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View all search resultsMinistry pushes mass transit to curb fuel subsidy costs
Transportation expenses consume up to 40 percent of household income.
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An image shows a Transjakarta bus stopping at the Senayan Bank Jakarta bus stop in the Senayan area of South Jakarta, on April 16, 2026. (JP/Iqro Rinaldi)
T
he Transportation Ministry is seeking to enhance urban mass transportation to reduce annual fuel subsidy costs, as well as to ease congestion, pollution and commuting expenses.
Aan Suhanan, the ministry’s director general for land transportation, said that transportation expenses consumed up to 40 percent of household income.
“This sector also absorbs 90 percent of the Rp 300 trillion [US$16.81 billion] annual fuel subsidy budget,” he said on Thursday, as quoted by Antara.
Read also: Transportation costs in Indonesia exceed global standard: Ministry
This imbalance in the transportation sector has also triggered issues ranging from longer travel times, financial losses from congestion and air pollution, to rising difficulties in accessing education and employment, Aan added.
To address these challenges, he said that the government is developing urban mass transit systems across 20 major cities, in line with the 2025-2029 National Medium-Term Development Plan (RPJMN).
“Developing urban mass transit requires integrated planning, joint funding between the central and regional government and robust governance. This is expected to create a more sustainable, equitable and efficient transportation system,” Aan said.
