Expert: Public transport development boosts regional economy

If we want to improve the welfare of our people, one way to start is by providing good public transport, as it will be immensely helpful to them.

Tangerang (ANTARA) - Transport expert Piter Abdullah believes that the development of integrated public transport infrastructure has a positive ripple effect on increasing community welfare, while simultaneously triggering new economic growth in various regions.

“If we want to improve the welfare of our people, one way to start is by providing good public transport, as it will be immensely helpful to them,” said Piter in a statement received in Tangerang, Banten, on Friday.

Piter, who also serves as the 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 local governments to alleviate the living costs of their citizens.

Taking the situation in Jakarta as an example, he noted that 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 Bureau of Statistics (BPS), the majority of commuters in the Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek) area incur significant travel expenses.

According to Piter, the presence of comfortable and affordable mass transport will automatically reduce these routine expenditures, which ultimately increases public purchasing power.

In addition to saving travel costs, he continued, the presence of transit hubs such as Mass Rapid Transit (MRT) or Light Rail Transit (LGT) stations has also been proven to revitalise Micro, Small, and Medium Enterprises (MSMEs) in the surrounding areas.

Furthermore, Piter emphasised that these positive impacts should not be centred solely in Jakarta, but must be replicated by regional heads throughout Indonesia through strong political commitment.

To address regional budget constraints, Piter suggested a wider use of Public-Private Partnership (PPP) schemes, extending to the issuance of regional bonds.

However, he cautioned about the importance of legal certainty to attract investor interest, given the risks of policy changes occurring with every change in regional leadership.

“Looking at the ripple effect, I am optimistic that the impact will be enormous. The change we will bring is not limited to transport itself, but it will transform the regions it passes through,” said Piter.