Public Transport Tax Anomalies and the Threat of a National Mobility Crisis

Public transport should serve as the state’s primary instrument for maintaining economic productivity, social stability, and national energy resilience. However, in practice, Indonesia’s transport policies reveal major anomalies. At a time when the government seeks to shift the public towards public transport to reduce congestion, pollution, and dependence on private vehicles, the public transport sector is still burdened with various taxes and levies that keep vehicle operational costs (BOK) high. As a result, public transport fares remain difficult to lower, service quality does not develop optimally, and the public continues to rely on private vehicles. This anomaly occurs across nearly all transport modes: land, sea, and air. In the road transport sector, bus operators face vehicle and spare parts import taxes, Value Added Tax (PPN), Motor Vehicle Ownership Transfer Duty (BBNKB), Motor Vehicle Tax (PKB), fuel taxes, terminal levies, as well as vehicle testing fees and other licensing costs. In the shipping sector, ship operators must bear import taxes on components, PPN, port charges, and various other operational levies. Meanwhile, the aviation sector faces burdens from avtur taxes, aircraft spare parts taxes, navigation fees, airport charges, and other substantial fiscal components. When BOK is high, operators are forced to raise fares. When fares increase, the public shifts to private vehicles, particularly motorcycles. When private vehicle usage rises, congestion worsens, fuel consumption surges, pollution increases, and the state must again spend heavily on building new roads, flyovers, underpasses, or other congestion mitigation measures. Ironically, this occurs amid global geopolitical uncertainties and increasingly serious threats of an energy crisis. Conflicts in the Middle East, including the potential for prolonged war in the Strait of Hormuz, could trigger spikes in world oil prices at any time. The Strait of Hormuz is one of the world’s most strategic energy distribution routes. Even minor disruptions in the area could affect global oil prices, including fuel prices in Indonesia. For the transport sector, rising energy prices have profound and multi-layered impacts. Fuel is the dominant component in the operational cost structure of public transport. When fuel prices rise, operators face extraordinary cost pressures. In ideal conditions, operators could adjust fares. However, in Indonesia’s socio-economic reality, fare increases are often difficult due to limited public purchasing power. Consequently, transport operators will seek other ways to survive. This is where safety issues begin to be threatened. Many operators end up delaying vehicle maintenance, reducing spare parts quality, compressing fleet renewal schedules, or lowering service standards. In road transport, this can lead to increased accident risks due to suboptimal brakes, worn tyres, or vehicles unfit for operation. In the shipping sector, cost pressures can affect ship maintenance quality and maritime safety. In the aviation sector, rising energy costs also have the potential to strain airlines’ abilities to maintain operational efficiency and fleet sustainability.