Contactless Toll Road Transaction Leads Provision Chaos

KONTAN.CO.ID -  JAKARTA. Contactless cashless transactions, or multi-lane free flow (MLFF) trial, on the Bali Mandara toll road on June 1, 2023, as a pilot project, has been canceled. The national implementation of MLFF, which is targeted to take place in December 2023, also has the potential to be delayed.

A number of problems with the implementation of MLFF, which was worked on by Roatex Ltd. Zrt., a Hungarian company that was the winner of the tender, have emerged. Internal conflicts within Roatex Ltd.'s subsidiary, PT Roatex Indonesia Toll System (RITS), are in the spotlight and slowly opening the veil of public curiosity.

Musfihin Dahlan, former President Director, and CEO of RITS, spoke frankly to the media crew some time ago in Jakarta. Musfihin said that the MLFF system trial in Bali was canceled because there were differences in views between RITS when he led it, and the main company (Roatex Ltd. Zrt.) and contractors in Hungary.

The reason, continued Musfihin, is that the Hungarian side does not agree that the MLFF system implemented is not or has not been adapted to the conditions that exist in Indonesia. The dispute between Musfihin and the Hungarian party ended with Musfihin's elimination from the RITS management chair.

Baca Juga: European Union Puts an End to Its Electricity Market Crisis Measures

Referring to data from the Ministry of Law and Human Rights, referring to the deed of the amendment passed on May 22, 2023, Musfihin's name is no longer listed as the number one person at RITS. Musfihin's position was replaced by Keszeg Attila, a Hungarian citizen. The following is a list of shareholders, commissioners, and directors of PT Roatex Indonesia Toll System (RITS).

Sources: Ministry of Law and Human Rights

Two KONTAN sources who are aware of this contactless transaction issue also revealed the same thing as Musfihin.KONTAN's sources said, the reason for the cancellation of the pilot project trial in Bali on June 1, 2023, yesterday was because the system readability rate was only 80%. "This means that the application of GNSS-based MLFF on Indonesian toll roads has failed, with a readability rate of only 80%," said KONTAN's source on Sunday (4/6).

With only 80% readability, it will be a problem for toll road operators or toll road investors. Because the remaining 20% that is not read by the system, will cause a dispute, who will pay?

"For BUJT (Toll Road Business Agency), the main thing is that the new system must be able to read 100%. Other tools can even read up to 99%," KONTAN's source explained.

KONTAN's source added that when it failed to be tested in 2022, the reason used as a shield at that time was that the system was difficult to read because of black car plates. A moment later, the vehicle plate was now white, but now it has failed again.

Baca Juga: Indonesia Inflation Returns to Central Bank Target Range in May

Toll road managers certainly do not want to be forced to swallow the failure of the system to read 20% of passing vehicles, thus burdening their financial performance. "We cannot give much time because we are tied to payments with creditors. This will make the income of toll road management companies uncertain," said another KONTAN source on Sunday (4/6).

For information, the value of toll transactions throughout Indonesia has reached Rp 24 trillion per year. If 20% of vehicles are not read by the system, there is a potential decrease in revenue of Rp 4.8 trillion per year.

The business facts of toll road management in Hungary and Indonesia are different. The Roatex system in Hungary runs smoothly because all toll roads there are controlled by the state. "While in Indonesia, the toll road has private involvement. This is the difference; the system must be discussed with us so that the transfer process goes to the toll road manager," added KONTAN's source.

KONTAN's source requested that the government (Ministry of PUPR) not rush to run this project if it is not 100%. Delaying is the most likely thing for the government to do until all issues are resolved. Moreover, said KONTAN's source, the current system, namely RFID/DSRC, can still record up to 99.9%, and this system is also used by Japan and France.

RFID (Radio Frequency Identification) is the use of radio devices with frequencies between 860 and 960 MHz to read RFID tag stickers as identity. This system is said to have a success rate of around 99.5%.

Baca Juga: OPEC+ Holds 'Difficult' Talks on Cuts and Quotas

Roatex finally opened up to dismiss any concerns. "The project is ongoing, with close liaison with BPJT and other relevant stakeholders. Of course, there is a slight delay in the schedule, but in a way, this is "normal" in large projects like this," explained the Director of PT Roatex Indonesia, Gyula Orosz, in a written statement in Jakarta on Tuesday (30/5).

Gyula Orosz's explanation was in response to a press conference held by Musfihin Dahlan. "Based on the decision of the shareholders' meeting, Musfihin no longer serves as President Director, and CEO of PT Roatex Indonesia Toll System. So Musfihin no longer has the capacity to speak on behalf of PT Roatex Indonesia Toll System," said Gyula.

The use of MLFF technology, said Gyula, has gone through an adaptation process to Indonesia's local environment and conditions. "We consider local conditions, but that is one of the problems where there are some individuals who do not want to accept Hungary's experience in this field, and in this technology," he said.

It all started with the tender process

The gap left by Roatex Ltd. Zrt.'s MLFF system now raises questions. How was the Raotex system studied before it was finally used as the basis for developing a contactless payment system in Indonesia?

In 2017, the Hungarian government offered a preliminary feasibility study of the MLFF project. The study was funded by the Hungarian Government and organized by Hungary's National Toll Payment Services (NTPS) Plc.

Until then, through the Minister of Public Works and Public Housing (PUPR) Determination Letter Number: PB.02.01-Mn/132 dated January 27, 2021, which determined Roatex to be the winner of the tender,

Baca Juga: OPEC+ Begins Meetings That May Agree Further Output Cuts

If the MLFF runs smoothly, RITS, as a subsidiary of Roatex, will collect US$ 80 million, or equivalent to Rp 1.2 trillion, as a pioneer service from the PUPR Ministry from the APBN budget.

KONTAN's sources said that initially all toll road managers, such as PT Jasa Marga Tbk (JSMR), PT Citra Marga Nusaphala Persada Tbk (CMNP), Astra Infra, PT Nusantara Infrastructure Tbk (META), and others, intended to participate in the tender for free flow transactions on toll roads. They realize that in the future, toll roads must be smoother, and there must be a new system to realize this.

"It's just that, since the tender, there is a requirement to be connected to a satellite. This makes all toll road investors retreat. We suspect Roatex's presence seems to have been set from the start," said KONTAN's source. BUJT follows what the government (Ministry of PUPR/Ministry of Transportation) wants.

Until now, the toll road organizers have never been able to meet Roatex. "Roatex always argues that they are dealing with the state, not with BUJT or toll road managers," KONTAN's source concluded.