Civil Engineering and Architecture 7(3A): 7-13, 2019 http://www.hrpub.org DOI: 10.13189/cea.2019.071302 System Dynamics Perspective of the Apps-based Transportation Ecosystem Iqbal Yulizar Mukti * , Yudha Prambudia Department of Industrial Engineering, Widyatama University, Indonesia Copyright©2019 by authors, all rights reserved. Authors agree that this article remains permanently open access under the terms of the Creative Commons Attribution License 4.0 International License Abstract Along with the development of ICT, transportation domain in Jakarta is evolving. The blooming of apps-based transportation has become an interesting alternative transportation mode for the citizens. This mode of transportation is diverting the usage of single occupancy travel to a more occupancy travel, such that it is expected to give positive contributions in reducing the traffic congestion. In this regard, policy intervention to the apps-based transportation ecosystem is being implemented by the government to ensure the conducive situation with the other transportation mode. This study provides an analysis of the policy intervention impact to the traffic congestion in Jakarta. A simulation model capturing the dynamic of the apps-based transportation ecosystem is developed using system dynamic approach. The main aspects considered in the model are including the usage of apps-based transportation, the traffic congestion, and the number of vehicles on the road. The simulation of the model is conducted based on four scenarios of policy intervention, namely, empowering, control, limited, and block. By using the data that are relevant to the situation in Jakarta, the simulation result shows that the traffic congestion level will significantly decline when the policy related to the apps-based transportation is supportive. Keywords Apps-based Transportation, Traffic Congestion, Simulation, System Dynamics 1. Introduction Traffic congestion is one of the major transportation problems in most of the large cities in the world. According to the research, traffic congestion has significant negative influences on the world’s economy and energy. It calculated that the economical lost due to the traffic congestion is reached $160 billion in the US and €200 billion in Europe. In energy perspective, 0.4747 gallons of fuel were wasted in every hour of the traffic congestion. Further, the traffic congestion impacts to the loss of 1.9 billion gallons of fuel worldwide. In particular, INRIX Research ranked Indonesia as the second most congested country in the world. Specifically, as the capital of Indonesia, Jakarta is in the third position in the world ranking of the most congested city. In Jakarta, traffic congestion is negatively affecting the productivity and overall living quality of the citizens. In economical perspective, in 2002, it was estimated that $550 million was wasted because of the traffic congestion in Jakarta. Aligned with the development of ICT, transportation service in Jakarta is in evolving. It is significantly shown by the blooming of application-based (apps-based) transportation, like Go-Jek, Uber, and Grab. These apps-based transportations, facilitates vehicle owner to become a driver and facilitate people to request a ride as a passenger through the mobile apps. Using the mobile apps, a passenger pointed the origin and the destination of the trip. On the other hand, a driver can decide to pick up and deliver the passenger. Based on the travel distance and the traffic condition, the travel fee will be calculated automatically by the apps. In 2016, the total number of users of apps-based transportation in Indonesia reached 5.28 million. The number is expected continue to rise with 16% annual growth rate and reach 12.4 million users in 2022 (Statista, 2017). The users prefer to use these apps-based services dues to its convenient and less expensive compare to the traditional taxis. Based on published data, in average the travel cost using apps-based transportation services is around 70% of the travel cost using traditional taxis or private cars. In the transportation ecosystem perspective, the usage of apps-based transportation can improve the efficiency of personal transportation vehicles, such that it is expected to contribute in reducing the traffic congestion (Agatz, Erera, Savelsbergh, & Wang, 2011). This is because the apps-based transportation can divert the trips made in private single occupancy cars or taxis, with more occupancy (Li, Hong, & Zhang, An empirical analysis of on-demand ride-sharing and traffic congestion, 2017). In CITE THIS PAPER [1] Iqbal Yulizar Mukti , Yudha Prambudia , "System Dynamics Perspective of the Apps-based Transportation Ecosystem," Civil Engineering and Architecture, Vol. 7, No. 3A, pp. 7 - 13, 2019. DOI: 10.13189/cea.2019.071302.