Indonesian Political, Business & Finance News

When Public Transport Is Marginalised Amid Electric Vehicle Trend

| | Source: KOMPAS Translated from Indonesian | Infrastructure
When Public Transport Is Marginalised Amid Electric Vehicle Trend
Image: KOMPAS

JAKARTA – The government’s plan to reintroduce a subsidy of Rp5 million per electric motorcycle unit starting June 2026 has drawn criticism. The programme, targeting 100,000 electric motorcycle purchases with a total budget of Rp500 billion, is seen as failing to address the root issues of Indonesia’s mobility challenges. Djoko Setijowarno, an academic from the Civil Engineering Program at Soegijapranata Catholic University and advisor to the Indonesian Transport Society, argued that the substantial budget should instead be directed towards strengthening public transport, which would benefit a wider segment of the population. However, the policy is seen as misdirected, primarily benefiting private vehicle users rather than the broader public reliant on public transport. “Choosing between subsidising 100,000 private electric motorcycles or improving urban public transport systems is a test of the government’s commitment to the public good,” Djoko said on Sunday, 24 May 2026. The funds could build three to five public transport corridors per city, supported by eight to 10 buses per corridor. According to him, this approach would be far more strategic, acting as an economic safety net for communities amid rising energy and fuel costs. Moreover, public transport investment is more fiscally efficient, as its benefits are widely shared while reducing long-term reliance on private vehicles and fuel subsidies. Djoko warned that policies overly focused on private vehicles risk worsening Indonesia’s transport issues. “Continuously coddling private vehicles would only perpetuate the vicious cycle of traffic congestion, youth accidents, and budget inefficiencies,” he said. He noted that many traffic accidents in rural areas involve students and university students using motorcycles due to limited public transport options.

View JSON | Print