Ministry Of Transportation Allocates IDR 12.2 Trillion For Pioneer Transportation Subsidy & PSO This Year

ILLUSTRATION BETWEEN HO AND KEMENHUB

JAKARTA - The Ministry of Transportation seeks to provide affordable public transportation services for the community. One of them is through the pioneering subsidy program and public service obligation (PSO) for economic class transportation, which is expected to encourage equitable development.

"With subsidies and PSOs, the rates paid by passengers are more affordable. Because some operational costs from transportation operators have been paid by the government," said Ministry of Transportation Spokesperson Adita Irawati in a written statement, Saturday, January 27.

Adita assessed that until now there are still many regions in Indonesia that need the support of public transportation services at affordable rates. This is to open regional isolation while at the same time spurring the movement of passengers and goods/logistics.

Therefore, the Ministry of Transportation has allocated a budget for pioneer subsidies and PSOs in all modes of IDR 12.2 trillion in 2024.

"In addition to strengthening connectivity, other benefits are to improve people's standard of living and purchasing power, maintain economic stability and reduce the disparity of goods/logistics prices between regions," said Adita.

He also explained that a number of subsidies and PSO programs have been carried out so far in the land sector, namely road transportation subsidies in 332 routes, pioneer subsidies for freight transportation on 6 routes, inter-mode transportation subsidies for tourism areas in 11 regions and 34 routes. Then, there is an urban transportation subsidy/Buy The Service (BTS) in 11 cities, a pioneer crossing subsidy on 274 routes and a long distance ferry on 2 routes.

Next, in the marine sector, there is a subsidy of pioneer ships in 116 routes, subsidies for organizing sea toll ships in 39 routes. The Ministry of Transportation also provides subsidies for livestock ships in 6 routes, subsidies for rede ships in 16 routes and PSO for economy class ships in 26 routes.

Meanwhile, in the air sector, it includes passenger pioneering air transportation subsidies on 220 routes, cargo pioneer air transportation subsidies on 41 routes and cargo fuel subsidies with 1,323 drums.

Meanwhile, programs in the railway sector include subsidies for pioneering rail services in 5 regions, namely Central Java, North Sumatra, West Sumatra, South Sumatra and Aceh. As well as PSO for economy class trains for long-distance train trips, medium distance trains, Lebaran trains, short distance trains, KRD, Jabodetabek KRL and Yogyakarta KRL.

"We hope that more and more areas that were previously served by pioneering transportation can advance to commercial levels. Thus, the allocation of the subsidy budget can be diverted to other areas that need it more," he added.

The total budget allocation for pioneer subsidies and PSOs in all modes throughout 2023 reached Rp9.1 trillion. Then, this year it increased to Rp12.2 trillion.