Jakarta. The government will subsidize fares for the new railway systems, including the Light Rail Transit (LRT) and the Jakarta-Bandung High-Speed Train, as part of its strategy to incentivize vehicle owners to shift to public transportation, President Joko “Jokowi” Widodo said on Thursday.

The LRT, designed to connect Jakarta with its satellite cities, along with the high-speed train, is scheduled for inauguration during the upcoming Independence Day celebrations later this month.

During his visit to the Dukuh Atas Train Station in Jakarta, the president said that the new railway systems aim to alleviate traffic congestion by offering commuters cheaper and quicker alternative means of transportation.

"Traffic congestion in Greater Jakarta and Bandung leads to an annual economic loss of Rp 100 trillion [$6.6 billion]," Jokowi said. "All public transportation systems, including the airport train, TransJakarta buses, commuter trains, LRT, MRT (mass rapid transit), and high-speed trains, must be subsidized."

He also announced that the LRT will officially commence operations on August 26, following a series of rigorous track and safety tests.

"We have successfully conducted one final test with excellent results. God willing, the LRT will be operational starting August 26," Jokowi affirmed.

Meanwhile, the high-speed train will begin its commercial services next month, he added.

Transportation Minister Budi Karya Sumadi, present at the event, said that the LRT is currently undergoing additional tests on its signaling system and track performance.

"We must conduct comprehensive tests on all 31 trains, evaluating them under maximum load conditions with three-minute intervals," Budi explained.

The minister said that the electronic signaling system testing phase will include the involvement of technicians from German multinational technology company Siemens.