Bus Industry Slumps: Passenger Numbers Fall, New Fleet Investment Stalled

The intercity bus (PO) industry continues to face challenges in the first half of 2026. Minimal growth in passenger numbers has led business operators to delay the purchase of new fleets and instead focus on rejuvenating and repairing existing buses. The Indonesian Young Bus Entrepreneurs Association (IPOMI) assesses that the business climate in the first semester of 2026 remains discouraging. Even during the 2026 Lebaran transport period, the number of passengers did not experience a significant surge compared to the previous year. IPOMI Chairman Kurnia Lesani Adnan stated that these conditions have caused most bus companies to hold back on investing in new vehicles. “The first semester of 2026 was bleak. Passenger numbers did not spike significantly, including during the 2026 Lebaran period, which actually declined compared to Lebaran 2025. Because of this, we are holding back on investing in new vehicles; we are only repairing existing units or fleets,” he told KONTAN on Friday (10/7/2026). He added that these companies are still in a business development phase, so their sustainability can only be assessed in the coming years. “The PO companies that are expanding are relatively new companies. This indication cannot be used as a benchmark because they have just entered the market and still need to develop their business routes. It will be seen in the next five years whether they continue to grow or decline. Many new companies were expansive after Covid, but have now disappeared,” he said. Furthermore, the purchase of new fleets currently undertaken by bus companies is more aimed at replacing old units rather than expanding business capacity. “The purchase of new units this year is only for the rejuvenation needs of existing companies,” he stated. According to Kurnia, this step is taken to maintain service quality for passengers while preserving the passenger load factor. “Looking at the current atmosphere towards the end of the year, it remains bleak. For existing companies, one concern is the unresolved fuel supply issue, which has become a drama in the field, while there has been no resolution effort from the government,” he concluded.