Solution to Rp77 Trillion Loss: Ministry of Transportation Accelerates Urban Mass Transportation Projects
JAKARTA - The Ministry of Transportation (Kemenhub) emphasized that the provision of integrated and sustainable mass transportation is the absolute solution to overcome congestion, reduce the high cost of travel, and reduce the community's dependence on private vehicles in urban areas.
This was conveyed by the Director of Road Transport of the Directorate General of Land Transportation of the Ministry of Transportation, Muiz Thohir, when he was a speaker at the National Seminar of the Indonesian Transportation Society (MTI) entitled "The Strategic Role of the Sistranas Bill in Realizing Integrated and Sustainable Mass Transportation" in Jakarta.
"Integrated and sustainable mass transportation exists as an answer to the problems of congestion, high transportation costs, and the high dependence of the community on private vehicles," said Muiz.
Impact of Traffic Congestion: State Losses of Rp77 Trillion per Year
Based on the latest data from the Ministry of Transportation, the motor vehicle population in Indonesia has reached 172.9 million units with a growth rate of 4.5 percent per year. This surge in numbers places a very heavy burden on the capacity of national road infrastructure.
Due to traffic congestion, the national economic loss is estimated at Rp77 trillion per year.
Not only that, data from the Central Statistics Agency (BPS) shows that urban people have to spend 16 percent to 24 percent of the total household income just for transportation costs. This figure far exceeds the standard of Sustainable Development Goals (SDGs 11.2) which sets a maximum limit of transportation costs of 5 percent.
This condition is even more burdensome considering that 58 percent of Indonesian residents work in the informal sector with an income below the Provincial Minimum Wage (UMP). On the other hand, the transportation sector also absorbs most of the energy subsidies, which are worth Rp. 300 trillion per year.
MASTRAN Project: Pilot Modern Mass Transportation System
To overcome this mobility crisis, the Ministry of Transportation has rolled out the Indonesia Mass Transit Project (MASTRAN Project) strategic project which prioritizes the development of public transportation in 20 medium-term urban areas.
As a first step, two agglomeration areas were selected as pilot projects with financing support from the World Bank and AFD:
Mebidang area (Medan, Binjai, Deli Serdang): Construction of 21 km of special lanes and 12 routes of Bus Rapid Transit (BRT). Provision of 31 on-corridor stops, 681 off-corridor stops, and 273 buses. Integrated with 109 intersections of Area Traffic Control System (ATCS). Initial projection: 154,851 passengers per day at the beginning of operations in 2027. BBMA area (Bandung Basin Metropolitan Area): Construction of 21 km of special lanes and 18 routes of BRT. Provision of 34 on-corridor stops, 719 off-corridor stops, and 478 buses. Integrated with 65 ATCS intersections. Initial projection: 204,736 passengers per day."The progress of the MASTRAN Project is currently in the construction and institutional preparation phase of the BRT management. The institution is targeted to be formed in November 2026 and construction work will be completed in March 2027," explained Muiz.
Urgency of the Sistranas Bill and Regional Commitment
Muiz emphasized that the success of mass transportation does not only depend on the central government, but also requires political will and budgetary (fiscal) commitment from local governments.
Currently, the development of regional transportation systems still faces various obstacles, ranging from fiscal constraints, the lack of a public transportation management institution in the region, to obstacles to inter-regional subsidy sharing schemes (Public Service Obligation/PSO) in agglomeration areas.
Therefore, the evaluation of the MASTRAN project will be the main basis for the preparation of the Draft National Transportation System Law (RUU Sistranas).
"The Sistranas bill is very much needed to provide a legal umbrella related to the regulation of Creative Funding, Mandatory Spending (allocation of special budgets) for mass public transportation, as well as the establishment of a standard and firm public transportation management institution in the region," he concluded.