Bandung City Government Prepares Rp56 Billion for BRT Public Service Obligation
The Bandung city government has prepared a budget of up to around Rp56 billion to support Bus Rapid Transit (BRT) operations through a Public Service Obligation (PSO) scheme. However, payment of the budget is still being withheld until there is a joint agreement on the mechanism and the amount of each region’s contribution.
Bandung Mayor Muhammad Farhan explained yesterday that the city government has allocated the PSO budget but has not yet paid it because it is still awaiting clarity on the billing calculation from the BRT operator as well as a joint agreement among the regional governments involved. “We have budgeted for it, but it is still being held. Because we want to know the joint agreement first. What the calculation looks like,” he said.
According to Farhan, operations categorised as part of BRT services have been running from 1 August to 31 August 2026 through the Metro Jabar Trans (MJT) service and feeders. The PSO bill is expected to be issued between 1 and 5 September 2026. Before the official bill is issued, the Bandung city government will discuss it with the Regional Legislative Council (DPRD) and the regional governments involved to ensure the cost calculation is acceptable to all parties.
A number of regional governments will be involved in financing the PSO, namely the West Java Provincial Government, Bandung City, Cimahi City, West Bandung Regency, Bandung Regency, and Sumedang Regency. “We have about 10 days to ensure that all the bills, the reconciliation of figures, are reasonable and accepted by everyone,” he explained.
Farhan said the PSO is a government contribution to support the operational costs of public transport. The budget is used, among other things, to finance driver salaries, fuel, vehicle maintenance, procurement, and other operational needs. “PSO is operational, various subsidies. So each of us contributes to operational subsidies. Salaries of drivers, fuel, maintenance, procurement, and so on,” he said.
The amount of budget prepared by the Bandung city government is in the range of Rp49 billion to Rp56 billion. However, Farhan stated that this figure is not yet the final amount to be paid because it is still awaiting the bill and the results of reconciliation.
The issue of PSO financing also needs to be viewed from the condition of BRT development on the ground. A number of impacts arising from the construction and operation of the BRT in Bandung City still require resolution, ranging from parking relocation to the impact on street vendors (PKL). “Because this construction alone has created many problems and they have not been resolved. Parking relocation, handling the impact on street vendors and others are also not finished,” he stressed.
Farhan believes these matters need to be part of the discussion so that public expectations of BRT services remain realistic. For information, the total BRT PSO requirement is estimated to reach around Rp200 billion per year. Of that total, Bandung City is estimated to receive a contribution share of almost 25 per cent. “The largest is certainly ours. Of the Rp200 billion per year, we get about almost 25 per cent now,” he concluded.