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Making TransJakarta a World Class BRT System - ITDP | Institute for ...

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IV. 3. Demand Impact of Different Fare Structures<br />

<strong>ITDP</strong> was asked by <strong>TransJakarta</strong>:<br />

o What would be the optimum flat fare<br />

o What impact would shifting to a distanced based fare on one or more corridors<br />

have on revenues and profitability.<br />

o What would be the impact of having distance-based fares on Corridor II and<br />

III but flat fares on Corridor I, and <strong>for</strong>cing passengers to pay again when<br />

transferring between lines I, II, and III<br />

IV.3.a. Optimal Flat Fare<br />

<strong>ITDP</strong> found that the optimum fare given the system’s current capacity would be Rs.2100.<br />

This would yield both higher revenue and higher profits than the current Rs.2500 fare due<br />

to capturing more short distance trips along the corridor.<br />

Morning peak hour<br />

demand<br />

(paying<br />

passengers)<br />

max<br />

frequency<br />

bus/h<br />

collected running operating gain<br />

fare Rp<br />

fare USD km cost USD USD<br />

2500 11523 3201 2732 1973 1228 40<br />

2200 14634 3577 3248 2346 1231 52<br />

2100 16511 3853 3618 2613 1239 56<br />

2000 18191 4042 3955 2857 1186 63<br />

1800 21640 4328 4516 3262 1066 69<br />

1600 25172 4475 5153 3722 753 77<br />

1400 28759 4474 5671 4096 378 86<br />

1300 30445 4398 5842 4219 178 89<br />

Even if passenger trips is maximized at a fare around Rp1500, the optimal fare is around<br />

Rp2100, when factoring in operating cost, which increase proportionally to the demand.<br />

If the corridor were designed to handle higher capacity, and the desire was to maximize<br />

ridership, a Rp1800 fare would still generate reasonable profits.<br />

IV.3.b. Flat fare .vs. Distance-Based Fare<br />

For Corridor I from Block M to Kota, three different distance based fare systems were<br />

tested.<br />

- With a minimum fare of Rp2000 + Rp50 per kilometer<br />

- With a minimum fare of Rp1500 + Rp100 per kilometer<br />

- With a minimum fare of Rp1000 + Rp160 per kilometer<br />

Final Recommendations <strong>for</strong> <strong>TransJakarta</strong>, p. 65

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