Governance Alignment and Local Government Authority in Urban Transport Programme Performance: Evidence from Indonesia’s Buy The Service (BTS) Programme

Abstract

This study investigates the governance determinants influencing the performance of Indonesia’s Buy The Service (BTS) urban transport programme and its implications for sustainable mobility and environmental planning. Using a mixed-methods design that integrates Partial Least Squares Structural Equation Modelling (PLS-SEM) with qualitative institutional analysis, the study examines how Policy Alignment, Institutional Capacity, Coordination, Regulatory Design, Political Commitment, Public Participation, and Resistance to Change shape Local Government Authority and, subsequently, BTS performance. The results show that Local Government Authority is the strongest predictor of BTS outcomes (β = 0.789; R² = 0.706), underscoring the importance of coherent mandates, regulatory power, and coordinated planning in delivering effective public transport services. Resistance to Change demonstrates a significant negative influence, reflecting broader political economy constraints that undermine institutional coherence and programme implementation. Qualitative findings further reveal that governance-driven improvements contribute to perceived environmental benefits, including reduced congestion, emissions, and private vehicle dependence, linking BTS performance to broader sustainable development objectives. The study offers important policy implications by highlighting the need for stronger cross-level policy alignment, enhanced regulatory authority for local governments, institutionalized coordination mechanisms, and participatory strategies to manage stakeholder resistance. The findings also extend theoretical discourse by identifying authority as a central mediating mechanism within multi-level governance frameworks. Limitations related to perceived environmental measures and sample coverage suggest opportunities for future research incorporating longitudinal designs, direct environmental impact data, and comparative analyses across urban contexts.