Commission B and Executive Discuss Transportation Subsidies

Jakarta City Council's Commission B held a meeting together with the executive to discuss the effectiveness of the Public Service Obligation (PSO) scheme or public service subsidies in the transportation sector managed by Transjakarta, MRT Jakarta, and LRT Jakarta.

Quality of service must be the top priority

Chairman of Commission B, Nova Harivan Paloh said the discussion focused on the significant allocation of transportation subsidies from the Jakarta Regional Budget, which amounts to approximately Rp 6 trillion. An evaluation was conducted to ensure the budget was optimally utilized to improve public services.

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"We listened to various inputs from the leadership and members of Commission B regarding the evaluation of PSO costs, including opportunities to increase non-farebox revenue and ticket optimization," he said, Tuesday (10/7).

Nova emphasized the provision of transportation subsidies must remain oriented towards improving the quality of service and passenger comfort, in accordance with the minimum service standards that have been set.

"Quality of service must be the top priority in the use of subsidy funds," he added.

According to him, the Jakarta Provincial Government has currently listed 15 community groups as beneficiaries of the PSO, including students, the elderly, and other specific groups. Commission B is encouraging an in-depth study of the effectiveness of beneficiary mapping and potential tariff adjustments in the future.

"We'll see the study results. Transjakarta fares, for example, have been Rp 3,500 since 2005 and have never been increased. Yet, Transjakarta subsidies are the largest, reaching around Rp 4.2 trillion per year, with an average of 1.3 million passengers per day," he explained.

He continued that the discussion on tariffs is also related to regional fiscal conditions. The potential for a significant reduction in Revenue Sharing Funds (DBH) from the central government also impacts the regional budget's ability to cover PSO subsidies.

"With this DBH cut, we are exploring the possibility that some transportation subsidies can be financed by the central government," he continued.

Nova emphasized that this transportation subsidy is primarily for the people of Jakarta. Therefore, services must be continuously improved, from the comfort of bus stops and the cleanliness of restrooms to the provision of prayer facilities.