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