PAPER

INTRODUCTION TO MACRO ECONOMY

“GOVERNMENT'S ROLE IN TRANSPORTATION”

Lecturer : Dr. Regina Niken Wilantari, S.E., M.Si.

Group 4:

Nabila Fauziah Putri (210810201029)

Afifatul Fairus Shohibah (210810201072)

Merisa Indrayani (210810201108)

Hilwa Asy Syifa Aulia (210810201118)

Wanda Puspita Sari (210810201220)

S1 STUDY PROGRAM MANAGEMENT

FACULTY OF ECONOMICS AND BUSINESS
MUNIVERSITY JEMBER
2021
 FOREWARD

Thank God we pray to God Almighty. By His grace and grace, we were able to complete
the assignment of the Introduction to Macroeconomics course paper right time. Don't forget to
send shalawat and greetings to the Messenger of Allah, whose intercession we look forward to in
the future.

The success of writing a paper entitled "Government’s Role in Transportation" can be

completed because of the help of many parties, especially Mrs. Regina Niken Wilantari as a
lecturer in Introduction to Macroeconomics. We hope this paper can be a reference for interested
parties.

The author realizes that this paper still needs improvement, especially in the content
section. We accept all forms of criticism and suggestions from readers to improve the paper. If
there are many mistakes in this paper, we apologize. We, therefore, convey. Finally, I hope this
paper can be useful.

Jember, 20 October 2021

Drafting Team

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 TABLE OF CONTENS

PAGE TITLE ................................................................................................................................... i

FOREWARD .................................................................................................................................. ii

TABLE OF CONTENTS............................................................................................................... iii

CHAPTER I PREFACE ................................................................................................................. 4

1.1 Background ...................................................................................................................... 4

1.2 Formulation of Problem ................................................................................................... 4

1.3 Writing Purpose ............................................................................................................... 5

CHAPTER II CONTENTS ............................................................................................................ 6

2.1 Government Policy in Transportation Development ....................................................... 6

2.2 The Government's Role in the Recovery of the Transportation Sector during a
Pandemic ................................................................................................................................... 10

CHAPTER III CLOSING ............................................................................................................. 14

3.1 Conclusion........................................................................................................................... 14

REFERENCES ............................................................................................................................. 15

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 CHAPTER I

PREFACE

1.1 Background
Transportation is an element that cannot be abandoned. Because transportation is a vital
factor in traffic, which in addition to its purpose to provide facilities to the community, it is
precisely with the existence of transportation that can reduce the occurrence of existing
congestion. Development in the transportation sector is a field that supports the development
of other sectors to realize national development targets both in urban areas and in rural areas.
With the existence of transportation, where it becomes a very important means for mobility
and distribution processes, for example goods and services.

Therefore, the government is required to regulate public transportation and other

matters. Especially in the transportation sector, which provides a facility that is in accordance
with the needs and development of the community in order to create an orderly, safe,
comfortable and low-cost public transportation service. Indonesia is an archipelagic country, a
densely populated country, with a population of approximately 265 million people. This makes
Indonesia occupy the number 4 position in the world with the largest population. In Indonesia,
the development of transportation facilities is still lagging behind neighboring countries such
as Singapore. The cause of this problem itself is that the regulations of each country are
different and the way the government handles it is different.

Indonesia is one of the countries affected by the COVID-19 pandemic in the air
transportation sector. Where the number of aircraft passengers decreased sharply. This is
inversely proportional to transportation in urban areas. Passenger interest remains high even
though transportation control through the implementation of health protocols has been carried
out, such as maximum passenger restrictions and so on. A number of efforts have also been
made, such as providing alternative facilities other than KRL, namely buses and the
implementation of working hours.

1.2 Formulation of Problem

Based on the above background, the formulation of this paper is as follows:

1. What is the government's policy in developing public transportation?

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 2. What is the government's role in the recovery of the public transportation sector during the
pandemic?

1.3 Writing Purpose

The purpose of writing this paper is to provide information to readers about the problems of
the transportation sector so that the government's role in the development of transportation is
needed. In addition, it also provides information related to transportation conditions during the
pandemic and the role of the government in the recovery of the transportation sector during
the current pandemic.

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 CHAPTER II

CONTENTS

2.1 Government Policy in Transportation Development

Transportation has now become an important need for everyone, because it is useful
for the distribution of goods, labor, and is the core of economic movement in cities and
villages. This is because transportation can support daily activities and its existence is very
important to support community mobility. One part of transportation in urban areas is
public transportation. Public transportation is a means of transportation used by the general
public with a group travel system which is usually accompanied by a schedule, a set route
operation and a fee for the trip. Public transportation is generally trains, buses, and public
transportation. With this public transportation can reduce traffic congestion because it has
a large carrying capacity.

However, there are several problems related to public transportation in urban areas.
In fact, public transportation in urban areas still needs to be improved in various sectors.
The problem is related to the fleet, poor service quality, including comfort, security, and
ease of access, support for transportation facilities and infrastructure, human resources, as
well as the discipline factor of passengers, vehicle operators and road users, and
infrastructure.

1. Inappropriate fleet

This problem is something that is often heard, because in fact in the field there are
still many public transportations such as city buses and public transportation that are no
longer suitable for use and need to be rejuvenated by public transportation. There are many
buses and angkots whose seats are damaged and worn, and the engine of the vehicle is old.
This needs to be considered because the use of public transportation that is not suitable for
use can endanger passengers and pose a large risk of accidents. Checks such as checking
the condition of tires, brakes, light functions, and other bus equipment are needed.
According to the head of Caretaker Organda Surabaya, Ateng Aryono explained, many
public transportations in Surabaya have expired and the machines are starting to become
unfit for use because they are more than 10 years old.

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2. Poor service quality

Poor service needs to be addressed so as to foster public interest in using public

transportation. The lack of security system makes people afraid to use city public
transportation. There are still many cases of crimes such as pickpocketing and hypnosis
shows that the security system is still far from being safe. As well as the irregular and
consistent schedule caused by the use of the time table that is still not optimal. Not only
that, the company's management is less than optimal and the presence of drivers who lack
discipline such as lack of sleep hours, using illegal drugs make the problem of poor service
quality worse. The lack of comfort offered also makes people less interested in using this
public transportation, such as the absence of air conditioning, damaged seats, and the
absence of handrails on the roof of the vehicle. In addition, the lack of easy access to public
transportation adds to transportation problems, especially in big cities.

3. Facilities and infrastructure

Inadequate availability of stops and travel route information boards. The location
of the bus stop that is not strategic makes the passengers lazy to wait for this public
transportation. The number of bus stops near busy and slum markets and even many people
use it for selling has shifted the function of the bus stop as a place to wait for public
transportation. And the lack of travel route information boards makes prospective
passengers feel confused. In addition, the absence of additional road widths often creates
new problems, namely congestion.

4. Human resources

The lack of passenger discipline is also a new problem for public transportation.
The number of passengers who do not comply with regulations when using public
transportation such as doodling the fleet, spilling food and drinks that can contaminate the
transportation fleet, passengers who exceed the capacity of the vehicle. In addition, the lack
of discipline of public transport drivers, causes a high number of accidents. Violations
committed include violations of road markings, stopping passengers on the shoulder of the
road that can disturb other drivers, equipment and vehicle conditions that are not suitable
for use, reckless drivers, and incomplete documents.

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5. Regulators

There is still overlapping of public transport arrangements in the field and the
existence of overlapping public transport routes, making the comfort of the passengers
disturbed. This of course can take time which has a direct impact on the passengers. This
is caused by the existence of supervision and regulation of public transportation that has
not been optimal.

6. Congestion

This problem is certainly familiar, with the rapid population growth in big cities
ranging from 3% -5% per year, the high number of private vehicle use, and the inadequate
quality and number of public transportation vehicles adding to transportation problems in
Indonesia. Where the problem is not balanced with adequate infrastructure development
such as road widening, and better traffic management will increase congestion in cities.
The number of vehicles that stop or park on the shoulder of the road is also a driving factor
for congestion. This of course makes the flow of vehicles become sluggish and driving
speed decreases. It is worried that this congestion makes people less interested in using
public transportation because it makes time loss, wastes energy, and increases air pollution.

The problems related to transportation as described above need to be addressed. To

overcome this, it is necessary to realize the leading mode of transportation. The leading
mode of transportation for the socio-economic community and the country's economy is
needed along with the impact of the existence of the development of transportation modes.
In this case, government policies play a very important role in accelerating development.
Transportation plays an important role in realizing the economic development goals of
society and the state. Therefore, government policies related to the development of
transportation modes must be able to play their role in a sustainable transportation mode
system. With the development of sustainable transportation, it is hoped that it is crucial to
deal with development problems in a sustainable manner.

The government must make efforts to develop transportation modes to support the
increase in national income accompanied by an even distribution between residents. The
government is also expected to continue to encourage and facilitate development in the

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development of useful transportation facilities and infrastructure to support the
improvement of the community's economic growth sector, both at the national and regional
levels. In order to meet development needs, it is necessary to realize service reliability and
integration between and intra-mode transportation which can be achieved by improving
national transportation with the support of innovative and quality human resources.

In the national transportation improvement agenda, the government is making

efforts with the 2020-2024 National Medium-Term Development Plan. In the national
medium-term development plan, the government places the railway as a priority. This is
because the train is considered to have advantages in terms of transport capacity, speed,
safety, energy saving, and environmental friendliness. To overcome problems related to
traffic density, the government is seeking supporting facilities by building flyovers or
underpasses for railway lines. In addition, to ensure eligibility, the government seeks
regular asset maintenance.

Not only that, the government also carries out several policies such as road
transportation development and urban transportation development which have an
important role. The Minister of Transportation also revealed that there are a number of
strategic projects in the transportation sector which are new innovations to have a positive
impact on the community's economy. These strategic projects include urban transport
subsidies; revitalization of type A terminals; Cooperation for the Use of Type A
Passengers; BLUE (Electronic Test Passing Evidence) activities; Land transportation
support in KSPN Watobi, Morotai, and Likupang; Construction of 12 ports in North
Sumatra; Construction of international freight terminals in 6 locations; Construction of a
number of land transportation, such as ferry boats, 4 units of water buses, and 280 units of
school buses.

The low awareness of transportation wheel drivers, especially land transportation

on driving safety is one of the reasons that transportation is not optimal in Indonesia.
Therefore, in the future the government will strive for a good transportation system by
educating the public on how to carry out good transportation. The government also held e-
ticketing as an effort to improve public transportation services. This is a manifestation of
the development of information technology that is growing rapidly in aspects of life. With

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 the application of e-ticketing, it is expected to improve public services and convenience in
using public transportation. The efforts made by the government are expected to improve
national transportation.

2.2 The Government's Role in the Recovery of the Transportation Sector during a Pandemic

The spread of the corona virus (COVID19) in 2019 in all countries in the world,
including in Indonesia, faced difficulties. The COVID19 pandemic has impacted all
sectors, including transportation. One of the impacts is a decrease in transportation
movements due to restrictions imposed by government policies. Transportation of
passengers, goods and logistics to charter or charter traffic is directly affected. In addition,
it will decrease after the implementation of the Large Social Restrictions (PSBB) which
can officially have an impact on the use of public transportation, because the freedom of
community activities has been limited.

The transportation sector is the sector most affected by the COVID-19 pandemic.
Based on data from the Central Statistics Agency (BPS), the Indonesian economy was
reported to have contracted by 5.32% in the second quarter of 2020 with the largest
contraction occurring in the transportation and storage sector which contributed 3.57% to
GDP. This resulted in a very drastic decline in the entire national transportation system to
the detriment of many companies in the transportation sector.

1. Land Transportation

The COVID-19 pandemic has impacted many sectors, including the online
transportation sector. Community activities due to the government's social restriction
policy are considered quite detrimental to online transportation, especially online
motorcycle taxis. Online motorcycle taxi workers experience a very severe economic
decline and even financial difficulties, which have an impact on the welfare and
psychological state of online motorcycle taxis themselves.

2. Air Transportation

One type of transportation that is experiencing a recession is air transportation. The

impact of Covid-19 in various sectors due to restrictions on people's freedom of movement,

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including a decrease in the number of passengers on air travel models such as airplanes,
both for domestic and international passengers. The global aviation sector has been
severely affected by the Covid-19 pandemic, including Indonesia, where the number of
passengers has fallen drastically since the first quarter of 2020. In July 2020, its
performance started to climb with a 42% increase. The implementation of the government's
large-scale social restriction (PSBB) policy to prevent the spread of the corona virus has
an impact on the temporary suspension of mass transportation services, including air
services such as PT. Garuda Indonesia. The existence of the PSBB policy resulted in a very
striking decline in ticket sales, because many passengers canceled their travel plans because
there were too many rules that had to be obeyed before leaving by plane, resulting in a
decrease in the income of most companies involved in the aviation industry.

3. Sea Transportation

In sea transportation, the transportation service authority has limited the operating
time of crossing traffic for the transportation of goods by vehicle. This has resulted in a
drastic drop in demand, impacting the productivity and performance of the crossing traffic.
The port closures carried out by the company are aimed at preventing the spread of the
Covid-19 virus. The closure decision was made to help the government prevent the spread
of the virus and support government programs.

In this case, the government's role is very important in restoring the situation in the
transportation sector that is experiencing a crisis, both in the land, air, and sea transport
sectors. As stated by the Minister of Transportation Budi Karya Sumadi during the virtual
discussion event "Public Transportation and Economic Development during the
Pandemic", that the government continues to try to restore the transportation sector which
was under pressure during the Covid-19 pandemic. For example, what happens in urban
transportation such as the Jabodetabek KRL, people still have a high interest in riding the
Jabodetabek KRL even though transportation controls have been implemented following
health protocols, such as: limiting the maximum capacity of passengers in transportation
and etc. Other efforts have also been carried out, for example, the provision of alternative
vehicles, one example is buses, then efforts to enforce working hours with different
schedules between companies to minimize congestion.

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 Then the Indonesian Technical Deans Forum (FDTI) held the 1st webinar series
which had the theme "Transportation Challenges in the Pandemic and New Normal
Period", this webinar was held on Saturday 6 June 2020. In the event, it was revealed that
the making of the transportation concept must be balanced between economics and the
implementation of health protocols. So, next, the government reorganized transportation
operations through visibility measurable and calculations operational. Considerations
These Should be considered further by considering the principles of health in transport. So
that they can choose to move most of the strategy among the various options that exist to
create new regulations in response to standards transport the new in Indonesia.
To regulate the movement of people by implementing health protocols, several
director generals under the Ministry of Transportation immediately issued Circular Letter
No. 7 of 2020 which controls the land, rail, sea, and air transportation. This Circular
contains the criteria and requirements for people's travel in the era New Normal to a
productive and safe society from COVID-19. This was circulated by the Task Force for the
Acceleration of Handling Covid-19 on June 6, 2020. This circular contains the criteria and
requirements that must be carried out by the community following the health protocol. The
journey passenger referred to in this circular letter is the movement of people from one
area to another based on the boundaries of the provincial/district/city government and the
arrival of people from abroad who enter the territory of the unitary Republic of the
Republic. Indonesia by private vehicle or public transportation by land, train, sea, and air.
The criteria and requirements written in this circular are as follows:
1. All residents who travel must implement and obey health protocols such as wearing
masks, maintaining distance, and washing hands as criteria for people's travel.
2. Domestic travel requirements:
a) All residents who travel using their own or private vehicles must be responsible
for their respective health, and must also obey and comply with the terms and
conditions that have been applied;
b) All citizens who travel by using public transportation either by land, rail, sea, and
air are obliged to carry out all the requirements, as follows:
1) Show personal identity (KTP or other valid identification);

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 2) Shows a negative PCR test certificate valid for 7 days or a non-reactive Rapid-
Test test certificate valid for 3 days upon departure;
3) Shows symptom-free certificate for example influenza (influenza-like illness)
from House Doctor Hospital / Health Center. This matter applies to areas that
do not have PCR and/or Rapid-Test testing facilities;
c) Domestic travel is excluded for commuter and passenger travel within
agglomeration/metropolitan areas.
d) Download the Peduli Lindungi application then activate it via your respective
cellular.
3. Travel requirements for people arriving from abroad:
a) All citizens who come from international or overseas are obliged to obey and comply
with the applicable terms and conditions:
1) All citizens who are not Indonesian citizens or come from abroad are required to
carry out a PCR Test when they arrive in Indonesia if they have not done a PCR
Test and do not get permission to show a PCR Test result letter from the country
they departed from;
2) PCR examination test for travel of people who come from abroad except PLBN
(Post Cross State Borders) because they do not have PCR equipment, by
conducting rapid tests and showing symptom-free certificates such as influenza
(influenza-like illness), and there is also an exception for going home for travelers
who pass the PLBN if they show a certificate of being free of symptoms influenza
(flu-like illness) from a doctor/hospital health authority.
b) While waiting for the results of the test PCR, everyone must be quarantined and they
are in facilities quarantine special provided by the government; or
c) Use of quarantine accommodation (hotels/inns) that have received certification from
the Ministry of Health for the implementation of COVID-19 quarantine
accommodation;
d) Download the Peduli Lindungi application then activate it via your respective
cellular

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 CHAPTER III

CLOSING

3.1 Conclusion

Transportation has now become an important need for everyone because it is a

supporter of daily activities and its existence is very important to support community
mobility. However, public transportation in urban areas still needs to be improved in
various sectors. The problems are related to the fleet, poor service quality, discipline factors
for passengers, vehicle operators and road users, and infrastructure. In this case,
government policies play a very important role in accelerating development.

In the current pandemic era, the sector most affected by the Covid-19 pandemic is
the transportation sector. The government's role is very important in restoring the situation
in the transportation sector that is experiencing a crisis, both in the land, air, and sea
transportation sectors. With that, the government reorganized transportation operations
through measurable visibility and operational calculations taking into account the
principles of health in transportation. To regulate the movement of people by implementing
health protocols, the government applies certain criteria and requirements that must be met
by the community, such as the obligation to wear masks, carry out PCR tests, and carry out
quarantine.

The success of development in the economic field must be supported by the

development of a good transportation system, in accordance with the needs and demands
of the times. This is because transportation has a crucial role in supporting the economic
growth of the community. In this case, the role of the government is very important in
accelerating development to support the increase in the economic growth sector of the
community, both regionally and nationally.

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