choices with what an “Econ” does with choices based on
theoretical principles is at the premiere of this whole new approach to policymaking
procedures, with the introduction of choice architecture as opposed to traditional
policymaker terms.
It is within the research objective to study how we can create environments or ‘choice
architecture’ to help people make better decisions. But what would be so influential and
more important is because it should help us understand why people sometimes make
bad decisions in the first place (Richard Thaler, 2015). If we want to understand how
we can nudge people into making better choices, it’s important to understand why they
often make such poor ones. This research will delve into the Nudges principle through
understanding Humans biases, and to address several misconceptions about Nudges and
how we, as a choice architect, design a positive reinforcement to effectively propel
policies that used to be mandatory and negatively received and often ineffective into
policies that set the waves of behavioural changes.
Understanding that as a choice architect, we are dealing with Humans, rather than
Econs, we need to understand that they sometimes need help. The objective of the
Nudge approach is to think of a way to help people without forcing anybody to do
anything. In other words, as a choice architect, we are not mandating anything, and how
much can we do with those restrictions. Also, in other words, how we help Nudge people
in the right way.
1.2 Public Transport Stakeholder & Policymakers

Here is the list of transport providers in JABODETABEK greater area that influence
how transportation business emerges and how their strategy helps define great
policymaking during pandemic times, these provides are also heavily involved in this
research, they are:
22
1.2.1. Ministry of Transport – Land Transport Directorate
The Indonesian Republic Ministry of Transport (Kemenhub RI) is a ministry within the
Indonesian government covering transportation (land, sea, and air), currently the
minister of transport is Budi Karya Sumadi. Primary missions of Kemenhub RI are to
direct operations, devise and supervise regulations concerning:
1. Making, deciding, implementing public policies on transportation;
2. Management of nations’ assets concerning transportation;
3. Supervising task implementation within the ministerial area;
4. Providing technical assistance and supervision on all transportation issues;
5. Implementing nation-wide technical activities concerning transportation
Structure wise, this research is a product of cooperation with land transport directorate
(direktorat perhubungan darat) and its research centre (badan penelitian dan
pengembangan).
Figure 1.3 Organisational Structure of the Ministry of Transport

Source: Ministry of Transport Website
1.2.2. Organda (Organisation of Local Public Transportation)

ORGANDA is a group of transport organisations and companies established in 1962 in
Selecta, Malang as a way to consolidate and regulate transport businesses during early
decades of independence and to provide guidance, training, and assistance to all of its
23
member (public transport provider). ORGANDA is acknowledged as the only
organisation of public transport by the government through the ministry of transport
letter on June 17th 1963.
1.2.3. PT Transportasi Jakarta (TransJakarta)

PT Transportasi Jakarta (TransJakarta) owns the longest Bus Rapid Transit (BRT)
system in the world (251,2km in length) and operates over 3900 buses. Before COVID-
19 pandemic in February 2020, it serves an average of 1.006 million passengers daily,
the number declined by up to 90,2% during early efforts to curb virus transmission in
the nation's capital.
Figure 1.4 PT Transportasi Jakarta Daily Ridership Trends Before and During PSBB
Source: PT. TransJakarta FGD Report
TransJakarta was built to provide a fast, comfortable, and affordable mass transportation
system. To accomplish those objectives, the buses were given lanes restricted to other
traffic and separated by concrete blocks on the streets that became part of the busway
routes. The first TransJakarta line opened to the public on 15 January 2004. It was free
for the first two weeks, after which commercial operations started on 1 February 2004.
Presently, TransJakarta has 13 primary routes and ten cross-corridor routes. Also, 18
"feeder" routes serving beyond the exclusive busway corridors to serve satellite cities
in Greater Jakarta. The number of TransJakarta buses has also increased dramatically,
from 605 buses in 2015 to 4300 in 2020, The fare has remained Rp 3,500 (27 US cents)
24
per passenger since operations began. The service set a record in 2018 when it carried
730,000 passengers per day, a significant jump from 331,000 per day in 2015 and a
product of its innovative service quality improvement. About 189.8 million passengers
used TransJakarta in 2018 and targeted to serve one million passengers daily. As of
September 2019, TransJakarta is currently testing electric buses, with Bundaran
Senayan – Monas as its first route.
TransJakarta is a state-owned enterprise and praised for its innovation and public service
level delivery. In October 2018, to improve last-mile ridership delivery, TransJakarta
began to integrate its fleet with a focus on expanding its close trunk system and the
connecting feeder system by implementing Jak Linko, effectively reducing traffic
congestion in DKI Jakarta caused by delays in the small feeder and angkots cycle time
whilst improving its service quality.
1.2.4. DAMRI
DAMRI, established in 1943, is an Indonesian state-owned public transit bus company.
It offers transit routes to and from major airports in the country, intercity buses and some
transborder routes into neighbouring nations. It also operates on three routes (corridor
1, 8 and 11) of the TransJakarta busway. With a total fleet of almost 3,000
units, DAMRI operates in most areas in Indonesia and considered pioneering bus
providers.
1.2.5. PT Kereta Api Indonesia (Persero)

PT Kereta Api Indonesia (Persero) is the major operator of public railways in Indonesia.
It is completely owned by the government and pays track access charges to the
government. One of its subsidiaries, PT KAI Commuter Indonesia, is operating
electrified commuter service in Jakarta metropolitan area since 14 August 2008.
1.2.6. PT Mass Rapid Transit Jakarta (Perseroda)

The Jakarta Mass Rapid Transit or Jakarta MRT is a rapid transit system in Jakarta, the
capital city of Indonesia. The system is operated by PT Mass Rapid Transit Jakarta, a
municipally-owned perseroan terbatas of the city of Jakarta. Phase 1 of the project was
officially opened on 24 March 2019.
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1.2.7. Masyarakat Transportasi Indonesia (MTI)
The Society of Transportation Indonesia, established in 1995 consisting of professionals
in the field of transportation from researchers, businessperson, practitioners, and
bureaucrats with a shared vision of supporting the development of national
transportation system and its advancements in Indonesia.
1.3 Problem Formulation

One way to think about the importance of designing choice architecture and policy
analysis based on behavioural economics is to consider how actual people differ from
those modelled in a standard economics model. According to Thaler, to do good
economics, you have to keep in mind that people are human (Thaler, 2002). One might
argue that the field of economics looks at people as “econs”—that is, they assume we
carefully weigh costs and benefits of alternatives before making decisions.
These “econs”, therefore, could be described as being analytical, reflective, effortful,

deliberate and patient. To be fully rational, an “econ” would also need to be well-versed
in probability theory and rational optimization. Thus, an “econ” would always make the
best choice given a set of alternatives. Does this sound like most people you know or
interact with? Behavioural economists don’t think so either. They instead think of
humans as using costs and benefits, but also being influenced by other factors when
making decisions.
Understanding the difference between “econs” and actual person, is crucial, albeit often
forgotten from the norms of building choice architecture. For example, there are many
shreds of evidence of public transportation space design process that didn't take into
accounts the actual human behaviour, such as how to make queue an easy thing,
enacting social distancing be the default behaviour, to mind other people and
responsible for the safety of him/herself and act for the benefit of others.
Secondly, although there have been many proponents to Evidence-Based

Policymaking, Policymaking and policy intervention itself has never been considered a
science or at least has never been acknowledged to have elements of evidence to back
its effectiveness. Examining whether governments should craft policy based on
evidence seems logical, but in reality, it has never been a case, for example, where
Indonesian public demanded programs to stand up to rigorous testing before the
26
government would pour taxpayers money on implementing it, nor pushing for
legislation to be backed by irrefutable data before it was published. This is in many parts
due to the lack of understanding on how to base the policymaking agenda (David
Halpern, UK Behavioural Insights Team, 2018).
For a policy to count as evidence-based, it must be evaluated utilising an empirical,

scientific method – ideally, a randomised control trial (RCT) (Cochrane, 1972). Using
RCT, researchers and policymakers can determine whether a targeted group fares better
or worse under a specific social intervention than a control group does without it. If it
does, the program can be said to work. It can then be rolled out to more people; if not,
the RCT can help identify faults in said policies.
The COVID-19 pandemic has brought down disaster upon public transportation
business in Indonesia. The industry has been hit hard and is trying hard to recoup from
the downfall and diminished sales.
Figure 1.5 Changes in Passenger Volume in Class-A Bus Terminal from January – September 2020
Source: SIASATI, 2020
These are data plotted from SIASATI (Sistem Informasi Angkutan dan Sarana
Transportasi Indonesia) or the Indonesian Transportation Information System, the
openly shared database for public transportation, maintained by the Department of
Transportation. As shown in the aforementioned figure, a steep decline in demands is
happening from April – June 2020 and slowly recouping in July but never seen a
comeback until the end of the data period (September 2020).
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Table 1.1 Passenger Volume in Class A Bus Terminal from Jan – Sept 2020
Source: SIASATI, 2020
Period Passenger Volume Changes Changes
from from
Previous Baseline
January 6,479,218 - -
February 5,250,509 -19% -19%
March 4,346,164 -17% -33%
April 3,067,589 -29% -53%
May 135,362 -96% -98%
June 1,048,225 674% -84%
July 2,070,524 98% -68%
August 2,398,732 16% -63%
September 1,876,796 -22% -71%
Using January 2020 data as a baseline at around 6,4 million user volumes (peak season),
we’ve seen huge and unrecovered demand up until September 2020, with the biggest
drop beginning in March and April, which coincides with government Covid-19 crises
announcement and Ministry of Transport issuance of regulation No. 25/2020 on
transport restriction for travelling outside the city and holiday season of Idul Fitri
1441H. The data trend is improving slightly with the enactment of Ministry of Transport
regulation No. 41/2020 issued in June 2020 that finally allows public transport to
operate with tight criterion and health protocol as a standard.
Even with the enactment, and commitment from public transportation stakeholders to
uphold the new awareness of public health, demand for land-based public transportation
in Indonesia is still dwindling, partly because many businesses still operate by allowing
their employees to work from home, and, as the survey results and data analysis on
chapter 3 will unveil, the public trust on using public transportation is on the all-time
lowest. This, in turn, is causing problems for operators and public transportation
stakeholders, such are left tailed risk associated with financial problems, that can have
domino effects on the overall economy with risks of employee layoffs, looming
bankruptcy, and loan performances. This is the underlying objective for this research,
from the point of view of choice architect adopting behavioural science and nudges to
try to pinpoint where we might do better in terms of shaping customers confidence level
and trust to acceptable level that supports a feasible business climate for all stakeholders
involved in providing public land-based transportation in Indonesia.
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1.4 Research Objective
The main objective of this research is to aid policymakers, especially the stakeholders
of road transport to develop policy interventions that are more suitable for people based
on behavioural science rule of thumb, with a primary objective towards the building
back of public confidence and a responsible attitude towards health and safety protocol.
In details, the objectives of this research are:
• To study and observe people’s behaviour and tendencies toward the use of land
public transport post-COVID-19, including busses, trains, MRT, LRT and Taxis
(online and offline);
• To analyze policies impacting the behaviour of groups of people in public
transport and their confidence in using the public transport services;
• To give policy recommendation based on behavioural nudges approach.
1.5 Research Questions

Based on the research objectives above, several questions emerge to guide the research
initiatives in delivering the objectives, they are:
1. How important are behavioural nudge approach in designing choice architecture that
effective for people?
2. How far are behavioural nudges being implemented through protocols in land-based
public transportation?
3. How do land-based public transportation fare against one another in terms of how
nudges work in each transportation type (Micro Bus, Mini Bus, Trans Jakarta Buses,
and MRT, KRL or LRT)?
1.6 Research Scope & Limitation

To maintain focus on Behavioural Nudge principle without delving far into evidence-
based policymaking and many other behavioural studies (psychological), the scope of
this research has been narrowed down to focus on policymaking strategy using
Behavioural Nudge principles for Public Transport Stakeholder in JABODETABEK
greater area and more focused on Bus Transportation and Jak Lingko initiatives as
opposed to all road-based transport. Furthermore, data gathering and verification
process was done between July to September 2020 through series of Focus Group
Discussions, Webinar, Interviews, Surveys in cooperation with Ministry of Transport
and Subject Matter Expert from public transport operators and also by personal
observations in many transit points, vehicles and stations.
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CHAPTER 2
BUSINESS ISSUE EXPLORATION
2.1 Literature Review
2.1.1. Behavioural Economic Study

Behavioural Economics is the subset study of psychology as it relates to the economic
decision-making processes of individuals and institutions. In an ideal world, it is
assumed that people would always make optimal decisions that provide them with the
greatest benefit and satisfaction. In economics, the rational choice theory states that
when humans are presented with various options under the conditions of scarcity, they
would choose the option that maximizes their satisfaction. This theory assumes that
people, given their preferences and constraints, are capable of making rational decisions
by effectively weighing the costs and benefits of each option available to them at any
given time and that everyone is a rational person with self-control and is unmoved by
emotions and external factors and, hence, knows what is best for himself. Behavioural
economics, in contrast, tries to explain that humans are not rational as it is believed in
the aforementioned explanation and are incapable of making good decisions and thus,
research and understanding of human behaviour is crucial.
Behavioural economics draws on psychology and economics to explore why people

sometimes make irrational decisions, and why and how their behaviour does not follow
the predictions of economic models. Decisions such as how much to pay for a cup of
coffee, whether to go to graduate school, whether to pursue a healthy lifestyle, how
much to contribute towards retirement, etc. are the sorts of decisions that most people
make at some point in their lives. Behavioural economics seeks to explain why an
individual decided to go for choice A, instead of choice B.
Figure 2.1 Typical Human Thinking Fallacies.

Image Source: StreetFins.com
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Because humans are emotional and easily distracted beings, they make decisions that
are not in their self-interest. For example, take Ms Dewi, according to the rational choice
theory, if Ms Dewi wants to cut back on her daily coffee consumption and is equipped
with information about the side effect of caffeine, she will probably be thinking to go
for healthy juice as a beverage instead. But behavioural economics states that even if
Ms Dewi wants to be healthier and treat her stomach right by slowing down on her
coffee consumption and opt for drinking healthy juice going forward, her end behaviour
will be subject to cognitive bias, emotions, and social influences. If a commercial on
TV suddenly advertises a brand of fancy coffee at an attractive price and quotes that
happiness starts with coffee, after all, the mouth-watering caramel macchiato, the
promotional price, and seemingly valid arguments may lead Ms Dewi to fall into the
sweet temptation and fall off of the healthy habit bandwagon, showing her lack of self-
control.
2.1.2. How We Think, the 2 System

In recent years, a new paradigm of economics has emerged which challenges the
traditional economic theories that have prevailed for over half a century. In his study
and book, Misbehaving, Richard Thaler presents a real-life story of how a few insights
from psychology and behaviour found their way into the now-recognized field of
behavioural economics (Thaler, 2015). Not simply an exposé of the trials and travails
of an upstart field, the study provides plenty of material in the best layperson terms
possible about why behaviour matters. Thaler compares what a “Human” does when
faced with real-world choices with what an “Econ” does with choices based on
theoretical principles. The former school of thought presents anomalies that have been
neither sufficiently explained nor disproved by the leading luminaries of the latter
school. In this narrative, readers soon discover the limits of specialized and
mathematically based solutions that have reigned for so long in our academic, financial,
and economic institutions.
Economic ideas are valuable because they can offer advice on improving people’s well-
being. Economic theories explain what is supposed to as well as what is happening and
what should happen for the benefit of society (the prescriptive, or practical use of the
theory). Traditionalists gained great status, including Nobel Prizes, developing
normative “rational actor” theories whilst making important contributions to
prescriptive policies; along the way, however, they overlooked key descriptive data by
32
not basing theories on Human decisions. These “traditionalists” dismissed these
anomalies as either one-off errors, special cases covered by existing theories, or quirks
that at least didn’t disprove their theories. Thaler sardonically terms such as data
“Supposedly Irrelevant Factors,” or SIFs. He emphasizes that economic policies fail
because the underlying assumptions about economic agents avoid or ignore the SIF
behaviours and decisions that matter most (Thaler, 2015).
The workings of the human brain are more than a bit complicated, Gilovich & Belsky,
a researcher on the behavioural pattern of human brains and how it relates to decision
making, have shown that even the smartest people make big money problem (Gilovich
& Belsky, 2000). To grasp this problem, we need to approach this by understanding the
difference of two kinds of thinking that has been researched and developed by
psychologists in the past decades; Automatic & Reflective system (Thaler, 2008). The
Automatic system is rapid and instinctive and is associated with the oldest parts of the
brain (Lieberman et al., 2000). Example of Automatic system is when we duck to avoid
the incoming ball, or when we smile when we see a cute puppy. The Reflective system,
however, is more deliberate and self-conscious. We use Reflective system when we are
to calculate arithmetic, or when contemplating the choice between enrolling oneself on
SBM ITB MBA Program or rather investing the tuition money in a business. While
those are pretty analytical and meaningful as a choice can be, in a small form we can
observe these biases, such as when booking a fancy all you can eat dinner with a
girlfriend, author tend to avoid eating prior simply because he wants to eat as much as
he can as to “get the money’s worth of the dinner” whereas a matter of fact, it doesn’t
matter how much he ate, the dinner costs the same. When writing this final project, the
author is mostly using reflective systems, but sometimes random ideas pop into the
authors head when in the shower or taking a walk and when the author isn’t thinking
about the final project, and these ideas probably coming from the authors' Automatic
system.
Table 2.1 Two cognitive systems

Source: Nudge (2008)
Automatic System Reflective System
Uncontrolled Controlled
Effortless Effortful
Associative Deductive
Fast Slow
Unconscious Self-Aware
Skilled Rule-following
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“Econs”, the term that we will use profusely in this research, are associated with people
that are being able to harness their reflective system all the time, but “Humans”, the
terms that we will also use profusely, oftentimes go with the Automatic system for
important decisions, the nature of Humans that relies on both systems has resulted in a
systematic bias, this research in this field have begun decades ago by two famous
psychologists, Amos Tversky and Daniel Kahneman (1947), and it has changed the way
psychologist, economist, and hopefully now policymakers think about thinking. Their
original work identified three heuristics or rule of thumb in understanding how humans
think, they are anchoring, availability and representativeness bias.
Figure 2.2 Map of London showing rocket strikes during World War II
(Adapted from Gilovich [1991] and Nudge [2008])
The map above is showing locations of the missile strike from Germans V-1 and V-2
that are landed in Central London, many would think, including the author and probably
you, that these bombs appear to be clustered around the River Thames and Northwest
part of the map, back in 1944, people in London expressed great concern because that
pattern seemed to suggest that the Germans could aim their bombs with great precision
(technology that wasn’t yet invented at that time). But a later and much detailed
statistical analysis of the bombs dispersions has determined that the bomb strike
distribution was indeed random.
34
Figure 2.3 Map of London showing rocket strikes during World War II with vertical & horizontal grid
Even when we apply vertical and horizontal grid, the bomb strikes still doesn’t look
random, this is due to our construction of patterns that are formed after we look at the
evidence. Only until we apply the diagonal grid, we can no longer reject the statistical
hypotheses that these bombs are distributed randomly (see figure 2.4). Another example
is the streak shooting, in sports and gambling, most people think that a player is more
likely to succeed on his/her next shot if he/she has made the last shot successful, this is
known also as hot hand theory. Consider also the phenomenon of clustered COVID-19
cases in counties in DKI Jakarta province, these have led to many investigations and
impacting policymaking process, suppose that in a particular county, we find elevated
COVID-19 cases, we immediately insist that they could not possibly occur by chance,
people then get scared, and sometimes government intervenes on their behalf. While
this is good, we’ve seen patterns where people confuse random fluctuations with causal
patterns and acted exactly the opposite of getting scared, they roam the streets and ignore
health protocols simply by not understanding how severe the virus distribution have
been.
35
Figure 2.4 Map of London showing rocket strikes during World War II with diagonal grid
This is known as representativeness heuristics bias and is one of the aforementioned

rules of thumb in human thinking system. It is interesting to see how these biases affect
people’s decision in using public transportation, queuing, behave and go on about their
daily lives in a new habit adaptation during COVID-19 pandemic.
2.1.3. Behavioural Nudge & Choice Architect

Choice architecture is the design of different ways in which choices can be presented
to consumers and the impact of that presentation on consumer decision-making. For
example, each of the following:
1. Number of choices presented;
2. How attributes are described;
3. Presence of a "default choice”.
These can influence consumer choice and as a result, these things are the variables that
come into play and should be harnessed by policymakers, or in this research, we shall
call them, the choice architect. Advocates of behavioural economics throughout the
world have supported this form of deliberate design of choice architecture to softly
push people toward socially desirable behaviours, these are what we call Nudges, like
queueing for bus, socially distancing themselves (what we are trying to formulate in this
research), saving for retirement, choosing healthier foods, to registering as an organ
donor and the understanding, also the field of behavioural economics are getting bigger
and more popular than ever in the past few years.
36
Figure 2.5 Designing choice architecture for people by putting healthier food options closer and easier
to obtain. Illustration from Homer Simpsons.
These interventions are often justified in which a well-designed choice architecture can
compensate for irrational decision-making biases to improve people’s welfare. These
techniques have consequently become popular among policymakers, leading to the
formation of the UK's Behavioural Insights Team and the Obama’s White House
"Nudge Unit" for example. While many behavioural scientists have stressed that there
is no neutral choice-architecture and that consumers maintain autonomy and freedom of
choice despite manipulations of choice architecture (Thaler, 2008), critics of the
concept of nudge often argue that choice architectures designed to overcome irrational
decision biases may impose costs on rationality, for example by limiting choice or
undermining respect for individual human agency and moral autonomy. These are some
of the things that any policymaker should think about to transform into a choice
architect, understanding how people think within the framework of behavioural science.
2.2 Harnessing Biases as Implementation Strategy
By merging behavioural science with this research’s primary data (Public

Transportation Resiliency in Indonesia), we get a glimpse of the passenger
characteristics in Indonesia, and that they share a common behavioural trait that any
person would inhibit; with biases and blunders. This is prevalence throughout the
discussions and surveys along with this research, and the further study of nudging with
combined insights of experts in their respective fields will reveal that there can still be
huge areas to explore in terms of exploiting and harnessing people’s behavioural, the
sky is the limit.
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2.2.1. Anchoring Effect
A preference for fairness can push people away from completely rational choices based
on self-interest. Another prominent cognitive bias is the anchoring effect, sometimes
referred to as the “framing effect”. With anchoring effects in play, people’s decision-
making is influenced heavily by the first or the most familiar piece of information
offered. For example, when people saw a T-Shirt priced at Rp. 1,000,000, - and then see
a second one that costs Rp. 100,000, -, they will prone to see that the second shirt is
cheap. The anchoring effect is embedded deep inside people’s decision-making process
that it can influence how people think their life is going and, in this research, anchors
that can be deliberately set can be used as nudges. Based on research by the behavioural
scientist, it is found that when charities ask people for donation, they typically offer
people a range of options such as $100, $250, and so on or “other”. If the charity’s fund-
raiser is a good choice architect, these values aren’t supposed to be set at random,
because the options influence the number of money people to decide to donate. People
will give more do charity donations if the options to donate are set high than if the
options are set low. In essence, the more you ask for, the more you tend to get.
This is vividly demonstrated in research by several behavioural economists, that the way
we ask questions affects the answers we are given, the context of the question itself also
has a big influence on the answer. Take, for example, research by Behavioural
Economist, Dan Ariely, an advert that was published to promote the sale of The
Economist magazine. One advert was shown to a sample of respondents who were
presented with three options – using 2 different types of visuals where advertisement
visual type I contains 3 choices for subscribing to the Economist; web content for $59,
printed edition for $125 and printed and web for the same price as the latter at $125, this
advertisement visual returns the subscription rate for combined web and printed (option
3) as much as 84%, and only 16% for web subscription only (option 1), and with 0% on
printed editions only (option 2).
Interesting things happened when these visuals are changed into advertisement visual
type II; 2 options of subscribing a web subscription (option 1) and combined
subscription of online and printed edition (option 2). Using these visual, the rate for a
combined subscription of printed edition and web dropped to 32%, with an increase on
web-only subscriptions to 68%. This suggests that by changing the choices provided,
we can alter the decision process by making the combination options more superior. In
38
this scenario, there was no difference in price between the printed subscription alone
and the online publication together with the print edition. Not surprisingly, people were
very much in favour of the offer which included the online publication together with the
hardcopy and no one could see the value of the print subscription alone.
Figure 2.6 The Economist Subscription with 3 Options Available

(Source: B2B International on Behavioural Economy / Paul Hague)
It is vividly clear that the context of the question very much affects the answer. Showing
three options where one was a subpar deal, nudged people to the desired answer; but
removing one of the options changed people’s behaviour.
Figure 2.7 The Economist Subscription with 2 Options Available

39
This demonstration indicates that context, in the way choice architect and public
policymakers convey their messages has serious implications on the success of the
intervention.
2.2.2. Loss Aversion

Kahneman & Tversky expressed loss aversion as one of the primary traits of human by
saying that “losses loom larger than gains” (Kahneman & Tversky, 1979). It is agreed
that humans tend to experience the pain of losing inherently more powerful as opposed
to the pleasure of winning. Loss aversion has been used as ground rules for endowment
effect, that is the bias responsible for us overvaluing something that we own regardless
of its market value (Kahneman, 1991), and sunk cost fallacy, that is when we order too
much food and decided to over-eat because we think we need to get our money’s worth
(Arkes & Blumer, 1985). Loss aversion might have also played a role in the status quo
bias, where people tend to stay the same by doing nothing rather than change and
transition into something that might offer better value. Status quo bias retains its
explanation in the next subchapter below.
The principle of loss aversion is what makes penalties are sometimes more effective
than reward in motivating people and should be applied in behaviour change strategy
including nudge. This is the reason why most of us won’t bother changing the ringtones
off our smartphones. More dramatic example, in the subject of organ donations. If we
outright ask people what they think of donating their organs, a high proportion might
agree in principle that they would do so. However, if we observe the behaviour of people
who do sign up for donor cards, we get a completely different idea. This is evident in
figure 2.8 below, which exhibit the differences in the agreement to donate organs from
various authorities responsible for issuing driving licenses in several countries. In
Europe, this is an occasion when people are usually confronted with an invitation to
become a donor. We see a huge contrast between countries that we would think have
similar views on organ donation, just by making a tiny difference in the way we ask for
people’s approval and convey our messages.
Similarly, loss-averse happens anywhere and impacting decision making processes of

people from love, career, business, happiness and more, oftentimes it clouded the
judgment but choice architect might better off by harnessing this trait to turn the
outcome into a positive campaign.
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Figure 2.8 Proportions of People Agreeing to Donate Their Organs by Country
The explanation for these differences is the way the question was asked. By asking
whether people would like to opt-out of the default settings of organ donation, the
authorities get a far much better result by utilizing a loss averse. The opt-out question
elicits virtually 100% positive response whereas the opt-in question elicits a very small
positive response. The way the question is asked and the context of the question
materially affects the answers we receive.
Figure 2.9 Opt-In vs Opt-Out Default Plays a Huge Role in Nudging People’s Decision
2.2.3. Status Quo Bias

Loss aversion operates as a kind of cognitive nudge, making us not to want to make
changes, even when changes are very much in our interests. Loss aversion is not the
only reason for the inertia. People generally tend to stick with their current situations or
41
possessions (Samuels & Zechhauser, 1988). A month free magazine subscription with
an opt-out option at the end of the period is an indication of status quo bias being
exploited, where it has been demonstrated that these subscriptions seemed like a
bargain, even if the magazines rarely get read, but what people don’t realize is that
unless they took some action to cancel their subscriptions, they would continue to
receive the magazine, paying for them at normal rate. The combination of loss-averse
traits with mindless choosing (derived from the automatic system) implies that if an
option is designated as the “default”, it will attract a large market share. Default options
thus act as powerful nudges (Thaler, 2008) and such, setting the best possible defaults
for public transportation passenger will be a theme the author explores in this research.
2.2.4. Framing Strategy

Framing often involves words selection and it matters in many domains, in banking for
example, instead of introducing a 1% surcharge on the use of credit cards in the US,
which is then outlawed by the Congress anyway, the credit card companies then
introduce the price of the credit card as the normal price as opposed to the discounted
price of cash. This framing strategy is based on the idea that choice depends, in part, on
how problems are stated. In Indonesia, we may be able to implement an opted-in by
defaults for Credit Card insurances included in the yearly fee as opposed to have
telemarketers try to sell the services to Credit Card owners after.
Together with the understanding of loss averse, public policymakers harness this
framing strategy because it matters a great deal to them, example when one wants to
campaign on the use of public transportation to promote a green economy, consider the
following 2 types of campaign: (1) If you opt for Jak Lingko membership and shift to
complete public transportation as your main modes of transportation, you will save Rp.
10,000,000, - a year on maintenance and gas; (2) If you do not shift completely to public
transportation by opting for Jak Lingko membership, you will lose Rp. 10,000,000, - a
year on maintenance and gas. As it turns out, the information on the campaign (2),
framed in terms of losses, is far more effective than information campaign (1), if the
government wants to encourage the use of public transportation, framing losses is a
stronger nudge (Thaler, 2008). This strategy works because people tend to be passive
decision-makers. The reflective system does not do the work that would be required to
check and see whether reframing the questions would produce different results.
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2.3 Conceptual Framework
Developing protocols to arouse and nudge people into behaving good, being confident
in using public transport and further become the agent that spreads the positivity and
attitude towards other users of public transport can be difficult if not utilizing the
inherent bias in people’s behaviour. Knowing very well that in real life, humans don’t
ever behave like Econs, we can use this knowledge to develop policies and protocols
that are alluring, interesting, and able to put ideas into the minds of the people and
making them make the right decisions, all by themselves and without interference or
fear.
2.3.1. Nudge & 4Ps Intervention Framework for Behavioural Change

Below is a conceptual framework in nudging people using policy intervention that
author reflected upon the nature of public transportation conditions in Indonesia, its
typical demographics, how author conducts its research and types of commonly
available intervention types.
Population Characteristics
LRT Users vs Busway Users vs
MRT Users vs Taxi Users
Based on Demographic &

Socioeconomics
Outcome Type
Nudge Intervention Type
Confidence &
Attention Behavior
Descriptive Labelling, Apealing
Intervention
Signage, Visible Logos, Human
Effectiveness Adherence to health
Covid, Etc
(Effect Size) protocols,
Interest
Cleanliness, Safety, Health Protocols consumption / usage
Action of public transport,
Convenience, Ease of Access, Etc confidence
Research Methodologies
FGD, Surveys, Webinar, Sharing Session
(Point of View, Stakeholder Priorities)
Figure 2.10 Conceptual Framework in Policy Intervention
Figure 2.10 shows the conceptual framework based on researcher/author understanding

of how policy intervention, especially those that are driven by nudges works. There is 3
main support to the main pivot that is the policy intervention effectiveness, those are
how the choice architecture itself presents itself (in the form of attention intervention,
interest intervention and action intervention), taking into play also the passenger
characteristics in road-based public transportation in Indonesia, for example, the
different behaviour traits between passengers of MRT, LRT and Busses and how
43
effective nudge based intervention can be effectively be applied. Lastly is the way this
research is conducted, as the primary source of data, the author tries to understand the
way passengers think and behave before and during this pandemic era. Together they
make input to the pivot that is the effectiveness of an intervention.
To sharpen the edge on the implementation strategy, the author is adopting the 4Ps
Framework for Behaviour Change as a broad strategy for nudging behaviour toward
desirable outcomes in specific situations. This framework is introduced by several
behavioural economists from the Yale University and is based on research on diet study
and behaviour change project to try to influence the diet choice of people to shift to a
healthier alternative. The 4Ps—Possibilities, Process, Persuasion, and Person arguably
can facilitate new ideas for both researchers and policymakers (Z. Chance, M. Gorlin,
R. Dhar, 2014). The nudge that will be used in this research will be managed in line and
fall into 4 different categories; what choices are offered? How choices are made? How
it is communicated through? And how intentions are reinforced?
Figure 2.11 Yale’s 4P Framework for Behavioural Change

Source: Journal of Customer Needs & Solution, Springer (2014)
Refer to the figure 2.11 above, the first out of the 4Ps are Possibilities, it indicates,
according to the Yale University Behaviour Economist Researchers, to the available
options, or the choice set that is faced by the subject of the intervention, examples are
44
what is provided (items and attributes), how much is provided (quantity), and the
arrangement of the choices itself (variety and bundles).
The second is Process, essentially how decisions are made, process interventions will
influence behaviour by modifying the positions of options within customers physical or
psychological space (Z. Chance, M. Gorlin, R. Dhar, 2014), due to its nature, as
explained in the previous point within this chapter, due to it involves changes to the
context to which a person makes a choice, behavioural economist call process
interventions “Choice Architecture” (Thaler, Sunstein, 2008)
The third is Persuasion, this is in line with the nudge framework proposed in this
research, as one of the supporting aspects of the nudge effectiveness pivot on figure
2.10. This relies heavily on persuasive messages, conveying information, and
sometimes overwhelmed the subject with it, as will be explained in the next chapter
regarding the Anchoring effect on people’s mind. This intervention will deal precisely
with how the message is framed, presented and by what means it will be delivered, it
includes visuals and descriptors.
Figure 2.12 Yale’s 4P Framework for Behavioural Change

Source: Behavioural Insights Association Publication – Nudging Consumer to Make Desirable
Behaviour
45
Lastly, its Person, interventions in Person will transform attention from deciding in a
particular context to helping people make better choices onwards. This is in line with
the philosophy of Nudge itself, that are paternalistic (Thaler, Sunstein, 2008). Instilling
a good understanding of good behaviour in a public transit and or empowering people
to resist taking off their masks altogether can help alter people’s general behaviour, but
to make these changes and decision sticks, a support system in undoubtedly required to
maintain these behaviours. This so-called support system can be in a form of something
written, a tracker, a card, a reward points, things that are fun and enable people to
unanimously opt for using public transportation.
In a brief, a good choice architect must harness this 4P framework for behaviour change
by ensuring that the process is made easy, the Possibility is made available, the
Persuasion must be approached with attractiveness and the Person be motivated by
removing barriers to the desired choice, design the right choice set, work with existing
beliefs and tap into active goals.
2.4 Research Methodology
To answer the research question defined in the previous chapter, this research will be
using research methodology best used and optimized in learning about people’s
behaviour, these steps are:
Figure 2.13 Final Projects’ Research Methodology for Road Based Public Transport
46
2.5 Data Gathering
Primary means for data gathering for this research is to employ a qualitative approach
such as:
1. Surveys
Using mass surveys and questionnaire targeted at public transport users to try to
understand what is happening and what sits on top of the mind of people that are
using and/or relying on public transport.
2. Observations
Employing visual observations directly or indirectly to understand people’s
behaviour and how public space design and protocols shape behaviour and decision-
making processes. The author is harnessing his experience as a commuter to help
make some assumption about people’s behaviour at travel.
3. Focus Group Discussions (FGD)
A panel of experts and professional that provides insights into unanswered questions
regarding what happened on the ground during COVID-19 pandemic as well as
suggestions on what to do next.
4. Secondary Research
Employing research and observations into audio and video recording, texts,
behavioural nudge research on other subjects, images, etc.
The aforementioned data gathering means are being provided as part of research study
collaboration between SBM ITB and Ministry of Transportation on how COVID-19
impacting road-based transportation business in Indonesia and how to navigate this
uncertain era amid the ongoing crisis.
Specific for Focus Group Discussions (FGD), several owners/operators that are
involved in this part of the research are:
2.5.1. BlueBird Group

PT Blue Bird Tbk is a transportation company established in 1972. With focus on
transport and tourism, BlueBird most prominent product is its fleet of taxi heralded as
the best and safest taxis in Indonesia. BlueBird operates in several cities in Indonesia
namely Jakarta, Tangerang, Bekasi, Bandung, Surabaya, Cilegon, Semarang, Manado,
Makassar, Denpasar, Mataram, Medan, Pekanbaru, Batam, Palembang and Padang.
47
2.5.2. Gojek
PT Aplikasi Karya Anak Bangsa, doing business as Gojek (stylized in all lower
case as gojek, formerly styled as GO-JEK), is an Indonesian on-demand multi-service
platform and digital payment technology group based in Jakarta. Gojek was first
established in Indonesia in 2009 as a call centre to connect consumers to courier delivery
and two-wheeled ride-hailing services. Gojek launched its application in 2015 with only
four services: GoRide, GoSend, GoShop, and GoFood. Valued at US$10 billion today,
Gojek has transformed into a Super App, providing more than 20 services.
Gojek operates in Indonesia, Vietnam, Singapore, Thailand, and the Philippines

(through the acquisition of Coins.ph). Gojek is the first Indonesian unicorn company, as
well as the country's first "decacorn" company. It is the only company in Southeast Asia
that is included in Fortune's 50 Companies That Changed the World in 2017 and 2019,
ranked at 17 and 11, respectively. As of June 2020, it has about 170 million users
throughout Southeast Asia.
Gojek has won financial backing from investors including Astra International,
blibli.com, Google, Facebook, PayPal, Mitsubishi, Sequoia, Northstar, Singapore's
sovereign wealth fund Temasek Holdings, KKR, Warburg Pincus, Visa, Parallon, SCB,
Chinese internet giant Tencent, JD.com, meituan.com, Capital Group, among others.
The presence of Gojek has forever shaped the landscape of public transport in Indonesia,
although it is not yet integrated state public transport, Gojek brings perspective on how
policymaking should be conducted post-COVID-19 pandemic.
2.5.3. Grab Indonesia

Grab Holdings Inc., commonly known as Grab, is a Singaporean multinational ride-
hailing company headquartered in Queenstown, Singapore. In addition to
transportation, the company offers food delivery and digital payments services via
a mobile app. It now operates in the Southeast Asian countries
of Singapore, Malaysia, Cambodia, Indonesia, Myanmar, Philippines, Thailand and Vi
etnam, and the East Asian country of Japan. It is Southeast Asia's first "decacorn" (a
startup with a valuation of over US$10 billion).
48
2.5.4. GEGE Transport
PT Gege Transport was established in 2004 in the city of Jogjakarta, today, the bus
company operates tourism routes within the island of Java, Bali, Lombok and parts of
Sumatera. GEGE Transport is famous for its lines of buses serving the customers with
an in-cabin entertainment system and even a Wi-Fi system even on their economy class.
One of the unique things about GEGE buses is that the company allows for a chartered
route, customised by customers when travelling in groups, something that is so apparent
but not many able to provide.
2.5.5. MGI Bus

PT Maya Gapura Intan, a subsidiary of Mayasari Bakti Group, legacy bus company
operates in Indonesia since 1964 and earn their footing in the island of Java. MGI is
focusing its effort on the emerging urban market such as the cities of Bandung,
Sukabumi, Bogor, Depok, Tangerang and the rest of west java province. Focused on
business class and luxury line, MGI is among the top of mind among customers when
it comes to comfort and cleanliness.
2.5.6. SAN Bus

PT San Putera Sejahtera was established in 1978 with a focus on intercity and
interprovincial transport. Previously known as Siliwangi Antar Nusa, the company has
rebranded itself in 2003 with a new motto of “Transport with Care” and emphasis on
revolutionary change management to deliver better customer experience, comfort,
safety and responsibility. Today, SAN buses travel as far as Pekanbaru and have a
foothold in Indonesia in Central Java.
2.6 Data Gathering Details
The survey round began as early as July 2020 where the joint researcher team has
conducted initial survey planning, the survey is employing Survey Monkey platform
and targeting mixed segment customer of land-based transportation users. Total data
collected as of September 2020 is at 542 valid sample. Aside from Surveys, the FGD
events were also held in parallel, a total of two separate sessions were conducted with a
focus on knowledge sharing of public transport stakeholder and private business owners
on how they navigate through Covid-19 pandemic and how they implement behavioural
science to nudge people into developing health consciousness and safety protocol habit.
49
Table 2.2 FGD 1 & FGD 2 Session Details
FGD
Participant Role / Affinity
Event
Ministry of Transport Research & Development Division Policymaker
Ministry of Transport Planning Division Policymaker
FGD 1 Ministry of Transport Road Transport Division Policymaker
Ministry of Transport Road Infrastructure Division Policymaker
ITB Researcher Team (Cluster 3) Researchers
Ministry of Transport Research & Development Division Policymaker
Jakarta Capital Special Region (DKI) Transportation Division Policymaker
DPP Organda Operator
DPD Organda DKI Jakarta Operator
PT DAMRI Operator
PT Transportasi Jakarta (TransJakarta BRT) Owner & Operator
PT SAN Putera Sejahtera Operator
FGD 2
PT Maya Gapura Intan Operator
PT Gege Transport Operator
PT Blue Bird Tbk. Operator
PT Aplikasi Karya Anak Bangsa (Gojek) Operator
PT Grab Teknologi Indonesia (Grab) Operator
Ministry of Transportation – Land Transport Directorate Policymaker
Masyarakat Transportasi Indonesia (MTI) Observer
The first FGD event was designed to capture the problem and focusing on the issues
from the Ministry of Transportation point of view as a public policymaker and the
primary stakeholder in Indonesian land-based transportation business. The follow-up
event was focused on exploring key insights from the operators, especially on the
implementation of behavioural nudges on different areas and sets of business models.
All FGD events were held through online zoom conference due to the COVID-19
pandemic limiting physical interaction.
2.7 Data Gathering & Research Team
During this final project research, the author is joining the team of scientist dubbed the
Cluster 3 team from School of Business and Management, Institut Teknologi Bandung
in research with the Ministry of Transportation of the Republic of Indonesia. The
research project is aimed at producing policy recommendation for road-based public
transportation to withstand the COVID-19 pandemic and the many uncertainties it
brought with it. The research is involving several fellow researchers from SBM ITB,
covering several different issues where yours truly as an assistant researcher for Dr
Agung Wicaksono, with author’s agenda of gathering necessary data for his research;
focusing on behavioural nudge aspects to try to draw a formulation on how choice
architecture plays a role in policymaking effectiveness and how nudge can be the key
to solve the ensuing Covid-19 pandemic. The complete list of Cluster 3 research team
is as follows in Table 2.3.
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Table 2.3 ITB COVID-19 Pandemic on Road-Based Public Transport Research Team (June-Sept 2020)
Researcher Role
Yunieta Anny Nainggolan, Ph.D Team Leader; Methodology, Financial, Survey Data
Dr Agung Wicaksono Transportation Policy
Dr Mohamad Toha Industry Analysis & Business Strategy
Dr Yos Sunitiyoso Scenario Planning, Agent-Based Modelling, Transport
Yudo Anggoro, PhD Economic Analysis, Public Policy & Business Innovation
Meditya Wasesa, PhD Transportation, Logistics & Supply Chain
Kurnia Fajar Afgani, MBA Risk Management
Annisa Rizkia Syaputri, MSM Assistant Researcher
Fahkri Ihsan Ramadhan, MSM Assistant Researcher
Radia Purbayati, MBA Assistant Researcher
Alma Kenanga Attazahri, S.T. Assistant Researcher
Dita Novizayanti, S.Si. Assistant Researcher
Felik Makuprathowo, S.T. Assistant Researcher
M. Agus Afrianto, S.E. Assistant Researcher
Rama Permana, S.T. Assistant Researcher
Timotius Alfin, S.T. Assistant Researcher
51
52
CHAPTER 3
DATA ANALYSIS & BUSINESS SOLUTION
3.1 Behavioural Insights on Road-Based Public Transportation in Indonesia
This research is based on qualitative descriptive which relies heavily on the insights
generated and provided by key stakeholders, end-users and subject matter expert on how
they perceive the COVID-19 crisis and how they would enact protocol implementation
strategy in their respective choice architecture approach. This qualitative approach
means that the research is concluded by understanding the situation according to key
users’ perception, knowledge, experience, information, suggestions, documented events
together with in-depth discussions through Focus Group Discussions (FGD), surveys
and panel of experts’ webinars sharing their research summaries.
To begin, the Indonesian government, both central and local government agrees to
engage in a campaign to grow the habits of doing all those 3 recommendations in a
campaign branded as 3M (Menjaga Jarak, Mencuci Tangan, Memakai Masker /
Maintaining Distance, Washing Hands, and Wearing Masks), these 3Ms are some of the
basic goals for our nudge thought formulation in this research, to add to more
sophisticated goals of bringing back confidence in passenger and ensuring public
transportations are at the top of mind of every commuter in Indonesia, and Jabodetabek
especially as the nation’s role model.
Generally speaking, in this study on how passenger behaviour is influenced by

externalities, we begin with an implicit assumption that, as a good citizen role model,
one must adhere to any sets of policies and norms set by policymakers. It might at first
seem obvious at the TransJakarta transit station that if you are waiting for the bus to
come, you must have preferred it to come in easy, and you be guaranteed safety and that
everyone is adhering to said health protocol. In reality, we may behave exactly the
opposite, such as skipping queues, not minding our distance, not wearing a mask and
not washing our hands, where we as part of the cohesive structure within the transit
stations or inside busses, we are responsible to ensure that easiness and safety. While
social construct did indeed influence how people behave and forming habits that can
either make members of the society grew consciousness and follow the rule or not at all,
we must also remember that the design for public space, that directly connects to
53
availability of choices also has a profound impact informing decision trees for
passengers.
Take for example, in a well-designed and spacious transit station, as opposed to

cramped, small and poorly ventilated ones, we can quickly imagine that the passengers
on both stations might exhibit different behavioural outcomes, as a choice architect, our
job will be a lot easier if we are to employ sets of nudges in the first station, people
might have more time paying attention to the signage, visual cues, distancing themselves
and so on, as opposed to the latter station, where just to get a decent queue is
challenging. It’s a clear indication that externalities affect the way we behave, and some
of these externalities can be modified, designed, and if done right, by employing nudge
and behavioural economics, design of choice availability, visual cues, memorabilia,
ownership and many other can prove to be effective in creating a safe space, where
people are constantly and independently behaving to the best of greater good instead of
oneself.
3.1.1. FGD Data Insights

FGD data analysis is considered to be the primary data in this research and it includes:
1. Issues in transport due to COVID-19 pandemic;
2. Point of Views, differing, from each stakeholder;
3. Nudging strategy employs by each stake-holders;
4. Visuals & Images to better understand the nudging by each stake-holder.
The FGDs are being hosted by the Center for Research & Development of Ministry of
Transportation of the Republic of Indonesia. The event that took place also being used
by each speaker and stakeholder to communicate the ensuing problems, issues that may
or may not need government/policymaker’s intervention, this is why on some of the
FGD summary, we can find key issues and conclusions that are specific to the needs
and wants of each stakeholder. To keep the view on this research as objective as the
author should, we will only be focusing on summaries that have direct connections to
Nudge, policy intervention, health protocols and passenger behaviour. Below is the
policy recommendation based on both FGDs conducted on July 14th 2020 (FGD I) and
August 4th 2020 (FGD II) in table format:
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Table 3.1 Summary of FGD 1 conducted on July 14th 2020 through zoom internet video conference
Summary of FGD 1 (July 14th 2020)
Participants Position
Umiyatun Hayati Triastuti (MoT) Head of R&D
Cucu Mulyana (MoT) Head of Center for Road & Railroad R&D
I Ketut Mudana (MoT) R&D Division
Djarot Tri W. (MoT) Planning Bureau
Handa (MoT) Director of Road Traffic
I Ketut Suhartana (MoT) Director of Road Transportation
Fitriyani (MoT) Director of Road Transportation Infrastructure
Purwantara (MoT) Transport Authority of City of Jakarta
Recommendation / Summary of FGD Related to Policy Intervention & Nudge
Passenger Behaviour Model • Shifts in priorities to safety as the top priority;
• Shifts in preference in commuting, bicycle and walking
trends are upwards;
• The confidence level of customers is at an all-time low, it
is imperative to bring back the trust, and perform service
adjustment to adapt to these changes.
Business Model • Collaboration between Operators as opposed to rivalry;
• Integration with tourism and shipment business is needed
more than ever;
Financial • Cost structure breakdown; identifying additional
investment on operational and capital expenses to provide
health protocols, safety protocols, and nudge initiatives (in
the form of proper government intervention);
• Cost engineering by considering ability to pay and
willingness to pay analysis;
• The synergy between fiscal and non-fiscal policies.
Operational Infrastructure • Determining new minimum service level that has taken
into account new health, safety policies;
• Integrated touchless payment system;
• Re-adjustment of modes, armadas and transit points by:
o Standardizing health protocols from fist to last-
mile ride;
o Providing good air circulation throughout the
armadas and transit points.
External Policy • Adjustment of activity hours during AKB (New Habit
Adaptation) period with the rest of the industry;
• Arrangement of Travel Demand Management (TDM)
through odd-even policy and Electronic Road Pricing
(ERP) as well as to increase public transportation quality
and balancing the demand and respective capacity
The purpose of the first FGD is to synchronize understanding between researcher team
and the policymakers from the Ministry of Transportation (MoT), several insights
gained from this activity such as the drop in cash payment usage, drop in demand to a
severe level, highlight key incentives to be offered to operators, and most importantly
understanding that there might be a shift in the customer's priority regarding their ideal
transportation factors. This also marks the first step in the overall nudge research, that
is to understand the nature of the policymakers, their experience and priorities, before
engaging with passengers to understand and augment their behaviour.
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Table 3.2 Summary of FGD 2 conducted on August 4th 2020 through zoom internet video conference
Summary of FGD 2 (August 4th 2020)
Participants Position
Umiyatun Hayati Triastuti (MoT) Head of R&D
Cucu Mulyana (MoT) Head of Center for Road & Railroad R&D
Polana B Pramesti (MoT) Head of Transport Authority (BPTJ)
Massdes Arouffy (DKI) Secretary of Transportation Agency of DKI Jakarta
Heribertus (MoT) Transportation Agency of Central Java
Aca Mulyana (MoT) Director of Transportation of Transport Authority
Budi Setiyadi (MoT) Director-General Road-Based Transportation
Fino VW (MoF) BKF Analyst of Ministry of Finance
Ateng Aryono (Organda) Secretary-General of DPP Organda
Sharfuhan Sinungan (Organda) Head of DPD Organda DKI Jakarta
Sandri Pasambuna (DAMRI) Business Development & Commercial Director
Welfizon Yuza (TransJakarta) Finance Director
Kurnia Lesani Adnan (SAN Putra Sejahtera) Managing Director
Daryono (MGI) Assistant to Director
Hantoro Hans (GEGE Trans) Managing Director
Michael Tene (Blue Bird Group) Corporate Planning
Tirza R. Munusamy (GRAB) Public Policy
Dhani Priatna Wiradinata (Go-Jek) Go-Car
Tulus Abadi (YLKI) Head of YLKI (Consumer Group & Protection)
Djoko Setijowarno (MTI) Observer & Analyst at MTI
Agus Taufik Mulyono (MTI) Observer & Analyst at MTI
Recommendation / Summary of FGD Related to Policy Intervention & Nudge
COVID-19 Peak & State • Predicted to keep rising with the highest case in
September;
• Not yet clear on when vaccines are going to come out.
Passenger Behaviour • Demands still on the low due to home-based activities;
• Trust and confidence level of passenger still at a low;
• Shifts in demands to less crowder mean of transportation
or even illegal modes as to avoid compliance to health
protocol (trains are deemed too strict, as well as
interprovincial busses);
• 3 types of passenger identified: Risk Avoider, Risk Taker
and Calculated Risk Taker with eyes on the Calculated
Risk Taker as a promising model of transportation business
comebacks.
Operator Strategy • Implementation of health protocols from armadas to point
of transits;
• Cashless Payment implementation;
• End to end COVID-19 health and safety protocol
enactment;
Transportation Regulations • Government to limit the capacity of transport armada to
70%;
• Implementation of 3M protocol (Masker / Mask, Menjaga
Jarak / Keeping Distance & Mencuci tangan / Washing
Hands) with strict control;
• Additional health test facility on operations budget;
• Moratorium on new transportation license for the next 1
year;
• Educating the public on health safety issues;
• Limiting traffic using ERP and increased parking fee.
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Some of the visible nudge strategy shared by experts from FDG 2 falls into the category
of Attention, Interest and Action Nudges, designed to gain attention to descriptive
labelling, signage, logos and some extent, stuffed Human COVID. TransJakarta for
example already employs partitioning space between seats by visible marking each
meant to be emptied, providing the passenger with a visual cue and allowing them the
right to influence others to not sat on the marked seat as well.
The capacity limitation on each fleet of busses is designed to have fewer people
congested inside a closed cabin of the bus, but this is also mean that the transit stations
are jam-packed as a result. To deal with this situation, a fairly simple nudge was
executed by TransJakarta and the city of Jakarta by adding available armadas and
increase the bus cycle time on each transit, therefore balancing the loss capacity by also
assuming the predicted demands.
Figure 3.1 TransJakarta implementation of behavioural nudge in ensuring social distancing
The projects webinar was held live and aired on YouTube on September 18th 2020 with
over 1,600 viewers at the time of its stream. As part of the much bigger webinar series
with the Ministry of Transport, the centre of R&D of the ministry hosted the event by
bringing panels of experts from operators, researchers, institutions and stakeholders.
Some of the key insights into harnessing behavioural nudge can be seen in figure 3.1 to
figure 3.3. These initiatives can be seen as very effective since it is designed to trickle
the way passenger think and behave, it is also designed to be for the greater good of the
people, and there is no forceful empowerment, the implementation from first to the last-
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mile also in line with the idea of curbing the spread of the virus, starting from the small
to the large transit scale.
Figure 3.2 TransJakartas implementation of behavioural nudge in ensuring health protocol

implementation
Figure 3.3 JakLinko implements nudge at a first mile to ensure robustness and synergy between modes
In August 2020, TransJakarta has opened all routes of mikrotrans, 18 non-BRT routes,
2 RoyalTrans routes and 6 Rusun routes. This is part of supporting local government
policy on odd-even whilst balancing capacity required to operate under 50% capacity to
support social distancing and avoid crowded choke point. Again, without worrying too
much about enforcing passengers to mind the distance, the nudge here is to provide extra
capacity by adding fleet numbers rather than seating capacity in a fixed physical
environment. By simply adding the number of busses operating and adding more
working fleet, the TransJakarta as owner and operator has managed successfully to
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provide transportation modes that, by default, free from congestion and delays,
subsequently nudging people into doing social distancing.
Table 3.3 Increase in Capacity of TransJakarta to balance the capacity cut and city odd-even policy
(Source: PT Transportasi Jakarta)
BRT July August August Passenger
(Non-Odd-Even) (Odd-Even) (July)
Corridor 1 76 78 95 37k
Corridor 2 40 48 50 15k
Corridor 3 63 63 79 18k
Corridor 4 55 58 69 10k
Corridor 5 56 56 70 15k
Corridor 6 58 61 73 16k
Corridor 7 35 36 44 16k
Corridor 8 66 68 83 17k
Corridor 9 98 97 123 28k
Corridor 10 54 66 68 13k
3.1.2. Survey Data Insights

The author and the entire research team initiate and mined survey data from August 10th
– September 2020 using Survey Monkey® online service, it was designed with several
sections to capture several key points namely:
1. Respondents’ profile;
2. Pandemic impact on life and livelihood;
3. Primary transportation modes and its frequency before Large Scale Social
Restriction (LSSR/PSBB), during PSBB and after PSBB to:
o Working Commute;
o Shopping Trip;
o Intercity Travel, and;
o Recreational;
4. Willingness to pay and its preferred payment method before, during and after the
pandemic.
With a focus on qualitative descriptive analysis, using valid survey result of 542
respondents out of 630 as of September 2020, the author summarizes a few points worth
noting regarding shifts in passenger behaviour, preferences and priorities. These are the
primary focus in regards to answering the research questions and objective, that is to
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implementing out effective policy intervention that can be suited to bringing back
confidence and trust of Public Transportation users.
Table 3.4 Survey Result on Shifts in Passenger Priorities

Desired Factors in Public Transport Before During After PSBB
PSBB PSBB
Implementation of Health Protocols Unimportant 1 1
Cleanliness 1 3 2
Comfort 2 2 3
Real Time Information 3 4 4
Access / Distance 4 Unimportant Unimportant
As demonstrated in Table 3.4 above, there are shifts in people’s priorities when it comes
to selecting their transportation modes to get to where they wanted to be. Before PSBB
(Pembatasan Sosial Berskala Besar / Large Scale Social Restrictions), the number 1
desired factor is cleanliness, comfort, real-time information and access respectively.
During PSBB and afterwards, it has shifted tremendously and introduced a new factor
altogether, implementation of health protocol is the most important followed by
cleanliness, comfort and real-time information.
This shifts in priorities are directly related to how policymakers should design their
policy intervention and choice architecture, physically at transit stations, and inside the
armadas itself, for example, policymakers should consider leveraging on the inherent
bias, in this case, the way passengers/customers perceive the COVID-19 dangers to be
much higher than it is might nudge people into respecting health protocols to save
themselves from contracting the virus or using loss averse traits by providing and
distributing free face masks, plastic gloves and/or masks as a default package on riding
public transport modes, as opposed to only receiving admission tickets or nothing. The
nature of loss-averse might help policymakers nudge people into using personal
protective equipment because it is simply already there and is part of the experience of
riding public transport as opposed to having to purchase or obtain them separately.
If we are to go back to the rule of thumb in human behaviour, already we can notice and
harness the 3 major heuristics that can come into play in boosting back confidence level
of passengers. Availability heuristics dictates that a particular set of an idea can be
brought to mind with ease as long as it is readily available, In the case of COVID-19
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pandemic, policymakers can benefit from this by dramatically telling compelling stories
of the pandemic, and highly publicized its risk. This heuristic is one of the reasons why
people are easily swayed by a single, vivid story than by a large body of statistical
evidence. Implementation of billboards and TV announcement of COVID-19 infection
rates might not be as effective as simply putting COVID-19 stuffed man at transit
stations, but combining them both, the statistics board along with vivid and dramatic
visual reminders to keep your distance might be considered a good nudge.
Figure 3.4 Human Covid-19 standing inside TransJakarta transit station

(Source: Liputan6.com)
Survey word cloud also shows that primary driving forces of a customer in using Public
Transportation modes is now on Health (Kesehatan) and Protocols (Protokol), this
narrows it even smaller in helping policymakers and choice architect to be more
confident in designing policy intervention that is focused in health and proactive
discipline and respect towards its protocols.
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Figure 3.5 Word Cloud generated from an online survey on behaviour during COVID-19 Pandemic
(Source: Cluster 3 Team ITB Research)
From the survey, we also figured that the preferred modes of transport during
LSSR/PSBB is being dominated by privately owned vehicle, such as private motorcycle
(47,2%), private car (41,9%), Bicycle (11,4%) with the rest of having some sort of
public transportation from taxis, ojeks, angkots, busses, commuter train, MRT, etc.
(accounts to and about 23,8%), some fractions (11,4%) prefer to not go outside their
homes at all. Of all aforementioned public modes of transportation, angkot (micro
busses) and busses have already enacted health protocols such as limiting capacity and
providing health and hygiene supporting facilities such as those imposed and being put
as regulation by the local government, despite those limitations and care to health
protocol, public transportation remains the least of their preferred means of getting
around. Something worth noting from survey result is also the fact that during
LSSR/PSBB, cash no longer the number one means of payment, digital payment and
cashless cards such as e-money and e-wallets have risen to become the number one
preferred methods of payment.
Figure 3.6 Behavioural Shift on Preferred Payment Method

(Source: Cluster 3 Team ITB Research)
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3.1.3. Webinar on Road-Based Transport Resiliency During Pandemic
The webinar was held live and aired on YouTube on September 18th 2020 with over
1,600 viewers at the time of its stream. As part of the much bigger webinar series with
the Ministry of Transport, the centre of R&D of the ministry hosted the event by
bringing panels of experts from operators, researchers, institutions and stakeholders.
Some of the key insights into harnessing behavioural nudge can be seen in the figures
below. For full recordings of the said webinar, refer to the references part of this research
document.
Table 3.5 Session List of Transportation Webinar (in order)
Webinar Scheduled Rundown (September 18th 2020)
Session Name Institution Speaker
Road-based transportation resiliency during the pandemic MoT Dr Umiyatun Hayati
Towards a more sustainable new normal for the transport
ADB Ir. Bambang Susantono
sector
Prof. Agus Taufik
Humanitarian Railway System Development MTI
Mulyono
Policy to Control and Survive the Pandemic MoT Drs. Budi Setiyadi
Impact of COVID-19 on Rail-Based Transport in Indonesia UGM Dr Arif Wismadi
Policy Effectiveness on Road-Based Transportation
SBM ITB Miming Miharja, PhD
Management to mitigate COVID-19 spread
Policy Review for Rail Based Transportation UGM Hengki Purwoto, M.A.
Road-based transportation resiliency during the pandemic SBM ITB Dr Agung Wicaksono
Impact of COVID-19 on Rail Transportation Feasibility PT KAI Maqin U Norhadi
Review & Discussion with 4 Panelist

5. Policy to Control and Survive the Pandemic MoT Hidayat Amir
6. DAMRI in new normal DAMRI Setia Milatioa Moemin
7. Controlling passenger behaviour during the pandemic MoT Mutharuddin
8. COVID-19 Impact on Rail-Based Transportation KAI Maqin U Norhadi
Q&A Session All Participant
The webinar provides a multitude of insights from different experts in their respective
fields, following the research limitation, some of the useful ideas on nudge and
behavioural pattern recognition will be used as primary data to design the policy
intervention and nudging ideas throughout the next subchapter. The main key take from
the event is that the economic and social effects of the pandemic in public transportation
domain extend beyond service performance and health risks to financial liabilities, and
sustainable mobility. There is, to some extent, a risk felt together by all stakeholder, that
if the public transportation business in Indonesia doesn’t catch up the new shifts and
trends in passenger behaviour and mindset, then the notion of disbelief upon using or
consuming public transport may last to the point where it is no longer viable to justify
running these services because the public is too scared of being in an unhealthy public
space, this too, if it lasts, will prove to be a difficult challenge to tackle, once the
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pandemic is over, since the public mindset is already sticking with the image of public
transportation isn’t a safe place and a place to avoid.
One of the most repeated issues at hand is the reviews on current rules of engaging
public transportation, all stemmed from the government regulation no 21/2020
regarding the enactment of Large-Scale Social Restriction or PSBB in Indonesian
abbreviation, the Social Distancing, followed by Government of DKI Jakarta Regulation
no 33/2020 regarding PSBB and capacity limitation on public transportation. This dawn
of social distancing culture has been promoted, pushed (not nudged) as a means of non-
medicinal measure to prevent the spread of COVID-19 virus transmission. The base for
this regulation is the World Health Organisation (WHO) recommendations of keeping
the distance between ourselves and others to a minimum of 1 meter, the standard has
been widely adopted by the Indonesian government as well as arrays of other
recommendation from the WHO such as keeping masks on, washing hands, among
many.
Figure 3.7 September 18th Webinar & When Group Present Research Findings
In this Picture: Dr Agung Wicaksono Representing Cluster 3 ITB Team
(Source: YouTube: Balitbanghub151 Channel)
3.1.4. Commuting Experience and Observation Process

The last but figuratively one of the most important analysis was conducted by the author
as commuter himself by observing the various behaviour at play on transit stations,
inside the vehicle on many different occasions such as early morning, rush hour
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(morning and afternoon), and quiet hours. The observation processes are simple enough
as it is based on the experience of commuting for more than 5 (five) years, some of the
interesting things has been photographed, some are remembered vividly, and the
experience of mingling with the fellow commuters are building many assumptions on
which system being implemented at play that is working, and which that aren’t.
The commuting period itself is split into 2 (two) period as a comparison, the first being
before COVID-19 pandemic, and the latter is after. On both occasions, the apparent
thing to notice on daily commuting experience, other than a significant drop and
capacity limitation after the pandemic, is that both of the times, daily timeframes have
a huge impact on the numbers of commuters, for example, the morning commute usually
consists of the earliest-starts at 5 am with usual commuters assumed to be essential
workers with the earliest start, and followed by the prime morning rush hour with usual
8-5 working schedule. The mid-afternoon usually presents the least numbers of
commuters but sometimes not so apparent, the afternoon on after-hours again represents
the largest of all, with assumed combined numbers of commuters of essential and non-
essential workers (early riser & rush hour types).
As such, this provides the choice architect with information on when the nudges at play
being the most effective, for example, in many TransJakarta transits during peak hours,
the nudges, those such as the signage, queue lines aren’t being too effective simply due
to the many people using the services at the same time. Safety behaviour isn’t affected
as much except the minding your distance part, where physically people are being forced
to reduce their proximities with one another during this time of day. Another thing to
notice is that public space design highly affects people’s behaviour and people’s
acceptance of proposed nudges, this will be explained in more details in the final part
of this chapter.
Some of the notable nudges that works are the implementation of queue lines, signage
and exaggerated display of information, such as the COVID-19 man (see Fig. 3.4). The
COVID-19 man, and several versions of it, directly reminds people to mind their
distance, and in some cases, empowers people to warn others if they are too close as it
is supported by the system and authority and thus became the norm.
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3.2 Implementing Nudge Strategy
3.2.1. Implementing Behavioural Nudge Framework Strategy

For the next data analysis, it is also important to use the predetermined conceptual
framework to try to see how far behavioural nudges concept is being implemented, how
effective it was (if already implemented) and how effective would it be if it hasn’t been
implemented. First, by combining data gathered through a survey, FGD and webinars
(panel of experts), we can start by populating the intervention types list, take an example
from TransJakarta, we can see how the combined effort of attention, interest and action
nudges contributes to intervention effectiveness.
We must also consider the population characteristics of different transport modes user
and how they fare against each other and also in their specific domains where public
space design dictates or at least have a say in how the populace behave in confined
spaces, in queueing, in sitting and in using the public transport facilities. This “design
makes a behaviour” concept is quite apparent when we analyse the different behaviour
of TransJakarta users as oppose to KRL users and MRT users. We also believe that
public space design and the number of passengers determine how effective nudge
policies are, as the difficulties of nudging people into queueing will be exponentially
harder if the station is simply being overrun by people beyond its designed capacity.
Population Characteristics
LRT Users vs Busway Users vs
MRT Users vs Taxi Users
Based on Demographic &

Socioeconomics
Outcome Type
Nudge Intervention Type
Confidence &
Attention Behavior
Descriptive Labelling, Apealing
Intervention
Signage, Visible Logos, Human
Effectiveness Adherence to health
Covid, Etc
(Effect Size) protocols,
Interest
Cleanliness, Safety, Health Protocols consumption / usage
Action of public transport,
Convenience, Ease of Access, Etc confidence
Research Methodologies
FGD, Surveys, Webinar, Sharing Session
(Point of View, Stakeholder Priorities)
Figure 3.8 Projects’ Conceptual Framework of Nudging People for Public Transport
As shown in the previous part of the chapter, we are using various methods to try to
come up with a conclusion and information on the passenger’s behaviour, their interest
and primary concerns to come up with a creative, effective and efficient nudge, as such,
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we need to define a clear and concise framework by combining all sources of
information.
Figure 3.9 Triangulating Several Methods to Confirm Observation
The data collected supports the argument being coined during a brainstorming session
with the panel of experts (through FGD series), it also confirms the author’s observation
in transit stations as a commuter and lay down the foundation to which the author will
be using the conceptual framework of a nudge and Yale’s 4P. The triangulation analysis
would then present itself as a step-by-step finding based on multiple sources and it
shows that people’s behaviour has rapidly changed due to the pandemic, that priorities
and preferences are now set towards using services that can provide peace of mind while
many others would simply try to avoid contracting the virus by avoiding going to a
public place on public transport.
Figure 3.10 Triangulation Analysis Result
As shown in Fig 3.10, by analyzing the data from each source, extract qualitative
information and compile them along with quantitative ones, then focus on finding the
key information from each one, we can try to triangulate the data, compare and contrast
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these key findings across multiple methods for evaluation. These different methods
positively confirm another and it gives a pretty clear view for the author to focus
attention on designing nudges that will impact most of the objective goals itself. The
triangulation yields a focus on which nudge needs to be designed in the subsequent part
of the chapter.
3.2.2. Nudging Public Transport in Indonesia

With this framework, nudges can be evaluated and implemented at once with each little
nudge having a purpose in the greater view of behavioural modification. One of the
main challenges in studying nudge is to implement it, there lies a paradox of conflicting
choices that can be served to people that makes choice architect wondering how small
contextual nudges can alter passenger’s decisions. Based on the insights gained from
FGD series, webinar and public transportation’s passenger behaviour, some of the many
ways in which nudges can be employed to push people toward better trust, commitment
and responsibilities. Using this framework, interventions are being applied step by step
and immediately, the author will show several 4P framework-based nudges with the
goals to:
1. Improving ridership and boost confidence through a sense of ownership;
2. Improving decisions on how to perceive the severity of COVID-19 pandemic;
3. Effectively manage the crowd in public transits to reduce public health risk.
A standardized definition on each intervention is needed in this research, where

Possibilities intervention ought to help nudge people toward investing more trust in
public transport and Jak Lingko beginning with the first until the last miles of ridership,
also nudge people into becoming more disciplined about wearing their safety
equipment, aware of the danger of COVID-19, and socially distancing themselves
without the need of repressive warnings. Whereas Process interventions are what the
author would call the “choice architecture” with specific goals of transforming the way
passengers (after they presented with available options) makes a decision, this is where
nudge became tricky and must be carefully thought about. The moment of truth is where
intervention on Persuasion starts, this is where choice architect placing the visuals at
the right time and at the right place to help the decision-making process. Lastly, to help
make behavioural change sticks, interventions in Person meaning to build personal
goals & pre-commitment, by being proud of becoming part of a cohesive and united
community of rider that contribute to the success of national public transportation.
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Within the past five years, before the pandemic, TransJakarta has managed to boost the
number of demands upward by 300%, increasing coverage to 77% in the greater Jakarta
metropolitan, and in December 2018, the city of Jakarta through the Government
regulation no. 97/2018 (Pergub 97/2018) announces Jak Lingko integration system with
Jak Lingko card, with highlights being that passenger of Public Transportation in Jakarta
can save up to 30% on daily commuting and can be used to transact in TransJakarta,
MikroTrans, MiniTrans, MRT and KRL (Electric Rail Train). These tariffs that were set
are valid for all TransJakarta services that were covered by the Public Service Obligation
(PSO) scheme. This integration is advancing public transportation development in
Indonesia and remain one of the solutions to deal with the city’s congestion.
To make better of the plan to integrate multi-modal transportation services, TransJakarta

also introduces Microtrans, effectively integrating small minibuses formerly let loose
and deemed inefficient. TransJakarta then transforms as a system provider, and track
owner and is supported by the Provincial Government of DKI Jakarta through PT.
Jakarta Transportation. This public-private partnership is aimed to maintain the
consistency of public transportation services by the government while promoting private
business and economic growth that is the catalyst for the city to develop sustainably.
Jak Lingko has demonstrated itself as a great example of Nudge that works for public
transportation in Jakarta. Today, using the card, passenger can have an unlimited ride
for 3 hours by paying Rp. 5000, - or a mere 34 cents, it can be used in multimode
transportation within the greater Jabodetabek, and it is easy to get, easy to use, easy to
top up and to throw away when not needed (opt-off is easy, not mandatory use for this
card as people can opt back using other means of cashless payment).
To transform this nudge into a more powerful nudge, we need to remember that
integrating multimodal payment is one of the keys to the success in marketing these
access card, to some extent, the real Nudge would be to harness Jak Lingko card into
more than electronic money tap card, but an integrated system with passenger details, a
subscription that lasts for more than 3 hours up to a month or some extended period,
and perhaps, Covid-19 insurance detail to provide peace of mind.
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Figure 3.11 Jak Lingko’s Single Card can be used in MikroTrans, MiniTrans, TransJakarta, MRT, KRL
(Source: FGD II – Transport Authority of Jakarta)
We can probably imagine that had the campaign would alter the framing message from
being able to save 30% of transportation costs, to not using the system would render
additional 30% transportation costs, its success would perhaps be more prevalent today.
But perhaps also, we can explore the next and bigger nudge for Jak Lingko, such as the
integration of multimodal payment, which is the next step towards a subscription-based
membership as shown in table 3.6 below.
Table 3.6 Jak Lingko’s Integration with Multi Modes of Transportation as per September 2020
Linked Transportation Modes Pricing Models Proposed Nudge
TransJakarta BRT Rp. 5000, - / 3 hrs Monthly fee for unlimited ride
TransJakarta non-BRT Rp. 5000, - / 3 hrs Monthly fee for unlimited ride
MikroTrans Rp. 5000, - / 3 hrs Monthly fee for unlimited ride
MiniTrans Rp. 5000, - / 3 hrs Monthly fee for unlimited ride
Mass Rapid Transport (MRT) Standard Fee Monthly fee for unlimited ride
KRL (Commuter Train) Standard Fee Monthly fee for unlimited ride
RoyalTrans (Luxury Bus) Standard Fee Monthly fee for unlimited ride
Further enhancement of the public transportation system in Jabodetabek would be to

allow a more powerful Nudges to come into play, one of which that the author has
thought about is the integration with insurance for Covid-19 and other kinds of disease
and accident, but before that even happening, an integrated payment system with a
banking institution, insurance and transport authority will allow Jak Lingko to be
subscription-based, something the author would like to demonstrate using 4Ps
framework below.
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Table 3.7 4Ps Nudge to Improve Ridership and Boosting Confidence Through Sense of Ownership
Improving Ridership & Boosting Confidence
Possibilities
▪ Introducing 3 types of commuting subscriptions beyond Jak Lingko; Ridership
Core, Ridership Xtend, Ridership Ultra. (Explanation on each
membership below)
▪ These subscriptions come with a membership card that can tap to pay to replace
What choices
one-time ride e-money cards. These cards, once purchased, contain personal
are offered?
information and can be updated for its subscriptions with ease.
▪ Multiple payment options / multimodal payment integration; Cash, eMoney,
Jak Lingko Card, Advanced Jak Lingko Card (with access to Bank,
Authority, Insurances)
Process
▪ Ridership Core costs a hypothetical Rp. 50,000, -, both Ridership Xtend and
How are the Ridership Ultra costs Rp. 100,000, -
choices made? ▪ These membership cards come with a bonus of vitamin box, special edition
mask.
Persuasion
▪ Visual selection box placed at the entrance of the bus transits, right before
How are passenger about to tap in, next to cashier counter that will provide the
choices membership card with ease.
communicated? ▪ Signs beside the parking lot of car and motorcycle showing how much carbon
footprint is being released when driving own vehicle vs riding Jak Lingko.
Person
▪ Membership cards are obtained by buying in advanced, with minor data
collections, personal data involving passenger contact info that the membership
will include a text reminder on how much they saved carbon print, how many
How are
kilometres they have participated in commuting using public transport, how
intentions
many trees they saved and other health and safety reminders.
reinforced?
▪ Implementation of Ridership points, which calculated using a certain formula
based on trip kilometres that can be used to purchase discount at next purchase,
also buy memorabilia such as exclusive mask, vitamin boxes, etc.
By introducing 3 types of subscriptions, the author is presenting a readily available

choice for passengers. People can opt for which types of subscription they feel they need
the most, or so they think it is. The reality is, the author is trying to design a choice
architecture that would lead people to opt for the superior version, the Ridership Ultra.
The way it’s going to play out is that the passengers will be faced with the most standard
version, the Ridership Core, which offers passengers the flexibility of unlimited rides
on all TransJakarta BRT corridors and non-corridors buses for some time,
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hypothetically for a month, although this can be expanded when the market allows it, to
be as far as an annual membership. Of course, being the sneaky and cunning as any
choice architect would, this package will be priced the cheapest, assuming that the
numbers were correct in terms of fulfilling the business feasibility requirements,
something that the author isn’t good at.
The second option, the Ridership Xtend, allows a passenger to extend their ridership
to that the MRT, LRT and KRL, this rail-based transportation has been building a strong
footing in Indonesia for the past several years and with the hypothetically higher fare,
enable passengers to ride MRT, LRT and KRL for free for the same period as the core
membership. The third option, Ridership Ultra, would be to join both subscriptions for
the same price, and for that same price, passengers can expect to use all modes of
transportations available in Jabodetabek, that includes Bus Rapid Transit (BRT),
MikroTrans, MiniTrans, MRT, LRT, and Commuter Rail (KRL). The expected outcome
would be the majority of passengers opting for the third as it seems the most superior
among the rest.
Figure 3.12 Illustration for Proposed Jak Lingko’s Upcoming Nudge
To try to see whether this proposed subscription plan has merit, the author conducts a
small experiment using quick polling with a relatively small sample size of fellow
BLEMBA 26 students of SBM ITB Jakarta Campus, author’s family and other
colleagues, below are the result of the preferred subscription plan, taken from 46
respondents.
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Figure 3.13 Poll result in 3 different subscription plans
Figure 3.14 Poll result on 2 subscription plans
By inventing a “dummy” choice, the ridership ultra (which is the targeted nudge result)
are becoming the most chosen subscription for most people by overriding the slow
thinking system that might’ve opted for the cheaper version of the subscription. This,
combined with loss-averse principle, might, after all, boost the consumption of public
transport, because people might be more attracted to use all transport system from First
to the Last-mile simply because they already a subscriber.
Figure 3.15 Increase on Ultra subscription by inventing a “dummy” choice
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Table 3.8 4Ps Nudge to Improve Passenger Awareness on COVID-19 Pandemic Severity
Improving Passenger Awareness on Pandemic Severity
Possibilities
▪ 3 types of passenger profiles: Risk Avoider, Risk Taker and Calculated Risk
Taker with 1 specific being promoted: Calculated Risk Taker.
What choices ▪ These are unique choices as they aren’t presenting themselves in physical form.
are offered? ▪ The ease of working from home regulation will put pressure on passengers to
form one of the following characters: Risk Taker or Calculated Risk Taker, with
the latter at risk of being perceived as annoying, difficult, inconvenient.
Process
▪ First-mile transportation availability plays a huge role, where people can take a
gander to see that the choice to partake in public transportation is more than
just available, but also promising with the capacity arrangement, health
How are the
protocols, free and easy cashless payment, free and easy hand sanitisers, etc.
choices made?
▪ Fleet availability as close at home will become a default option for most of the
people, that, when the loss-averse heuristics kicks in, people will go to partake
in using Public Transportation.
Persuasion
▪ Dynamic and extravagant display at each fleet of Jak Lingko on how severe the
pandemic is, human COVID-19 at transits right after tapping in to remind
people to distance themselves.
▪ Vivid animations showing lung damage and fatalities caused by Covid-19.
How are
▪ Infographics depicting how vulnerable person might get killed by people that
choices
aren’t responsible and spreads virus due to negligence.
communicated?
▪ Passengers will exercise a degree of behavioural change in response to COVID-
19 pandemic situations. Primary motivations are to avoid exposure to the virus.
With better information and information conveying method, this can mean not
to avoid travelling.
Person
▪ Setting campaigned goals that to win against covid-19, everyone must
participate with the same commitments.
How are ▪ Going overboard and remind people through layers of information, displayed,
intentions through ads, text messages or verbally expressed by officials on each transit.
reinforced? ▪ The goal is to boost people’s willingness and ability to adapt to a different new
normal. Another one is to instil information that there is a true risk of contagion,
but it is highly dependent on the disease prevalence within the community.
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Table 3.9 4Ps Nudge to Manage Crowding and Reduce Public Health Risk
Lessens Crowding in Transits and Vehicle
Possibilities
▪ Perceived personal image and sense of achievement of either Cool Rider, and
Need to Learn Rider.
▪ The first being, passengers that followed the health and safety protocols from
the beginning to the end of their destinations, therefore promoting safety
environments, effectively responsible for themselves and others.
▪ The latter being identified with attributes of not wearing personal protective
What choices equipment didn’t apply health protocol and ethics, and the goal is to make
are offered? people feel, by themselves, that this is an unorthodox thing to do (because
everyone else is doing a good job being a cool rider).
▪ This self-isolation feeling of becoming a bad rider/need to learn rider may be
achieved when the society and majority of people within the confinements of
the public transportation system adhere to the health & safety protocol
regulation. This means beginning from platforms, walkways, vehicle, transit
stations, and when they are walking, waiting, sitting, and transferring.
Process
▪ Starting with crowding management, to avoid large gatherings of people.
▪ Carried on afterwards with a vivid display of everyone wearing masks, queue
How are the
for washing their hands, actively keeping distance and remind people to do it.
choices made?
▪ In an environment / public space where there is plenty of support system:
availability of health access, people promoting safety, clean environment, etc.
Persuasion
▪ Exaggerated and funny display, persuading people to become a cool rider.
How are
▪ Visual cues on the floor, reminding people to mind their distance.
choices
▪ Visual cues available from outside the transit stations, walkways, corridors, into
communicated?
waiting bay.
Person
▪ Setting campaigned goals that to win against covid-19, everyone must
participate with the same commitments.
How are ▪ Going overboard and remind people through layers of information, displayed,
intentions through ads, text messages or verbally expressed by officials on each transit.
reinforced? ▪ The goal is to boost people’s willingness and ability to adapt to a different new
normal. Another one is to instil information that there is a true risk of contagion,
but it is highly dependent on the disease prevalence within the community.
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3.2.3. Other Nudges to Consider
Based on primary data set, the author tries to propose some of the notable nudges that
can be implemented throughout the public transportation system. Implementation of
ASI (Avoid, Shift, Improve) that are also mentioned in the FGDs are also pivotal,
meaning we can capture the shifts in people’s behaviour and then tries to embrace and
augmented it in our directions. Some of the worth noting ideas are:
1. Integration of public space with private space with automatic text message for public
health reminders (increasing persistence in overcoming the status quo) upon
entering the premises;
2. Integration of bicycle use in TransJakarta, with a bike rack and bike space inside the
bus with bike lane visuals and access before entering transit stations;
3. Implementation of Nudge approach in all marketing strategy (refer to table 3.9
above);
4. Integrated insurance for Covid-19 within Jak Lingko cards, these are valid for 30
days, to which they will be by default, opted-in for renewal along with the renewal
of their membership, the next renewal will add premiums directly to the next billing
unless the passenger decided to opt-out instead (which can be done but need some
work), this can be the next iteration to Jak Lingko feature, to achieve this level of
integration, however, would require co-operation from multiple parties (transport
authority, banks, insurance).
3.2.4. Psychology of Space: How Design Impact Behaviour

With most of the passenger’s activities spent indoors or in an enclosed environment, the
space that they occupy has a major role in their psychological behaviour. Environmental
psychology is the interaction between people and the spaces they inhabit. Lighting,
colours, configuration, scale, proportions, acoustics, and materials address the senses of
the individual and generate a spectrum of feelings and practices. (Harrouk, 2020)
From inducing warmth and safety, defining well-being, or creating a positive and
efficient working environment, space can have a whole lot of impact on how we act or
on what we feel; therefore, design and creative measures should be considered
according to the social and psychological needs of the occupants. (Kopec, 2006). Space
design became an inherent part of people’s psychology and it is impacting the way
passenger’s think on a subconscious level, contributing to their emotions.
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Figure 3.16 Illustration for Shared Space in Jakarta’s Thamrin street, marking the division of public &
private space, urban planning such as these are crucial to implementing markings and other behavioural
intervention.
There is no doubt whatever about the influence of architecture and structure upon human
character and action. We make our buildings and afterwards they make us. They regulate
the course of our lives. (Churchill, 1924). The design has been analyzed from many
vantage points over the past decades. There is an agreement among experts that the
structure of a building and its interior play a big role in influencing behaviour. Others
believe attitudinal change precedes behavioural change. The activities of passengers
play out inside confided space, the primary crowd activities were walking, waiting,
travelling onboard and transferring. These activities happened inside platforms, station
walkways, and inside the vehicle. The majority of thoughts people have occurred there,
and it is where their primary thinking systems are fired up.
For comparison, below you will find figures of both the MRT, KRL (commuter train)
and Trans Jakarta transit stations, MRT as the latest iteration in Jabodetabek’s public
transportation features a rather fancy visual and signage, and inherently better space
available for a choice architect to design choice architecture. Take a look, for example,
its Platform Screen Door (PSD), the place where passenger usually crowding waiting
for the incoming train or bus. By comparing both stations during peak hours, the MRT
did its nudge far better than KRL or TransJakarta BRT. One can argue that this is due
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to much better space provided, and also the profiles of the passenger by demographic,
as demonstrated by MRTs current corridor serving passengers from rather medium –
high-end areas of the city.
Figure 3.17 Platform Screen Door at MRT Jakarta, with floor sign designed to nudge people into
queueing and prioritizing the exiting passengers
Figure 3.18 MRT nudge for reducing Covid-19 transmission

(Source: MRT Jakarta Presentation at Transit Webinar)
78
Figure 3.19 MRT nudge for reducing Covid-19 transmission
(Source: MRT Jakarta Presentation at Transit Webinar)
It is based on this insight; a choice architect must also consider the field in which he/she
is designing choice architecture. Designing nudges and interventions to keep queue civil
might worked better off at MRT stations with far better capacity, lighting and air
conditioning as opposed to that within bus transits station where it has a smaller
capacity, poorer air conditioning and marginally less exciting lighting properties.
Figure 3.20 Typical MRT station (elevated) design in Jakarta

(Source: jakartatravelguide.com)
79
Figure 3.21 Typical TransJakarta BRT station design in Jakarta
(Source: jakartatravelguide.com)
If we see on figure 3.16, a typical MRT station generally have larger space to
accommodate transitioning passenger, it also has a supportive space to accommodate
even the incoming, travelling and exiting passengers. As such, it allows for designing
more complex visual nudge with clearer labelling on the floor, telling people where
exactly is to queue to get inside and where to allow passengers exiting the trains. The
same thing also occurs in KRL Commuterline, where at some stations, the presence of
floor painting is futile due to the mechanism of the train itself that cannot stop at a
consistent point along the platform floor, these examples of types of physical, feature
and space limitation will limit how the choice architect designed their nudge.
Figure 3.22 Typical KRL Station Platform, with no queue line due to KRL unpredictable stop behaviour
(Source: liputan6.com)
80
81
CHAPTER 4
CONCLUSION AND IMPLEMENTATION PLAN
Based on this research using approach on behavioural nudges, the author would like to
present several key conclusions and recommendation as well as the implementation plan
to answer the research challenges and questions. Several examples of policy
intervention as well as some that might be categorized as choice architecture highlights
the wide range of insight that behavioural economics offer into everyday human
behaviour. Many more applications especially in Public Transportation are possible, for
example, focus on using simplified, low-cost system to inform passengers on how
packed each transit stations are in real-time, using simple colour-coded diagrams on
mobile maps and apps, and provide people with choices of routes and modes on how
they can get to their destination, this is nudging at its purest form, where people will be
expected to opt for the less densely packed stations and thus self-organizing and
releasing jams and choke points that are a source for virus contamination and spread.
Subchapter below will answer the very specifics of this research question.
4.1 Conclusion
1. How important are the nudge approach in designing choice architecture that
effective for people?
Since the policy is aimed at people, with inherent bias and a complex thinking
system as demonstrated in the recent discoveries by the behavioural scientists, these
biases are difficult to alter and almost impossible to avoid. Because of this, the goal
of nudging people is to understand that humans aren’t rational, over the top, non-
stop analytical thinking man, but rather people with flaws and biases, and so nudges
are designed in a specific way to give a small push to people in a way that benefits
their lives, and also latched inside their mind voluntarily. This way, nudge can and
will lead people to behave in a better, and more beneficial ways. In public
policymaking, especially for public transportation agendas, nudge has already
proven to be wildly effective in crowd control, increasing ridership, manage
behaviour and overall, very important and should be prioritized by every choice
architect/policymaker.
82
2. How far are behavioural nudges being implemented through protocols inland public
transport?
Throughout the entirety of this research, we’ve seen examples from public
transportation stakeholder through their participation in the FGDs and Webinars.
We’ve also come across some wildly unique and creative nudge being designed by
operators; buses, online taxis and ojeks, altogether they combined to be knowledge-
based information on what behavioural intervention is considered as nudge and what
isn’t, also which nudges are effective and what isn’t. To say that nudge has been
implemented widely is an overstatement, in a way, from the panel of experts and
operators presenting their progress on FGD sharing session, almost no participant
ever mentioning the word nudge until the final webinar where a representative from
the MoT mentioned the important of Nudging (see table 3.5 on Q&A from MoT)
whilst giving feedback on the presentation brought by Cluster 3 Research Team
represented by Dr Agung Wicaksono, that the author is also a part of.
There is a need to clear up some misconceptions about a nudge, also to distinctively

sets apart policy interventions and identify exactly which are considered a nudge,
no mask no ride isn’t 100% nudge, bundling mask with a train ticket is. Although
one can argue that in emergencies such as the pandemic, a stronger policy
intervention (one with penalties and involves a forceful acceptance) is needed, and
it should, this is one of many restrictions in designing nudges. Nudges should be
viewed as a tool that can be summoned when the situation allows, that when used
correctly, can have a massive and deep impact on the lives of many people. The
introduction of Jak Lingko in 2018 have a serious impact on the traffic congestion
in Jabodetabek, it also propels the biggest growth of ridership before the pandemic,
all in one swoop of ingenious integration. The design of Platform Screen Door
(PSD) at MRT stations in 2019 is a great nudge, from the start of its operations, the
passengers of MRT are being conditioned to behave in certain ways, numerous
media coverage on this nudge also setting up a new culture of riding MRT the right
way.
That being said, many nudges ideas are still hasn’t been explored further, the classy
choice design harnessing availability heuristics as demonstrated in chapter 3 hasn’t
exactly popular, and this is simply due to the limitations imposed by the mechanics,
83
or space design of public transportation. When the circumstances allow, we can
imagine great nudges such as the integrated Jak Lingko cards with personal data,
carbon footprint, reward points and insurance coverage, but until then, we will work
on it as thought experiments.
3. How are land-based public transport fare against one another in terms of how nudges
work in each transportation type (Micro Bus, Mini Bus, Trans Jakarta Buses, and
MRT, KRL or LRT)? Do externalities such as the design of public space have an
impact on how effective nudges can be?
Trans Jakarta has been around much longer than MRT and LRT, each has a
difference in tariffs per kilometre, and each has a different approach on public space
design. In the previous chapter, we’ve discussed how integration with multi-modal
payment might be the key to the greatest nudge in Public Transportation, but the
reality is, although in terms of accessibility, Jak Lingko provides integration well,
the difference in tariffs per kilometre is the one factor that sets each transportation
modes apart. Eliminating this factor, we then can take a look at what might be the
key difference, other than price, that is the inherent design of its public space. MRT
Jakarta and LRT have demonstrated a vivid nudge initiative due to it having a better
mechanism, technology and space. KRL commuter line and Trans Jakarta exhibit a
limiting factor for a choice architect to design their nudges. For example, the way
KRL train stops at the platform doesn’t allow for pre-constituted floor signage that
can alter the behaviour of the passengers. Qualitative analysis on transits state of
affairs revealed that indeed design shape behaviour, and to some extent, it might be
the thing that makes or break the policy interventions effectiveness and the nudge
that follows.
In summary, when designing choice architecture or policy intervention, policymakers

must remember that the goal is to ease people into adhering to procedure, rather than to
force protocols unto them. Secondly, people behave in a complicated manner, and thus
policymaking must focus on harnessing these complicated patterns of heuristics to
nudge people into the desired actions and outcomes. Lastly, designing public space
design that allows for proper visual cues, signage, lines and other nudges can be tricky
because public space initial design itself has an impact on how people make decisions
84
as simple as queueing and adhering to health protocols such as keeping up their
distances between each other.
4.2 Recommendation
Here are a few recommendations based on this research:

1. Government of Jakarta, as the capital of Indonesia and role model of Transportation
Initiative of the country, should set a far-off target in implementing nudge, in all key
areas of improvement for the sustainability and resilience of Public Transportation;
2. The government could establish nudge unit, similar to those established in the US
(see President Obama’s Social and Behavioural Sciences Team (SBST)), UK (see
Behavioural Insight Team) and several other countries. This “nudge unit” serves as
an advisor to government policymaker and instilling a perfect nudge principle to
persuade, alter behaviour and effectively achieve goals for the public good;
3. Nudges are also affected by the leadership and people at the helms and the heart of
public policy initiatives, as shown in various government, for example in the US,
nudge-based policies became successful during the Obama administration as
opposed during Trump’s. This year, during the final phase of this paper, the
governor of Jakarta, won the award from Transformative Urban Mobility Initiative
(TUMI) that emphasizes the success of the city of Jakarta to integrate its public
transportation through a long journey of improving and innovating. It is
recommended that policymakers to embrace the knowledge from behavioural study,
to come up with initiatives that are based on nudge principles;
4. Policymakers are also needed to commit to nudge initiative, apart from

implementing nudge unit inside the government, the policymakers must think, and
act as choice architect, knowing well that he/she has the power to nudge masses and
create wonders using a simple push;
5. Policymakers also need to understand that public space design affects people’s
mood, people’s behaviour and how easy people can be managed;
6. Policy interventions must be focused on growing and convincing people to use and
trust public transportation;
85
7. Policy interventions that are designed should be free and designed for the greater
good of people (Thaler, 2008);
8. Policymakers should understand the complex human behaviour and harnessing its
biases to nudge people in the right directions;
9. Nudge techniques could be base on several rules of thumb to increase effectiveness:

a. Nudging should be fun to increase the retention and effectiveness of people;
b. Nudge should revolve around the effort to make everything easy, presenting
default options will make people less worry and overthinking which can
deviate behaviour poorly;
c. Nudge, as intervention, should be able to slow down the decision process,
making sure that the automatic system is adjusted down, allowing people to
decide the best options pertinent to their cause, greater good and rather, their
reflexes (or mindless choosing);
d. Nudge should follow or rely on common sense, as a compass for when
rationality gets clouded by poor judgment;
e. People being nudged need to be given a chance to provide feedback.
Table 4.1 Traditional v. Nudge Approach in Marketing Public Transportation

Traditional Approach Nudge Approach
Traditional Marketing Approach Choice Architecture & Nudge
Maximising Profits and Business First Benefiting to Customers
Focus on what needs to be sold Focus on options that are best for people
Not giving alternatives Letting people opt-in or opt-out freely
4.3 Implementation Plan
A proposed implementation plan will be focused on a step-by-step strategy of how to

implement nudges in public transportation. These will incorporate the nudge pyramid
process that has been discussed in chapter 2 (see figure 2.13) with emphasis on the
design of nudges, structure and education towards policymakers. This can be achieved
by first establishing formal organization within the executive branch of the government,
city government and central government alike all might benefit from such an advisory
team. The initiative should then be followed suit with a key step of implementing
system-wide nudges, these steps are:
86
1. Defining Changes
Early in the process before even imagining any policy intervention whatsoever, a
choice architect should define the problem that needs people to be nudged with. If
the desired outcome is well defined and articulated among all stakeholders, it will
pave the way to a successful behavioural change regiment;
2. Stakeholder Analysis & Gathering Insights

This is digging insights, knowledge and information from stakeholders, including
subject matter expert, as such has been demonstrated in this research paper, where
the author is setting up, recording FGDs twice and followed by Webinar and lastly
a survey round. This is how the choice architect can forecast changes and whether
it will affect all stakeholders;
3. Setting up a Timeline
The hallmark of this entire research is the ability to recognize cognitive biases when
it comes to playing, and people have the tendency to be over-optimistic, behavioural
scientist often called it optimism bias, and such, choice architect must remember
that him/herself is also sharing the same tendency of over-optimism. So, when it
comes to implement nudges and start behavioural change program, take note of this
cognitive bias then utilize all resources carefully and rationally to achieve a
reasonable, achievable and realistic timeline to avoid optimism bias and the ensuing
delays. True example; yours truly have convinced himself that this paper would
finish on time, it barely didn’t;
4. Making it Inclusive
A choice architect must understand what people needs and wants, and those people
that we are about to nudge are the very people that can help us figure it since it was
theirs, to begin with. Surveys, interviews, getting to know people and their
expectation is a good way to start including them into nudge design and make it
more effective;
5. Setting up a Feedback System

Since nudge itself must be free, feedbacks are required to ensure that the nudge is
correct, the key indicator is that whether the nudge can last and linger long enough
87
it became a norm for people to behave in such a way that it no longer apparent that
they’re being behaviourally modified;
6. Effortlessly Implement Nudge

As a choice architect, a leader and agent of change, removal of problems,
bottlenecks and any inefficiency are mandatory. All nudges must be easy to
implement, easy to run with, and easy on the people.
Figure 4.1 Behaviour Modification Implementation Using Nudge Plan Involving 6 Steps Guide
88
89
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APPENDIXES
Appendix 1. Survey Questions
Figure A.1.1 Respondent Profiles
Figure A.1.2 Covid-19 Pandemic Impact on Lives and Wellbeing
Figure A.1.3 Daily Activities
92
Figure A.1.4 Expenses and Public Transportation
Figure A.1.5 Transaction Mechanism & Preferred Payment Method
Figure A.1.6 Transaction Mechanism & Preferred Payment Method
93
Appendix 2. Survey Data Result
Figure A.2.1 Survey Data Profiles
Appendix 3. Nudge Strategy Insights from FGD & Webinar
Figure A 3.1 Trans Jakarta Strategy to Deal with Pandemic
Figure A.3.2 DAMRI Strategy to manage capacity and enact social distancing
94
Figure A.3.3 City of Jakarta Rolling out New Royal Trans with Safety and Health features
Figure A.3.4 Trans Jakarta strategy to deal with Covid-19 with some apparent Nudges
95
Figure A.3.7 PT Blue Bird Tbk. (BIRD) & its company protocol to combat Covid-19 spread
96
Figure A.3.8 GRAB employing GrabProtect initiative to bring back the confidence of passengers
97
Appendix 4. Quick Polls on Subscription Plan to Blemba 26 & Colleague
Web Poll Hyperlink: https://forms.gle/W1xPAncaRCwmHyFF9
Figure A 4.1 Quick Polls for Subscription Plan Question 1 (Nudge A)
98
Figure A 4.2 Quick Polls for Subscription Plan Question 2 (Nudge A)
99

2.1 Final Project Revised - Felik Widyo Makuprathowo

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POLICYMAKING POST COVID-19 USING BEHAVIOURAL

NUDGES FOR PUBLIC TRANSPORT IN JABODETABEK

Master of Business Administration Program

Felik Widyo Makuprathowo

Date of Passing of Final Test (25/01/2021)

Date of Graduation Ceremony (April 2021)

Master’s Program, Bandung Institute of Technology, 2020

Final Project Advisor: Dr. Agung Wicaksono, M.Sc., MBA

Keywords: behavioural science, behavioural economics, nudge, public transport,

Felik Widyo Makuprathowo

Tanggal Kelulusan Sidang (25/01/2021)

Tanggal Wisuda (April 2021)

Program Magister, Institut Teknologi Bandung, 2020

Pembimbing Thesis: Dr. Agung Wicaksono, M.Sc., MBA

Kata Kunci: Perilaku Manusia, Ekonomi Perilaku, Dorongan Perilaku, Nudge,

POLICYMAKING POST COVID-19 USING BEHAVIOURAL

FELIK WIDYO MAKUPRATHOWO

Master of Business Administration Program

School of Business and Management

Bandung Institute of Technology

Final Project Advisor

Dr. Agung Wicaksono, M.Sc., MBA

Jakarta, 23rd December 2020

Felik Widyo Makuprathowo

1.1 Background ...................................................................................................... 19

1.2 Public Transport Stakeholder & Policymakers ............................................... 22

1.3 Problem Formulation ...................................................................................... 26

2.1 Literature Review ............................................................................................. 31

2.2 Harnessing Biases as Implementation Strategy............................................... 37

2.4 Research Methodology .....................................................................................46

2.6 Data Gathering Details ....................................................................................49

3.1 Behavioural Insights on Road-Based Public Transportation in Indonesia......53

3.2 Implementing Nudge Strategy ..........................................................................66

4.1 Conclusion ........................................................................................................82

Figure 1.1 Aggregate Data of Visitor Trend in Transit Stations ................................20

4P Possibilities, Process, Persuasion, Person

1.1.2. Behavioural Economics for Public Policy

1.1.3. Adopting Nudge Principles

1.2 Public Transport Stakeholder & Policymakers

Figure 1.3 Organisational Structure of the Ministry of Transport

1.2.2. Organda (Organisation of Local Public Transportation)

1.2.3. PT Transportasi Jakarta (TransJakarta)

1.2.5. PT Kereta Api Indonesia (Persero)

1.2.6. PT Mass Rapid Transit Jakarta (Perseroda)

1.3 Problem Formulation

These “econs”, therefore, could be described as being analytical, reflective, effortful,

Secondly, although there have been many proponents to Evidence-Based

For a policy to count as evidence-based, it must be evaluated utilising an empirical,

1.5 Research Questions

1.6 Research Scope & Limitation

2.1 Literature Review

2.1.1. Behavioural Economic Study

Behavioural economics draws on psychology and economics to explore why people

Figure 2.1 Typical Human Thinking Fallacies.

2.1.2. How We Think, the 2 System

Table 2.1 Two cognitive systems

This is known as representativeness heuristics bias and is one of the aforementioned

2.1.3. Behavioural Nudge & Choice Architect

2.2 Harnessing Biases as Implementation Strategy

By merging behavioural science with this research’s primary data (Public

Figure 2.6 The Economist Subscription with 3 Options Available

Figure 2.7 The Economist Subscription with 2 Options Available

2.2.2. Loss Aversion

Similarly, loss-averse happens anywhere and impacting decision making processes of