Telkom Indonesia - Commuter Vending Machine as a New Digital Point of Sales

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Name of Organization / Company: Telkom Indonesia, Jakarta, Indonesia
Category: J01 - J02 Award for Innovation in Customer Service > J01. Award for the Innovative Use of Technology in Customer Service > Telecommunications Industries

Entry Title: Commuter Vending Machine as a New Digital Point of Sales


Nowadays, Indonesian government has proclaimed the intermodal integration concept as a long-term solution for traffic congestion handling by switching the private vehicle users into public transportation users.

PT Kereta Commuter Indonesia (KCI) as the commuter train operator serving Greater Jakarta (include Jakarta, Bogor, Depok, Tangerang and Bekasi area) has served 315.811.848 passengers during the year 2017, growing 8% from previous year. In 2018, the passenger numbers are targeted as 320.026.523 people (increased by 9,5% from 2017.

In 2017, there were 993.992 passengers riding KCI per day, 40% of which are of both multi-trip and daily-pass card users that make transactions in the counter daily. Characteristics of passangers who make cash payments are low income segment. They chose to make payments in cash rather than non-cash payment. They avoid to deposit some money on the use of cashless payment and they are only able to make single trip payments. These passangers group is growing significantly over the time and causes long queues in the ticket counters. This condition causes inconvenience to the users, and reduces the level of satisfaction of the commuter train user.

The addition of new ticket counters for cash payments is not possible due to space constraints within station and it will increase operating cost as well. The above conditions made KCI ask TELKOM to develop a ticket payment system.

Telkom proposes a new way of purchasing tickets using Commuter Vending Machine. Vending machine is an extension of the e-ticket system previously built by TELKOM for KCI. Existing system has enabled ticket payment at electronic gate by using card payment (issued by bank or KCI). The basic function of VMs allows KCI passengers to purchase travel tickets (single trip or multi trip) in cash from a machine. VM which integrated with e-ticket backend system will issue e-ticket suitable with the needs of passengers after making cash payment.

The VM has these distinctive features:

1. Recognize Rupiah as the Indonesian official currency
2. Accept both banknotes and coins as well as emitting change
3. Having attractive design equipped with a special key and anti-tamper censor
4. Supporting two languages: Bahasa Indonesia and English
5. Serving tickets sales, re-sales, refund, top up and fare adjustment.
6. Issue an alert on unauthorized access
7. Integrated with User Management, Cash Management, Card Management and Device Management systems utilized by KCI

For KCI, the VM implementation as a Digital Payment Channel, delivers these benefits:

1. Adding a new digital counter, which shorten queues and fasten transaction process
2. Reducing fine for passengers with insufficient balance or exiting a station which is not the designated destination
3. Reducing cash transaction and raise digital culture.
4. Minimalizing frauds caused by human error as well as cutting down operational cost in selling the tickets traditionally
5. A new media branding for KCI to promote their services

For customers, VM implementation has enhanced comfort and convenience within a station, shorten the queue and speed up ticket purchase and ultimately improve customer satisfaction and customer loyalty.

For TELKOM, Implementation of VM in year 2017 contributed revenues of IDR 35 billion. The expansion of VM implementation in the following year is expected to provide revenue of IDR 42 billion, including recurring income of Rp 7 billion annually.

In the future, the application of VM technology has the opportunity to be expanded in other public transportation modes such as bus, light traffic transport and mass rapid transportation.