Subsidizing public transportation

Subsidizing public transportation

From Media Indonesia

The increase of transportation fares and the proposal that the
government should subsidize public transportation are still on
the news.

As far as subsidizing is concerned, we have to consider the
following things:

1. In many developed countries, including those which have
high income per capita like Singapore and Germany, the government
subsidizes public transportation. This is done because the
government has the capability to provide social benefits to its
people.

2. In countries where subsidies are made available, public
vehicles are owned and directly managed by the central or local
government. Whereas in Jakarta, public transport vehicles are
owned and managed by the private sector. And what is deplorable
is that not all owners of the transportation are members of Land
Transport Owners Association. It is even worse that there are
loose groups operating public transportation services like
illegal taxis, ojek (motor-cycle taxis), etc.

If the government is to subsidize public transport, several
questions arise: How will subsidies be channeled? Who is entitled
to receive a subsidy? And how will the establishment of a
fictitious transportation service be checked? If subsidies are
channeled through the Land Transport Owners Association, what
about those which are non-members?

SOELAIMAN NILAM

Jakarta