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Indonesia is working to promote the non-cash transaction by replacing toll gate with e-toll. However, more than 20,000 people threatened by unemployment. From an economic perspective, how do you look at this problem? What decisions should you take?

Last Updated Oct 11, 2017

31 answers

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Radityo Rahadian
Industrial Engineering

As we know from this early october, Most of the toll gate are using the e-toll and offcourse it will effect the employement in this country. In one of toll gate there are 5 workers that usually work for the gate and as i know there are 3 shift per day for this job, and if the manual toll gate was totally erased, so what should they do?. it will increase the unemployement rate in this country and maybe effect for our economics side. beside that, when the local bank companies are solving this problems by seling a card which are unworth it to buy, for the exampe the price is 50.000 Rupiah but we only got 30.000 for the balance. is it too profitable for the local bank companies?  And I am Radityo Rahadian Totally disagree with this situation, beside the economics perspective, there are so many other problem for this situation. such as an error that happen at the gate and will make some heavy traffic. I'm here as university student, we only have a policy to thinking democratic and giving some suggestion for this problem to the development to giving another job in jasamarga with the same salary. Radityo Rahadian - Industrial Engineering International Program - 1706020976

Answered Oct 11, 2017

Generally speaking, we know that people in indonesia started using e-toll since early 2009. Even there are toll gates that uses the e-toll, people still prefer the regular toll gate because sometimes it was faster, or they didn't bring the card. As far as i concern, the government is to fast to changing the regular toll into the e-toll. There are so many people that don't ready for this so there will be problems for this project. Like when people have to buy the cards at the toll gate, or when the machine brokes, it will only bring the traffic jam to the toll road. Besides that, indonesia is one of the 5 countries with most citizen in it. So, why we have to use e- toll instead the regular toll if the queue and the flow speed is about the same? It will only make the unemploy people increase, then the criminalities, then the economic decreasing, and so on. Even though i really disagree with this policy, i will follow the government rules. Because i'm just a university student and not much that i can do. Demonstration? That's to much. Arkaan haq syah gusatyo - Industrial Engineering International Program - 1706020023

Answered Oct 11, 2017

I think this decision is not right, goverment should make this kind of desicion if our economical condition is good. Nowadays, there is still a lot of people who doesn't have any special skills. Finding a job that doesn't required any special skills like toll guard is difficult. Besides, sometimes there are some toll road users who forgot to bring their e-toll card and cause traffic. I think goverment should leave at least one toll gate that can be paid manually. Also, Jasamarga should put toll guard on the non-cash gate to solve technical problems and other problems like the lack of credit balance in people's e-toll card. As a college students i disagree with this decision all i can do is give my opinion. Ryda Tazkia - 1706020010 - Industrial Engineering 

Answered Oct 11, 2017

I think this regulation is good for Indonesia's future, this regulation is not really shocking knowing that e-toll transaction already been applied in several substation since 2009. Indonesians need to be disciplined and appreciate government's regulatory that leads to Indonesia's advancement. Using e-toll card is not hard knowing that everybody can top it up in grocery shops such as Indomaret and Alfamart, and it's even better if the government provide the top up service in each substation so then everybody would just have to preapre an e-toll or any e-money card and decreasing the lack of time if the credit balance is not enough. And it would be better that there's still one manual substation for anticipating things that could happen like if someone forgot to bring their card. And for all the unemployments, i think that's the responsibility of the goverment and Jasa Marga to allocate them into other divisions and make sure that they would have a better job. 

source: Mulai Oktober, Bayar Tol Wajib dengan "e-Toll"? - Kompas.com

Audrey Maharani Bhinuko - Industrial Engineering International Program - 1706019785

Answered Oct 11, 2017
Mochamad Racka Nugroho Maulana Putra
Mahasiswa Fakultas Teknik UI 2017

Before the government made the decision, they have a reason why they decide that and know how to resolve the problem that came up from the decision the government made. The government decide to use non-cash transaction because they want to reduce the money that circulating at society. They want to reduce it in hope to stop the inflation and get deflation. But, if the unemployment person in Indonesia still high, the inflation will still getting higher. The 20000 people maybe threatened, but i think the government already know what the problem will came up and i think they already know the solution. Like give education to the unployment, so they have a certain skill to get another job. So i support the government idea. Mochamad Racka Nugroho-1706021404-Industrial Engineering

Answered Oct 11, 2017

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source: tribunnews

 

First of all, I'd like to appreciate the hardwork of government who have provided e-toll system in Indonesia. This, seen from engineering point of view, very effective and efficient. From a industrial engineering student seeking economic perspective of this issue with scientific approach, I'd like to see this as a technology breakthrough for the development in Indonesia and need to be applied anywhere. Why? Machines make everything economically efficient. The cost of having machines instead of humans will advantage the government and Jasa Marga. This is an opportunity cost for them instead of having employees working three shifts 24/7. Seeing from the advantages provided by e-toll (faster lane in GTO, no salary needed, etc), it is profitable.

 

On the employee's perspective, it is indeed a disadvantage to be unemployed. However, seeing from the positive side, they can improve their skill so they will seek a better job that can't be substituted by machiens.

 

On the unemployment aspect, even though it can't be equally substituted with more than 20,000 people threatened by unemployment, this e-toll system can create some new jobs and demands for jobs like technician, observers, e-toll cards suppliers, and IU(In-Board Unit) suppliers.

 

Then there is a problem, "sometimes people forget to bring the cards, the GTO lane is slowing down because of the slackness of Indonesian people, etc." How to tackle this problem? If I could make decisions, then I will generalize the idea of e-pass and IU (In-Board Unit) for every car.

 

source: merdeka.com

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This will improve the effectiveness and efficiency of GTO.

 

Febe Monika

1706065280

Industrial Engineering

Answered Oct 11, 2017

We know that since October 2017, the payment method of highway is in transition from manual method (by person) to electronic based system (e-toll).  I totally agree to continue promote the non-cash transaction by replacing toll gate with e-toll even if more than 20.000 people are threatened by unployment because we need to understand the global affairs and follow it so we will not left behind.  We know that this e-toll system have a lot of advantages for example like it can fasten the transaction so it will reduce the traffic.  Also, it is way more practical than using cash because we don't need to wait for the change so we can save a lot of time.  I believe that the government already consider many factor before implementing this system and I believe this is the best for the improvement of Indonesia even if we have to sacrifice something or in economic perspective we call it an opportunity cost.  However, this e-toll system still need a lot of improvement like provide a selling booth for e-toll card because not all people already have the e-toll card.  Also, we need some people at each machine to watch the situation if there is any problem.  This can also reduce the people that are threatened by unemployment.

 

Andri Prabowo

1706065186

Industrial Engineering

Answered Oct 11, 2017

First and foremost, we should all agree that every decision that is made has its ups and downs, and there are many people that are working hard to minimize those downs. Rigth now, the Indonesian Trade Union Confederation (KSPI) is working together with ASPEK Indonesia in an effort to demand to stop the building of e toll gates to the president of Indonesia because they agree that e toll gates would cause massive unemploynment across the country. However, if we look at the problem at an international scale, a majority of the country's in ASEAN have already applied the system of cashless transaction in toll roads. For example, the philipines have a system where people could pay for tolls with a sensor in their car in a lot of areas, similar to the OBU (On Board Unit) that is still only available in a few toll gates. If Indonesia haven't apply the system of cashless transaction until now, we will fall behind in technology with a lot of countries as cashless transactions simplify and accelarate the flow of money through the economy. Data from Bank Indonesia shows that in 2010, there is at least transactions worth Rp174,3 Trillion per day of cash transactions, while only Rp8,8 Trillion of them are cashless or electronic money. This shows that the economic flow in Indonesia can be increased and sped up with the implementation of cashless transactions, starting from e toll cards. I believe that it is necessary to enforce the use of e toll cards, as it will benefit our economy greatly in the future. As for the workers in the toll booths, I believe that what we need to do is to find a job replacement for them slowly. I believe that replacing the toll booths with machines one by one in different dates is a great decision because it allows workers to slowly find replacement jobs.

*Source is in the comments

Answered Oct 11, 2017

Stated by The Head of Highways and Traffic Management, Herry Trisaputra Zuna, there won't be termination of employment, instead, they will be assigned in a part that still need much improvement, like maintanance and the office. Meaning that this policy has gone through a lot of thoughts and consideration. By relocating them, they will be given a training that will develop them in any skills and knowledge that are needed by the department. That also means the government are improving the standard of our human resources.This policy also improving the efficiency of the usage of highways. E toll makes transaction much faster and it reduce traffic. Though it is a big decision to relocate a lot of employees and takes a lot of money for the machines installment, this decision is needed if we wanted to make a change, a real improvement in our traffic problems. Therefore without a big step there will be no change. 

Cyrilla Almaida-170601934-Industrial Engineering

 

Answered Oct 11, 2017

In my opinion, this is the goverment ambition to make Indonesia as casless society. Like other countries, who already took steps to realize the cashless society, the goverment tried to follow their steps, one of them is to replace physical payment to e-toll. Our closest neighbour Singapore, has 61% estimated share of payments done by non-cash methods.

First, What is the benefit of being a cashless society?

  • Tax Evasion: When all payments are made electronically, they can be easily audited. This would be a great problem to money launderers and tax evaders
  • Reduction in Crime: By going cashless, as there will be less cash in circulation, criminal activities like Real estate fraud, Smuggling, Fake currency, Terrorist activities etc will be greatly reduced.
  • Security and Convenience: In Sweden, electronic payment advocates claim that there has been less crime reported as there is no cash to steal at banks and ATM’s. In addition to security, cashless transactions in future will be seamless and convenient for customers with no delays and queues.
  • Convenience: The ease of conducting financial transactions is probably the biggest motivator to go digital. You will no longer need to carry wads of cash or even queue up for ATM withdrawals.
  • Increased Public Spending: Studies show that people are more likely to forego small purchases when paying in cash because they don’t have the cash on them or they don’t want to break large bills. Alternatively, when people use stored value cards, they are more likely to spend on small “afterthought” purchases, such as buying a pack of gum at a gas station. Such increased public spending could provide a boost to the economy.
What is the benefit of e-toll?
  • It will reduced traffic: The time waiting for a change is eliminated
  • Better money absorption: everything can be controlled rather than using physical money
  • Convenience: the toll user doesn't have to prepare money rather than just tap the card or using the on board unit

What goverment should to minimize the unemployment because of e-toll?

  • They should training the staff and place them to other department such as maintanance, security, traffic controller, etc. Because most of toll road is still lacking of these aspects.
What's missing about e-toll?
  • The goverment should put more e-toll card refill machine, rather than depending on mini market/kioks and ATMs.
  • The goverment should eliminate the e-toll card refill charge because it is not fair, they should make a regulation so the citizen doesn't feel that they are being robbed.
  • The goverment should allow more banks participating e-toll.
Sources:
 
Juandito Berel Irianto/ Industrial Engineering/ 1706065330

Answered Oct 11, 2017

From an economic perspective, I can conclude that the opportunity cost for the electrification of the toll gate system is the laying off of more than twenty thousand workers. However, the benefit to be obtained from this is the smoother flow of traffic with minimal congestions at the toll gates. For decades, toll gates have been a source of congestion in highway traffic. With the electric metering system, I believe the population of Indonesia can benefit much from this, although it will take some time for the people to adapt. Both private and public banks have taken measures to adapt to the automation of the toll gates, such as the application of their cashless cards on the toll gates, so that highway users will not have to spend more on making new cards just for the highways.

The automation of toll gates is just one way of Indonesia to adapt to the advancements of technology. Countries like Singapore, with their electronic road pricing (ERP) system, have automated their highways earlier than Indonesia, and they have received many benefits from the automation. The time has finally come to pass for Indonesia to advance from older methods.

Concerning the twenty thousand faced with unemployment, the authorities of the Indonesia Highway Corporation, or Jasamarga, should make sure that they have other positions open for them. The automation of the system still leaves some positions open for the workers, such as the maintenance of the automated toll booths or the administration for making new toll cards at the gates. Although not all toll gates in Indonesia will be fully automated and a small percentage will still be manually-operated, the majority of the workers who used to man the toll gates should be repositioned for other duties. Although Jasamarga has declared that they will not reduce their work force, measures have to be taken so that these twenty thousand workers will be able to work well in their relocated positions. When done wisely, the repositioning of twenty thousand workers can generate more income for the company and the country, but should the workers not perform well in their new jobs or be able to adapt to their new jobs, unemployment could be a threat for the company.

Jonathan Farrel K - 1706065324

https://www.cnnindonesia.com/ekonomi/20170919125932-92-242677/transaksi-e-toll-tak-bikin-jasa-marga-pangkas-jumlah-petugas/

Answered Oct 11, 2017

This move towards automation is a crucial one to push Indonesia towards a more modern society. We must push our people to adapt to the advancement of technology in order to stimulate innovation and increase efficiency, which gives room for more potential in our economy. Looking forward, we should see this problem as a liberation of the 20,000 members of the workforce that can now fulfill their potentials by doing more complex work than handling tollway transactions. It is a good thing that now 20,000 people are freed from a repetitive, minimum-wage job that can be done by machines. That said, the question now is: how can we help these people to maximize their potentials as part of the economy? As we replace low-skill low-wage jobs with machines, we must make sure our people can compete in jobs that machines cannot fully replace: arts, research and academic, medicine, engineering, etc. which requires higher education. 

This problem of tollway automation symbolizes Indonesia's shift as a developing country towards a more economically developed one on a bigger scale, along with the expansion of our creative economy. Hence, the government must encourage people to get higher education and learn skills that are needed to develop this modern economy. In the case of the tollway automation, one solution would be giving training to ex-tollway gate cashiers in maintenance and engineering of tollway systems. Education and skills such as these can increase competitiveness of our technology and research economy, which means stimulation of innovations and creations as well as expansions of such service sector industries.

Answered Oct 11, 2017

I believe this could be a big step foward for Indonesia, or maybe still Jabodetabek at the moment. The e-toll card allows us to be more convenient. You will no longer need to carry wads of cash, which is safer. This decreases the queue line, because each car takes approximately the same time without waiting long for your change as usual. 

However this could be a huge lost for the 20.000 employees. Indonesia is currently at a condition where we lack job opportunities.  The unemployment will influence the economical state of Indonesia. People who work get payback in the form of wages / salary. Wages / salary before reaching the hands of recipients of income tax withheld first. This tax is one of the sources of state income so that if not many people work the state income from income tax revenue tends to decrease. 

Dara Abiyya Setiadi

1706065242

Industrial Engineering

Answered Oct 11, 2017

In my opinion, by replacing toll gate with e-toll will increase the unployment rate in Indonesia, which will also effect economic situation. It will surely make the whole process of transaction in the toll is more effective, but as we know machine can also make errors, and usually need an expert to solve the problems. So, i think the best way to solve this problem is to put e-toll in the places that more likely to get traffic jam.And for the former employees, we can train them to become mechanics for e-toll gates.

Nabila Puspa-1706065394- Industrial Engineering

Answered Oct 11, 2017

By October 2017, the government made a policy of the usage of e-toll card for every toll road entrance. this policy is really convenience and in my opinion is effective to solve the problem of traffic jam in toll entrance.From the economic perspective, it is actually a great stepping stone for the economic in indonesia. by minimizing the use of cash money, people tend to be wiser on spending their money. however, the fact that this policy causes more than 20.00 people threatened by unemployment, this can make the GDP to fall. even though it is not significant, it effect the employee with a lot of pressure. the decision that i would take is allocating the threatened employee to other sector such as maintenance or they can be educate for other sector that requires more resource such as the engineering sector.

Mohammad Naufal Archie_1706065356_Industrial Engineering

Answered Oct 11, 2017

A new improvement is going to be applied in Indonesia. With the alteration from cash toll payment to non-cash payment using e-money card, it will bring benefits to many prespective. In the economy prespective, Indonesia will be improved since we start to be using non-cash payments in our daily life. The use of non-cash is essential because it can reduce the use of fake money and also every purchase activity is recorded since receipts are made during the purchase. In the employement's prespective, it is actually a disadvantage since the former worker will be unemployed. I'm pretty sure the goverment and Jasa Marga has thought about this problem before they actually agreed to have this kind of improvement. One of the solution I can give to this problem is for the goverment to held a mass training for the soon-to-be unempoleyed workers. This way, they will have special experties so they won't be unemployed.

Answered Oct 11, 2017

Since October 2017, The payment of toll gate is change from cash transaction to e-toll. I think it is good that Indonesia is working to promote the noncash transaction because first, it is the Finalization program from the government called "Gerakan Nasional Non-Tunai" (GNNT). secondly, the use of e-toll is going to be effective because you don't need to wait for the change anymore. We see that in the past, before you"re going to a toll gate, there is always traffic jam that causes by waiting for the change. Thirdly, Indonesia wants to keep pace with the other country which they already started this system. But because of this e toll system, the employee of the toll gate is threatened by unemployment. What I think is the employee of the toll gate should be guaranteed by Jasamarga. Jasamarga needs to give the employee another job such as selling the toll booth or become staff of jasamarga or even watching what happened on the toll. And what i saw on the news that Jasamarga guaranteed their employee to not get PHK. They said that they will give them another job and if they want more, Jasamarga will give the education to make them feel more prepared.

Fahreza Ananda F

1706065261

industrial engineering

Answered Oct 11, 2017
almer .
Suka ngegambar.

The date is October 2017, the transactions of the long highways are not conducted by humans anymore. The human counterparts are changed into robots with a box and, E-tolls. With this, the cashier of the toll booths would not be assigned anymore to take and give the money out to highway users. Parallel to this change, unemployment will increase because of the workers that is no longer needed in service. Which means, it would literally "take a toll" on the workers, 20,000 to be exact.

From an economic and capitalistic prespective, this method of changing human workers into technological advances would result in good profit. Because, if using the humans as toll operator would cost: salary, health insurances, monthly and annual leaves, etc. If compared to a machine to do the work, it would only cost monthly maintenance. At first it would cost a much because to buy the machine itself cost a fortune. But, after a few years, or even months it would take back profit. So, to compare a human worker needs a bit more than a robotic operator meaning economical profit; but with the sacrifice of 20,000 workers being unemployed.

My suggestion regarding the 20,000 workers that may become unemployed is that the government should not let the workers' work ethics and abilities of toll booth operating. If the government would take part in the project, it is better if the government use their capabilites and convert them into toll-related jobs; such as office workers for the toll company, toll mainteners, toll patrol, etc. With this, the power and abilities of the workers would not go to waste and become productive again, regardless the change in their jobs.

To conclude, this automation step is necessary to increase the income amount, speed, and acceleration of the work-flow of the massive economic scale of Indonesia. Also, human workers should not be unemployed as if they did not have any abilities; convert them into their previous ability related jobs.

Answered Oct 11, 2017
akmal shidqi addauly
Mahasiswa Fakultas Teknik UI 2017

Goverment plan to modernize our society is a good thing to the ecomic life of our country, because modern country tend to be more effective in many aspect and it will benefit the ecomics of the country. Investor will happily come to a country that have potential and planning to be a modern country such as Indonesia. The first step to increase the economic transaction and modernize a country is create an infrastructure or a system that satisfy the economic process itself. This E-Toll system is one of  project that will help us in economic transaction in our daily life

From economic perspective, this move will bring many negative and positive effect. First, we can analyze the opportunity cost. The opportunity cost that happen is :

  • More than 20.000 people will become jobless
  • Time to build the machine for E-Toll
  • Cost to buy the machine
  • Require more time to implement the system
  • Adaptation
Goverment should consider this opportunity cost before they implement this cashless system, because this thing will affect the economic process in Indonesia. Second, Analyze the advantage when this system is implemented in our daily life. 
  • This system will reduce the traffic
  • Simplify our transaction
  • This system will modernize Indonesia transaction process
So goverment should consider the opportunity cost and the benefit of this system before implement it on our daily life
 
Akmal Shidqi Ad-Dauly / Industrial Engineering / 1706020906

Answered Oct 11, 2017

From the problem that given, I think that decision to replace the gate with e-Toll is a good idea because it will minimize the transaction time, It is maximizing the use of technology that already improved in this era, so basically it will make the transaction more effective &efficient. Based on the comparative advantage theory, e-Toll transaction has more advantages than the previous one. But it's not a wise decision if the workers being fired and left unemployed, because they need their salary to live and it's not that simple to find a new job and it will decrease the welfare of our country. If I were the decision maker, I would accept that idea but I will open the new work field for them, and make the training first to improve their skill so there's no one to sacrifice. 

Answered Oct 11, 2017