Contractual Governance of Indonesia Railway System - Case Study:Customer Satisfaction in Jabodetabek Area Vs Värmlandstrafik AB

University essay from Karlstads universitet/Karlstads universitet/Karlstads universitet/Karlstads universitetFakulteten för ekonomi, kommunikation och ITCentrum för tjänsteforskning


The growth of private motor vehicle grows rapidly each year have negative impact not only forthe extra contribution of air pollution but also to time wasting. That impact can lead todecreasing of people quality life. Public transportation is one of the solutions for the problem.Therefore, the shift from private motor vehicle user to public transportation, in other wordincreasing market share of public transportation, is necessary. One of the public transportationthat can attract more market share is railways. It has large capacity, high safety level, and freefrom traffic jam. Those characteristic makes railway as primary public transportation.Indonesian railways nowadays have lot of problems and receive many complaints from thepassenger. Train travel is still colored with the delay, limited well-condition vehicle, and uncleartrain travel information that often disadvantage passengers, and many of services offered werefailed to attract passengers. These conditions result in decreasing quality of services andinsufficient railways operation. This will be a barrier to Indonesian railways accomplishment inmaking it to be a reliable and sustainable transport mode. Therefore, to improve market shareand to improve the railway condition, it necessary to have contractual governance withstandard that can lead to costumer satisfaction and making the process improve therelationship between the stakeholders. This lead to the problem of what is the customersatisfaction factors in using railway as their transport, what service quality item that satisfiedthe passenger, and how contract can maintain the relationship between the stakeholders.Finding in this thesis consist of several point. First, from the customer satisfaction index, thecustomers of Jabodetabek commuter train are not satisfied with the service. Second, theanalysis discovered that there are four factors that have high correlation with overallsatisfaction. The four factors are equipment and facility, assurance, competency, and traveltime and appearance. The attributes is grouping into five SERVQUAL dimension. Fromregression analysis of SERVQUAL dimensions there are two service items that influence thecustomer satisfaction; assurances and tangibles. Third, from gap analysis there are gaps inservice process that need to be closed in order to deliver service quality which lead tocustomer satisfaction in railway operational. Fourth, from contract analysis can be concludedthat present condition PT.KAI as the operator cannot perform as it is stated in contract. Thiscan be influenced by many factors such as; the lack of infrastructure, the lack of vehicle,customer misbehavior, staff misbehavior and external factors. In delivering service qualitywhich can lead to customer satisfaction, it is recommended to improve the service that relatedto assurances and tangible items and to involves passengers in controlling and improvingrailway operational. The result expected from the improvement is the increase of overallperformance of railway operation which can lead to the increase customer satisfaction andmarket share. From side of contractual governance, the research discovered that there areproblem in contract clausal and relationship between DGR, PT. KAI and people as customer ofrailway service. The recommendation is to include customer complains in setting contractclausal that can make DGR, PT. KAI and people as customer in mutualism developingrelationship.

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