Indonesian Political, Business & Finance News

Government to Provide 100 School Buses Next Year

| Source: CNBC Translated from Indonesian | Infrastructure
Government to Provide 100 School Buses Next Year
Image: CNBC

The Ministry of Transportation (Kemenhub) is preparing a budget of Rp5.15 trillion for the Directorate General of Land Transportation for 2027. This budget will be utilised for various land transport programmes, ranging from the development of mass public transport systems in Medan and Bandung to the procurement of 100 school bus units.

The Director General of Land Transportation, Aan Suhanan, stated that the 2027 budget ceiling has received an additional Rp843.07 billion from the previous indicative ceiling.

“At this budget ceiling stage, the Directorate General of Land Transportation has received a 2027 budget composition of Rp5.15 trillion. This is close to the 2025 budget,” said Aan during a hearing with Commission V of the House of Representatives (DPR RI) in the Parliament Complex, Jakarta, on Thursday (3/9/2026).

From the total ceiling, Rp3.86 trillion is allocated for connectivity infrastructure programmes, while Rp1.28 trillion is for management support programmes. One of the largest allocations is for land transport services, amounting to Rp1.76 trillion. This includes the development of mass public transport systems in two cities, Medan and Bandung, with a budget of Rp1.55 trillion, funded by foreign loans.

In addition to mass transport development, the Ministry of Transportation is also allocating funds to expand transport services to reach communities in various regions. One of the programmes receiving an increased budget is the procurement of school buses. In the indicative ceiling, the procurement was planned for 50 units, but following the budget increase, the number has risen to 100 school buses.

Aan noted that the additional budget for school bus procurement reached Rp44.7 billion. He explained that the Rp254.66 billion budget shift between Echelon 1 units will be used for road equipment (Rp154.18 billion), school bus procurement (Rp44.7 billion), and the payment of salaries for part-time PPP (Government Employees with Work Agreements), outsourcing staff, and office services (Rp55.77 billion). In detail, the procurement of 100 school buses has a budget ceiling of approximately Rp78.65 billion.

The Ministry is also preparing funds to ensure that transport services in underserved areas continue to operate. For pioneer road services, national strategic area transport, pioneer goods transport, and pioneer ferry transport, the government has prepared Rp684.12 billion for 605 services included in national priority programmes. This consists of 311 pioneer road transport routes, 245 pioneer ferry routes, 12 pioneer goods transport routes, and 37 national strategic area transport routes.

For overall land transport connectivity infrastructure, the Directorate General of Land Transportation has allocated Rp970.3 billion. This includes the completion of the Type A Terminal in Palopo, South Sulawesi, and the continued development of ferry ports in Bakit and Belinyu, Bangka Belitung, as well as Pulau Burung, Riau.

The Ministry of Transportation will also maintain urban transport services through the Buy The Service (BTS) scheme. In 2027, these services are prepared for six cities: Balikpapan, Manado, Bekasi, Depok, Pontianak, and Samarinda, with a budget of approximately Rp100.58 billion. Furthermore, the government has allocated Rp876.96 billion for land transport safety and security, covering road equipment installation, accident-prone area management, school safety zones, handling of Over Dimension Over Load (ODOL) vehicles, and vehicle ramp checks.

Additionally, Rp9.32 billion is allocated for the rehabilitation of terminals affected by disasters in three locations in Aceh, while other funds will be used for transport services during Eid, Christmas, and New Year, as well as terminal and port operations.

Aan stated that the additional Rp843.07 billion received by the Directorate General of Land Transportation comes from two sources: Rp588.4 billion from budget increases according to the Joint Letter of the Ministry of Finance and Bappenas, and Rp254.66 billion from budget shifts between Echelon I units. He expressed hope that these programmes would enhance safety and meet the public’s land transport needs in 2027.

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