Jakarta. Indonesia’s transport sector consumes around 90% of the country’s annual fuel subsidy budget of Rp 300 trillion ($16.7 billion), prompting the government to accelerate the development of urban mass transit systems to ease fiscal pressure while tackling congestion and air pollution.

Aan Suhanan, Director General of Land Transportation at the Transportation Ministry, said transportation costs currently account for 30%-40% of household income, creating an additional burden on the public while contributing significantly to fuel subsidy spending.

“Transportation costs currently consume as much as 30%-40% of people’s income, and the sector absorbs 90% of the Rp 300 trillion annual fuel subsidy budget,” Aan said on Thursday.

He said the heavy reliance on private vehicles has led to worsening traffic congestion, air pollution, and longer travel times in major cities. High mobility costs also make it more difficult for people to access education and employment opportunities.

To address these challenges, the government is expanding Urban Mass Public Transportation (AUMP) services across 20 major cities under the 2025-2029 National Medium-Term Development Plan (RPJMN).

According to Aan, the program aims to shorten travel times, improve transport accessibility, and strengthen the role of urban centers as drivers of economic growth.

“The development of urban mass transit requires integrated planning, shared funding commitments between the central and regional governments, and strong governance,” he said.

The ministry is also intensifying the digitalization of regional transport services through various platforms, including the Mitra Darat application, which helps operators improve service quality through faster and more measurable performance monitoring.

Other digital services include the Teman Bus website, a buy-the-service (BTS) operational management platform, an executive dashboard, a digital checker application, and a web-based monitoring system to oversee public transport service standards.

Aan also praised the Batam city administration for expanding its Trans Batam bus network through a gradual increase in fleet capacity since 2024.

Batam added 20 Trans Batam buses in 2024, followed by 13 units in 2025 and another 19 units in 2026, bringing the total BTS fleet in operation to 52 buses.

The fleet serves five strategic corridors connecting to Batam Centre from Sekupang, Tanjung Uncang, Jodoh, Tanjung Piayu, and Nongsa.

“We also appreciate the implementation of a cashless payment system and the integration of Trans Batam with other transport modes, including connectivity to Hang Nadim Airport,” Aan said.

He described the expansion of the bus rapid transit (BRT) system under the BTS scheme as a strategic step toward creating a more orderly, productive, and sustainable urban mobility system.

“If efficient public transportation is available, it can reduce the economic burden caused by high transport costs and congestion while also helping prevent an energy crisis,” Aan said.