Expert: Public transport development boosts regional economy

Tangerang (ANTARA) - Transport expert Piter Abdullah believes the development of integrated public transport infrastructure has a positive chain effect in improving public welfare, while simultaneously triggering new economic growth in various regions. “If we want to improve the welfare of our people, one way we can start is by providing good public transport, because that will greatly help them,” Piter said in a statement received in Tangerang, Banten, Friday. Piter, who also serves as Director of Policy and Programmes at the Prasasti Center for Policy Studies, stated that providing adequate mass transit facilities can be a strategic first step for regional governments to ease the cost of living for their citizens. For conditions in Jakarta, for example, he said residents must allocate 25 to 30 per cent of the provincial minimum wage of Rp5.7 million just to meet transportation needs. Based on data from the Central Statistics Agency (BPS), the majority of commuter workers in the Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek) area incur significant travel costs. According to Piter, the presence of comfortable and affordable mass transport will automatically cut these routine expenses, ultimately increasing people’s purchasing power. Beyond saving travel costs, he continued, the presence of transit points such as MRT or LRT stations has also proven to revitalise the Micro, Small, and Medium Enterprises (UMKM) sector in their vicinity. Piter further stressed that this positive impact must not be centred solely in Jakarta, but must be replicated by regional leaders across Indonesia through strong political commitment. To work around budget constraints in the regions, Piter suggested broader Government and Business Entity Partnership (KPBU) schemes, up to the issuance of regional bonds. Nevertheless, he cautioned about the importance of legal certainty to attract investors, given the risk of policy changes every time there is a change in regional leadership. “Looking at the chain effect, I am optimistic the impact will be huge. What we will change is not limited to matters related to transport itself, but it will transform the areas it passes through,” Piter said.