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Indonesia Pushes Mass Transit to Cut Fuel Subsidy Costs

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The Indonesian Ministry of Transportation is advocating for the enhancement of urban mass transit systems to reduce fuel subsidy expenses, while also alleviating traffic jams, decreasing pollution, and lowering commuting costs.

Aan Suhanan, the Director General of Land Transportation at the ministry, stated in Jakarta that transportation costs account for 30 to 40 percent of individuals' income.

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"This sector also accounts for 90 percent of the Rp300 trillion (around US$16.7 billion) annual fuel subsidy," he adds. 

He claims that this imbalance causes problems, including extended commute durations and financial setbacks from congestion, air pollution, and obstacles restricting public access to jobs and education.

To address these issues, the government is persistently enhancing urban mass transportation systems in 20 key cities, following the 2025–2029 National Medium-Term Development Plan (RPJMN).

He mentioned that the initiative intends to reduce travel durations, enhance accessibility, and optimize urban regions to act as hubs for economic development.

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To aid regional transportation digitization initiatives, the Ministry of Transportation is offering the Mitra Darat application to assist operators in rapidly enhancing service quality via measurable performance monitoring.

"Developing urban mass transit requires integrated planning, joint funding between central and regional governments, and robust governance. This is expected to create a more sustainable, equitable, and efficient transportation system," Suhanan says.

Additional support methods involve a digital checker app for overseeing adherence to minimum service standards by bus operators, along with a checker web portal for monitoring and assessing compliance performance.

 

The Ministry of Transportation acknowledged the dedication of regional governments, such as the Batam City Government, which has enhanced the Trans Batam bus rapid transit (BRT) service by increasing its fleet in 2026.

Suhanan highlighted that enhancing public transport services through BRT development is an essential measure for promoting effective public mobility.

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“Providing efficient public transportation can reduce the financial burden on communities caused by high commuting costs and congestion, while also serving as an effort to prevent an energy crisis,” he says.

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