JAKARTA - The Ministry of Transportation (Kemenhub) encourages local governments to take over the Buy The Service (BTS) program or urban public transportation subsidies. Where the target is, starting in 2026 the central government will no longer allocate a budget for urban public transportation subsidies.

The BTS service program has been running for 5 years since 2020. This service is an urban transportation service with a service purchase scheme. The goal is to accommodate the needs of urban public transportation modes according to the Minimum Service Standards (SPM) set.

Director of Road Transportation, Directorate General of Land Transportation of the Ministry of Transportation, Ernita Titis Dewi, explained that several routes have been taken over or funded through the regional budget (APBD).

Furthermore, Ernita hopes that this step can be imitated by other regions so that the portion of the state budget allocation (APBN) can be reduced for public transportation subsidies.

"We will re-evaluate whether next year, we hope that next year it will be fully taken over (BTS program) by the Regional Government," he said in a media briefing at the Ministry of Transportation Office, Jakarta, Tuesday, January 14.

Referring to data from the Ministry of Transportation, since 2022 the number of corridors that have received BTS subsidies has continued to decline. In that year there were 51 corridors out of 10 cities with a budget of IDR 552.91 billion.

Then, in 2023 the number of corridors that received BTS services also decreased. The amount is 48 corridors with a budget of IDR 582.98 billion.

Then, in 2024 again reduced to 46 corridors for 11 cities with a budget allocation of IDR 437.89 billion. Meanwhile, for 2025, BTS services will be cut significantly, the remaining 12 corridors for 8 new cities with a budget allocation of IDR 177.49 billion.

According to Ernita, the cutting of the corridors that has been carried out since 2022 is because several corridors have been successfully taken over by the local government. That way, no longer get subsidies from the Central Government.

In addition, said Ernita, another reason for reducing the number of corridors served by BTS from the central government was also the impact of the cumulative decline in the Ministry of Transportation's budget ceiling.

Even so, Ernita said that the 2025 budget ceiling reduction was not only experienced by the Ministry of Transportation. But it also happens in all Ministries/Institutions.

"So in the Ministry of Transportation, from 2024 to 2025, it will decrease by around Rp. 7 trillion as a whole," he said.

For BTS itself, from IDR 437 billion to IDR 177 billion. So what was previously for 11 cities to only 8 cities. With this reduction of almost a third, we have to think realisticly, which ones will be financed, which ones are high regional commitments, and which ones need to be supported further. Which ones are continued or not," he continued.

Ernita explained that at least there were several progress handovers or the transition of the BTS program from the Central Government to the Regions in 2025. Like in Surakarta City, which took three corridors.

Then, continued Ernita, Bandung took over all corridors, Banjarmasin took over all corridors, Surabaya took one corridor, Medan took all corridors, Makassar took one corridor, Palembang took one corridor, Balikpapan took over all corridors in 2028, and Banyumas took over all services starting in 2026.

"We are intensely meeting with the local government to prepare for the implementation of BTS by the Regional Government, because we will carry out a handover to BTS services to local governments," he said.


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