• Jl.Medan Merdeka Barat No.8 Jakarta Pusat 10110 - Indonesia

Indonesian Government Subsidies Indonesian Railways for Rp3.2 Trillion to Serve Around 250 Million People's Movement

Jakarta (12/1) – The Ministry of Transportation allocates a budget of Rp. 3.2 Trillion more for the implementation of the Public Service Obligation (PSO) and the 2022 Pioneer Train Subsidy. The details, for PSO Rp. 3,051 Trillion and Rp. Rp. 186.7 Billion.

The Ministry of Transportation has assigned PT KAI to carry out these services in order to provide safe, secure, comfortable, healthy, and affordable train services.

Minister of Transportation Budi Karya Sumadi, Wednesday (12/1), witnessed the signing of the contract for the provision of PSO and subsidies for the 2022 pioneer trains, which were carried out by the Director-General of Railways, Zulfikri, and the President Director of PT KAI, Didiek Hartantyo,  at Pasar Senen Station, Jakarta.

“There are government funds of around Rp. More than 3.2 trillion, were entrusted to PT KAI to serve around 250 million people's movements. We will oversee so that PSO activities and these pioneering subsidies can be carried out properly," said the Minister of Transportation.

The Minister of Transportation said that the allocation of the budget had gone through a long process of discussion with PT KAI and was carried out selectively so that it was right on target and the community really felt the benefits. "We want to provide convenience, certainty, and safety for rail service users. For that, the elements of safety and excellent service must be fulfilled properly," said the Minister of Transportation.

The Minister of Transportation appreciated PT KAI for consistently making improvements and improving services to rail service users. The Minister of Transportation hopes that in the future PT KAI will continue to innovate to provide the best service. "In the future, PT KAI will be able to manage funds independently in order to remain profitable, but also provide good services," said the Minister of Transportation.

The government consistently provides budget allocations for PSO and pioneer train subsidies. In the last 4 (four) years, the PSO budget contract value is: In 2018 it is Rp. 2.27 Trillion, 2019 (Rp.2.321 Trillion), 2020 (Rp.2.519 Trillion), and 2021 (Rp. 3.448 Trillion). Meanwhile, the value of the pioneering railway subsidy contracts are 2018 (Rp 193.405 billion), 2019 (Rp 183.960 billion), 2020 (Rp 159.012 billion), and 2021 (Rp 211.706 billion).

The implementation of the Public Service Obligation (PSO) in the 2022 contract includes:

• Long-distance Economy Train has 4 services with a volume of 1,585,224 passengers in one year;
• Medium Distance Economy Trains have 9 services with a volume of 1,748,303 passengers in one year;
• Short Distance Economy Trains or Local Trains have 26 services with a volume of 16,330,190 passengers in one year;
• Economy Diesel Rail Train (KRD) has 14 services with a volume of 1,683,940 passengers in one year,
• The Lebaran Economy Train has 1 service line with a volume of 18,662 passengers in one year;
• Jabodetabek Electric Rail Train (KRL) with a volume of 220,332,388 passengers in one year,
• Yogyakarta Electric Rail Train (KRL) with a volume of 3,074,391 passengers in one year.

Meanwhile, the implementation of the subsidy assignment for pioneering trains in the 2022 contract includes:

• Cut Meutia Pioneer Train with a 21 Km Kuta Blang-Krueng Geukeuh service line with a TA contract value. 2022 amounting to Rp. 18,831,876,000,-. Fixed frequency as many as 8 trains/day;
• Anai Valley Perintis KA with a 38 Km Minangkabau International Airport – Kayu Tanam service crossing with a TA contract value. 2022 amounting to Rp 13,860,057,548,-, fixed frequency of 6 trains/day;
• Minangkabau Express Pioneer Train with a service line between Pulau Aie - Minangkabau International Airport along 25.5 Km with a contract value of TA.2022 of Rp. 23,999,910,793,-, fixed frequency of 12 trains/day;
• KA Pioneer LRT South Sumatra with the airport - DirectorateGeneral of Railways service traffic along 23 km with a contract value of TA.2022 of Rp 119,766.657,000, -, fixed frequency of 88 trains/day;
• KA Perintis Bathara Kresna with a 37 Km length of service line between Purwosari – Wonogiri with a contract value of FY 2022 of Rp 10,300,000,000,- Fixed frequency of 4 trains/day

On the same occasion, the President Director of PT KAI, Didiek Hartantyo, expressed his gratitude and appreciation to the Ministry of Transportation which has been supporting PT KAI through the assignment of PSO services and pioneering train subsidies.

"We are committed to fulfill the assignment given as well as possible according to the service standards set and can provide more value to the community. We continue to strive to provide services that are increasingly reliable, efficient, and affordable," he said. (LKW/RDL/LA/HS)

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