Willingness to Pay for Surabaya Mass Rapid Transit (SMART) Options

Mass Rapid Transit (MRT) is modern public transportation modes has been adopted in some the big cities. Many experts believe that MRT mode can reduce congestion, improve quality of life by pollution reductions and reduce fuel consumptions for private vehicles. Understanding the willingness to pay (WTP) for several design options for MRT is essential to be conducted for decision maker of MRT projects including the Surabaya Mass Rapid Transportation (SMART) project that will be built in Surabaya City-Indonesia on 2016. The objective of this research is a measuring the willingness to pay (WTP) for SMART options that consists Surotrem (tram mode) and Boyorail (MRT mode) in order support design attributes of Surotrem and Boyorail project. Willingness to pay (WTP) method using Random Utility Model (RUM) model is used to measure and analysis three options of SMART project. The model is calibrated by the collected data from direct surveys to 264 respondents at 31 regions in Surabaya City. Some findings of this study were reached by WTP method and statistical analysis. Firstly, Surabaya's people more prefer to choice transportation options for Boyorial and Surotrem that have more flexible attributes than the assumed based attributes. Secondly, the SMART project manager should pay attention for some transportation attributes such as inter-arrival operation hours for Surotrem. Finally, most of respondents more prefer to select transportation option 1 than option 2 and 3 for Surotrem and Boyorail.