Jakarta, Indonesia Sentinel — The Indonesian government has announced a sharp reduction in the budget allocated for urban mass transit subsidies in 2025, sparking criticism amidst growing public reliance on affordable public transport. The Ministry of Transportation revealed that funding for the “Buy the Service” (BTS) program, which subsidizes urban bus services, will be reduced to IDR 177.49 billion in 2025—a significant drop from IDR 437.89 billion in 2024.
Critics Voice Concerns of Indonesia Cuts Public Transport Subsidy
The drastic budget cut has drawn sharp criticism from transportation experts and advocacy groups. Tory Damantoro, Chairman of the Indonesian Transportation Society (MTI), expressed concern over the decision, labeling it a contradiction to campaign promises of affordable public transportation.
“MTI is deeply concerned about this policy, which starkly contrasts with the president’s pledge to provide affordable public transportation for all,” Damantoro said on Wednesday, January 15, 2025.
Public policy analyst Agus Pambagio called the budget cut a sign of disconnect between presidential promises and fiscal policy. “It’s disappointing to see such a gap between campaign commitments and the actual allocation in the state budget,” he said.
Transportation expert Djoko Setijowarno emphasized the need for a systematic and structured approach to improve Indonesia’s public transit system.
“The government should be focusing on enhancing the BTS program, which has already been initiated, rather than cutting its budget,” he said.
Struggles with Public Transit
Indonesia’s urban public transportation system has long fallen short of public expectations, leading many residents to rely on private vehicles. Darmaningtyas, another transportation expert, pointed out that limited and unreliable transit options force many to use motorcycles for their daily commute.
“This isn’t a choice; it’s a necessity because there’s no viable public transit alternative,” he said.
Statistics from Indonesia’s Central Bureau of Statistics (BPS) reveal that transportation costs consume 30-40% of the income of urban lower-middle-class households. According to Danang Parikesit, this situation creates a potential “poverty trap” for urban residents burdened by high transportation costs.
Urbanization and Rising Demand
Indonesia’s urban population currently accounts for 56% of the total, and the National Development Planning Agency (Bappenas) predicts this figure will rise to 70% by 2030. The growing urban population highlights the critical need for high-capacity, efficient public transportation systems to support mobility in densely populated cities.
“Without adequate public transportation, urban poverty levels could worsen, and cities will struggle to maintain livability,” said Parikesit.
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A Missed Opportunity
The budget reduction comes at a time when Indonesia is striving to improve its public transit infrastructure to reduce traffic congestion and environmental impact. Experts argue that maintaining or even increasing subsidies would better align with national goals for sustainable urban development.
As Indonesia’s cities expand, the need for reliable, affordable mass transit becomes more pressing. Advocates hope the government will reconsider its budgetary priorities to ensure urban residents are not left stranded—both financially and physically.
(Becky)
