Land transportation: BisKita emergency in many cities

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Bisnis Indonesia - Transportasi darat: Darurat BisKita di banyak kota

17 January 2025

By Artha Adventy and Hendra Wibawa

Public transportation routes utilising the buy-the-service (BTS) scheme in several cities will be reduced, following a more than 50% cut in the subsidy budget from the Transportation Ministry for 2025.

At the start of this year, several major cities in Indonesia, including Bogor, Yogyakarta, Solo, and Denpasar, have begun phasing out the BisKita and Teman Bus public transportation services.

The discontinuation of these bus services follows the expiration of the subsidy contract provided by the Transportation Ministry, which ended on 31 December 2024.

The termination of the BisKita Trans Pakuan service in Bogor on 1 January 2025 led to complaints from passengers due to the lack of public notification about the discontinuation.

Since its launch in November 2021, the BisKita Trans Pakuan service has operated across four corridors: Bubulak Terminal-Cidangiang, Bubulak Terminal-Ciawi, Ciparigi-Bogor Station, and Parung Banteng-Air Mancur.

In Denpasar, the Trans Metro Denpasar service has similarly been affected, facing discontinuation alongside the BisKita Trans Pakuan service. Meanwhile, in Solo, the Trans Batik service has had to scale back its operations due to the cessation of the subsidy.

In Yogyakarta, the provincial government decided to take over the service through TransJogja after the Teman Bus Jogja ceased operations on 1 January 2025.

Unfortunately, not all bus crew members were rehired by the Yogyakarta Provincial Government through PT Jogja Tugu Trans, the operator of TransJogja, following the transition.

The decision to take over the BisKita and Teman Bus services has been mirrored in several other cities, including Banjarmasin, Medan, and Bandung. However, public transportation services in these major cities have yet to fully recover. Additionally, congestion continues to worsen daily, largely due to the prevalence of private vehicle use.

Specifically regarding the BisKita Trans Pakuan service, Suharto, the Acting Head of the Greater Jakarta Transport Authority (BPTJ) of the Transportation Ministry, stated that the Bogor Local Government assumed control of the service as of 1 January 2025.

Suharto explained that the transfer of the BisKita Trans Pakuan service aligns with the commitment outlined in the subsidy transfer agreement under the BTS scheme in Bogor for 2025. This agreement was made between the Bogor Transportation Agency and the Greater Jakarta Transport Authority (BPTJ) on 25 June 2024.

He noted that the takeover aligns with the reduced budget ceiling for the BTS scheme from the Transportation Ministry in 2025. The central government's budget rationalisation policy has affected various programmes and activities within the Transportation Ministry, necessitating this transition.

Suharto stated that due to budget rationalisation, it is not feasible for the central government to continue subsidising urban public transportation services under the BTS scheme in Bogor. This transition reflects broader budgetary adjustments affecting various programmes within the Transportation Ministry.

Initially, the BisKita Trans Pakuan service is a stimulus programme that expects Bogor Local Government to take over the management from the Transportation Ministry.

Suharto elaborated that the management handover process had been initiated since 2023. However, the Transportation Ministry extended the service until the end of 2024, as the Bogor Local Government indicated it was not yet prepared to assume full responsibility for the service.

"Last year, Bogor indicated its readiness to manage the BisKita service by allocating a budget of Rp10 billion. This demonstrates that the handover was not abrupt or one-sided, but rather a well-considered process," he explained.

Road Transportation Director of the Land Transportation Directorate General at the Transportation Ministry, Ernita Titis Dewi, confirmed that the budget for the BTS scheme in 2025 has been significantly reduced by 59.49%, now totalling Rp177.49 billion. In contrast, the 2024 budget for the BTS scheme was Rp437.89 billion.

According to him, the significant reduction in the BTS scheme budget for 2025 is a direct result of broader budget cuts within the Transportation Ministry.

"This year, Its not just the Transportation Ministry facing cuts; all ministries are undergoing budgetary adjustments. We must prioritise activities across ministries and institutions," Ernita stated. With the BTS programme budget reduced by nearly two-thirds, the Transportation Ministry is being pragmatic about funding the programme.

"The prioritised areas must be funded. We need to determine which initiatives require continued support, which corridors should remain operational, and which ones should be discontinued," she stated.

The budget cuts for the BTS programme will result in a reduction of BisKita and Teman Bus corridors. In 2025, the BTS programme is slated to operate in only six cities with 12 corridors, along with plans to establish services in two new cities. The final determination of these service corridors is pending further studies.

In 2024, the Transportation Ministry implemented the BTS programme across 11 cities, operating 46 corridors with a budget of Rp429.79 billion.

Since 2023, there has been a consistent trend of budget reductions for the BTS programme. That year, the Transportation Ministry's BTS programme was allocated a budget of Rp582.98 billion, with an actual expenditure of Rp573.36 billion.

Reflecting on the budget trends for the BTS programme, in 2020, the Transportation Ministry allocated Rp51.83 billion to operate services in five cities across 19 corridors. The following year, 2021, saw a significant budget increase to Rp312.25 billion, enabling the programme to expand to 26 corridors in the same number of cities.

In 2022, the Transportation Ministry allocated Rp552.91 billion to the BTS programme, expanding its operations to 10 cities with a total of 51 corridors.

Regional government duties

Meanwhile, Djoko Setijowarno, Deputy Chairperson of the Indonesia Transportation Society (MTI), is urging both the central and regional governments to take an active role in managing public transportation.

He warns that poor management can have adverse effects on the population.

Djoko highlighted that the lack of public transportation in certain parts of Central Java has forced some children to stop attending school. "The rising number of students dropping out of school is contributing to an increase in early-age marriages and the stunting rate," he noted.

He explained that the availability of public transportation in regions largely hinges on the political will of regional leaders.

"The fiscal capabilities of many regions are not as robust as Jakarta's, but with political will, solutions can be found," Djoko asserted.

Additionally, Djoko emphasised that the central government, through the Home Affairs Ministry, should offer a stimulus in the form of special allocation funds (DAK) for regions that independently implement public transportation systems. He explained that such funds are crucial for establishing and supporting public transit infrastructure in these areas.

Data from the Road Transportation Directorate of the Land Transportation Directorate General at the Transportation Ministry indicates that the BisKita and Teman Bus programmes have successfully shifted 69% of motorcycle users to public transport. Additionally, 31% of BisKita users do not own a motorcycle. As for car usage, 26% of users own a car, while 74% do not, highlighting the programmes' impact on reducing reliance on private vehicles.

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