Expansion of Public Transport Urgent Amid Rising Fuel Prices

Indonesian Transport Society member Djoko Setijowarno is urging the government to accelerate the development of public transport across various regions. He considers the move urgent amid rising fuel prices and the weakening of the rupiah against the US dollar. Djoko believes that improving public transport can alter fuel consumption patterns in the transport sector, which remains dominated by private vehicles. According to data he presented, around 40 per cent of national fuel consumption is used by the transport sector. However, of that amount, 93 per cent is consumed by private vehicle users. “Meanwhile, the remainder is only enjoyed by freight transport at 4 per cent and public passenger transport at 3 per cent,” Djoko said in a written statement on Sunday, 14 June 2026. According to Djoko, the high consumption of fuel by private vehicles contributes to the size of the energy subsidy burden the government must bear. He explained that the fuel subsidy budget in the State Budget (APBN) is heavily influenced by three main factors: the Indonesian Crude Price (ICP), the rupiah exchange rate against the US dollar, and the volume of public consumption. The realisation of fuel subsidies has shown a fluctuating trend in recent years. In 2022, fuel subsidies soared to Rp 551.2 trillion. The figure then fell to Rp 375 trillion in 2023 and shrank to Rp 113.3 trillion in 2024. However, in 2025 subsidies rose again to Rp 394.3 trillion before being capped at Rp 210.1 trillion in 2026. Djoko believes that accelerating public transport programmes at the regional level is a strategic solution to reduce public dependence on private vehicles while maintaining the country’s fiscal sustainability. He said this effort is also in line with Indonesia’s target of becoming a developed nation by 2045. One indicator of a developed country, Djoko noted, is the availability of a reliable and integrated public transport system. “With around 19 years remaining until 2045, Indonesia needs to learn from the success of Transjakarta, which has been operating for two decades. Therefore, the programme to accelerate public transport improvement in the regions needs to be implemented immediately,” he stated. However, Djoko continued, the condition of public transport in the regions is still far from ideal. Out of a total of 514 regional governments in Indonesia, only 45 regions, or about 9 per cent, have modernised their public transport systems. Moreover, only a small fraction of those are able to operate independently. Djoko noted that there are still two regions where public transport service operations depend on the state budget (APBN). These two cities are Balikpapan, through the Balikpapan City Trans service, and Manado, with Trans Manado. According to Djoko, the benefits of good public transport are not only felt in the form of easier mobility but can also improve public welfare. He said the government could even provide cheap fares or free services for certain groups, such as schoolchildren, university students, labourers, teachers, the elderly, persons with disabilities, and low-income communities. “Ultimately, public transport is not merely a tool for mobilisation, but an economic safety net for the community,” Djoko said.