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Experts slam govt’s plan to subsidize Jakarta-Bandung high-speed railway
In an effort to strike a balance between real cost and consumer purchasing power, the government has decided to subsidize the Jakarta-Bandung high speed railway (KCJB), a decision that experts question given the railway's upper middle class target market.
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Workers arrange equipment on February 21, 2019, inside a large tunnel built for the Jakarta-Bandung high-speed railway in Walini, West Bandung regency, West Java. (JP/Wienda Parwitasari)
T
he government has decided to subsidize ticket fares for the Jakarta-Bandung high-speed railway in a bid to increase consumer purchasing power and attract passengers, but experts have questioned the decision, given the upper middle class target market.
President Joko “Jokowi” Widodo said on Thursday that tickets for the high-speed train will be subsidized, like other forms of mass transportation in the country.
Jokowi hopes a subsidy will bring ticket prices down and entice people to use the train vis-à-vis private vehicles.
Kereta Cepat Indonesia China (KCIC), the consortium responsible for building and operating the railway, has proposed a ticket price of Rp 250,000 (US$16.30) for the longest distance in the first three operational years, much lower than the estimated of Rp 350,000 per passenger without government intervention.
That means the government would need to allocate at least Rp 1.1 trillion a year from the state budget to cover the subsidy, assuming the train will carry 30,000 passengers a day as projected by Polar UI, a testing and modelling provider from the University of Indonesia.
The figure is expected to be on par with the already existing railway line operated by state-owned Kereta Api Indonesia (KAI) that links Jakarta and Bandung at Rp 250,000 per passenger for executive class, just below the most expensive seat in luxury class.
Read also: High-speed railway delayed again, but it’s for the better, experts say
