Transport Ministry pushes mass transit to slash Rp300 trillion fuel subsidy

The Transport Ministry is pushing to strengthen urban mass transit to cut fuel subsidy costs by up to Rp300 trillion annually, while also reducing traffic congestion, pollution, and high mobility costs for citizens.

“Transport costs currently consume up to 30-40% of household incomes, while the sector accounts for 90% of the annual Rp300 trillion fuel subsidy,” said Director General of Land Transportation Aan Suhanan in a statement on Thursday.

Aan said this imbalance leads to issues including longer travel times, economic losses from traffic jams, air pollution, and difficulties for citizens accessing education and employment.

To address this, the government is developing Urban Mass Transit (AUMP) in 20 major cities under the National Medium-Term Development Plan (RPJMN) 2025-2029. Aan did not specify the cities involved.

“Developing AUMP requires integrated planning, central-local funding collaboration, and strong governance to create a more sustainable, equitable, and efficient transport system,” Aan said.

As part of central government support for regional transport digitalisation, the ministry also provides the Mitra Darat app to help operators quickly and measurably improve service quality.

Additional support includes the Teman Bus website, a Buy the Service (BTS) operational management app, executive dashboard for monitoring operations, a digital checker app to oversee minimum service standards by bus operators, and a web checker to track compliance with service standards.