Land transportation director general Budi Setyadi said the revitalization project covered structural improvements as well as service upgrades to passenger facilities and buses.

“We will revitalize 38 bus stations, most of which are located in Central Java, West Java and East Java, and some [others] outside Java. Both bus facilities and the terminal’s infrastructure must be improved. We have to catch up with the developments to airport and train station,” he said on July 10 in Jakarta.

Bus stations would also be expected to serve customers more efficiently and effectively in the future by implementing technologies such as the cashless payment system, he said.

The “type A” bus terminals targeted for the facelift include Arjosari (Malang), Rajekwesi (Bojonegoro), Purboyo (Madiun), Bayuangga (Probolinggo), Tingkir (Salatiga), Ir. Soekarno (Klaten), Giwangan (Yogyakarta), Leuwipanjang (Bandung) and Guntur Melati (Garut).

The government has allocated Rp 500 billion (US$35.90 million) in the state budget for the revitalization program, with a portion of the funds raised through Sharia Sovereign Bonds (SBSN) sales.

The Transportation Ministry’s road transportation director, Ahmad Yani, said that the bus terminal revitalization project was currently under development, with a specific plan and budget for each terminal.

“For the Joglosemar [Yogyakarta-Surakarta-Semarang] area, the first bus terminal [targeted] for renovation is Giwangan Terminal in Yogyakarta,” said Ahmad Yani. “The Giwangan refurbishment will cost about Rp 37 billion,” he added.

Another terminal to receive a facelift in the area is Surakarta’s Tirtonadi Terminal. The government has allocated about Rp 40 billion for refurbishing Tirtonadi, where it plans to build a shopping mall or trade center on the upper level.

The ministry first raised its plan to improve land transportation facilities and infrastructure during a hearing last month with the House of Representatives. The plan aimed to encourage more people to use buses for traveling..

The ministry‘s program also includes improving the quality of mass transit systems in several cities.

Ahmad said the ministry was developing a “Buy the Service” subsidy scheme for improving the services and facilities of urban mass transportation.

Under the scheme, the central government would directly manage the institutions entrusted with public transportation services. In the past, the ministry transferred the management of public transportation to local governments, but many were unable to manage the systems properly, he added.

“We have learned from our past experience [that] city and regional administrations have failed in managing transportation systems like the Bus Rapid Transit [BRT],” Ahmad said at a workshop in Yogyakarta on Sunday, July 7. “So, while we provided the buses in the past, under the ‘Buy the Service’ system, we will now provide the service [also],” he said.

Ahmad Yani further explained that urban mass transportation in several cities had only lasted five to seven years because of problems related to operational costs, inefficient management and poor facilities.

“Sometimes, the commitment of regional governments was only on paper. Hence, we have decided to take a different approach in order to improve the system,” he said.

Once the mass transit systems had been established and were operating well, the government would hand over their management to the relevant regional administration under a separate scheme.

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