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Government to slash subsidy for railway pioneer routes
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Passengers wait for a train at Krueng Geukueh Station in Dewantara, North Aceh, in this file photo dated Jan. 30, 2014. (Serambi Indonesia via tribunnetwork/Irfan M. Nur)
T
he government has decided to slash a subsidy for six railway pioneer routes – railway routes in remote areas – in an attempt to optimize the use of this year’s state budget, an official has said.
The routes include Kreung Mane - Bungkah - Kreung Geukeuh in Aceh, Lubuk Alung - Kayu Tanam in West Sumatra and Kertapati - Indralaya in South Sumatra.
"The decision was based on an evaluation of the realization of the pioneering route [subsidy], last year, less than 85 percent of which was dispersed," Transportation Ministry railway director general Zulfikri said on Friday.
The subsidy was cut by 18.92 percent to Rp 79.9 billion (US$6 million) from Rp 98.5 billion, last year.
The routes' fares are set between Rp 3,000 and Rp 4,000 for a single trip.
The pioneer routes transported 1.4 million passengers last year, a 16.6 percent increase from the figure in 2016, said Zulfikri. (bbn)
