Indonesian Political, Business & Finance News

Traffic Accidents Impose Economic Burden of Rp 3 Trillion

| | Source: KOMPAS Translated from Indonesian | Economy
Traffic Accidents Impose Economic Burden of Rp 3 Trillion
Image: KOMPAS

JAKARTA, KOMPAS.com - Indonesia faces a serious issue regarding road safety that requires greater attention.

Based on 2025 data from the National Traffic Police Corps (Korlantas Polri), there were 158,508 traffic accident incidents recorded.

Chairman of the Supervisory Board of the Road Safety Association (RSA) Indonesia, Rio Octaviano, stated that traffic accidents not only impact loss of life but also create a significant economic burden.

“Besides loss of life, traffic accidents also have a substantial economic impact. Material losses are recorded at Rp 314 billion,” said Rio in an official statement on Wednesday (25/3/2026).

“However, after comprehensive data processing by RSA, including calculations for funeral costs, medical expenses, and loss of productivity, the total economic burden of traffic accidents in Indonesia is estimated to exceed Rp 3 trillion per year,” he added.

In addition, the direct costs borne by the public are not insignificant. According to RSA calculations, funeral costs for fatalities amount to around Rp 243 billion.

Medical costs for seriously injured victims are approximately Rp 386 billion, and for minor injuries around Rp 293 billion. In total, these costs exceed Rp 1.2 trillion.

“Beyond that, traffic accidents cause the loss of about 2.8 million workdays or more than 22 million working hours, which, when converted to economic value, equates to potential production losses of around Rp 1.8 trillion,” said Rio.

“This estimate uses a macro approach based on national productivity and should be understood as potential economic impact (BPS, 2026),” he explained.

With an average worker income of around Rp 3.33 million per month, while the household poverty line is around Rp 3 million per month, the public’s economic safety margin is considered very thin.

“In this situation, a single accident can disrupt a family’s economic stability,” he revealed.

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