Pioneer Transportation, the Lifeblood of Society that is Often Ignored

Budget cuts must consider the domino effect they cause. Rather than improving welfare, this policy risks triggering inflation.

16 Feb 2025 17:53 WIB · English

By Yosepha Debrina Ratih Pusparisa

This article has been translated using AI. See original.

Many parties are concerned that budget cuts for Ministries/Agencies (K/L) will reduce transportation subsidies, which could potentially hinder public services and once again burden the community. Nevertheless, the government has promised to continue allocating funds to finance subsidized public transportation.

In a working meeting with Commission V of the DPR RI on Thursday (13/2/2025), the Ministry of Transportation (Kemenhub) received a budget of Rp 17.7 trillion. This amount will be distributed to nine echelon I organizational units. This figure is equivalent to 56.3 percent of the initial 2025 ceiling of Rp 31.45 trillion.

In detail, the budget will be allocated to the Secretariat General amounting to Rp 464.09 billion, the Inspectorate General Rp 85.48 billion, the Human Resources Development Agency Rp 1.82 trillion, and the Transportation Policy Agency Rp 71.01 billion.

The allocation based on sectors, the Directorate General (Ditjen) of Sea Transportation received the largest budget of up to Rp 7.32 trillion. It is followed by the Directorate General of Air Transportation with Rp 3.39 trillion, and the Directorate General of Land Transportation with Rp 3.14 trillion. There is also a budget for the Directorate General of Railways amounting to Rp 1.31 trillion and the Greater Jakarta Transportation Management Agency with Rp 108.95 billion.

"For the service of pioneer air transportation activities with us, it continues as usual, normally. Lastly, the information from the Ministry of Transportation is that pioneer flights will continue to be subsidized, not affected by efficiency measures. This is because it is indeed a public service that directly impacts the community," said Andy Hendra Suryaka, Head of Letung Airport, Anambas, Riau Islands when contacted in Jakarta, Sunday (16/2/2025).

Head of Letung Airport Andy Hendra Suryaka (right) together with a figure from the Malay Customary Institution (LAM), Syahlan Jaya (72) at Letung Airport, Anambas Islands, Riau Islands on Wednesday (24/7/2024). They explained the differences in the community's life before and after the existence of the airport.

He stated that savings in the use of airport facilities have indeed decreased. Some of these include air conditioners that are turned on when approaching operational flight hours, as well as the use of lights. Now, they are making more use of solar panel lights. Official trips, including meetings, have also decreased.

As the operator of airports in remote, frontier, outermost, and border areas (3TP), public transportation is highly needed by the community. This mode of transportation plays a role as a driver of the regional economy.

"Here we need air transportation, considering that the islands are sensitive to unpredictable weather. Air transportation is an alternative, when the sea cannot be used (because of high waves)," said Andy.

So far, pioneer transportation run by Susi Air has provided lower ticket prices than commercial aircraft. Because, the government is able to subsidize it. The routes accommodated by pioneer modes are also different from commercial ones.

Susi Air serves the Letung-Tanjung Pinang route (round trip) with a ticket price of IDR 765,000 per year in 2025. The amount has increased by 6.1 percent from last year's IDR 475,000. With the same destination, people can use ships with tickets for IDR 450,000. Without government subsidies, of course ticket prices will be pushed up.

Infographics of Passenger and Cargo Services at Letung Airport, Anambas Islands, Riau Islands

However, air transportation is still considered more efficient than sea transportation. Because, the pioneer plane trip only takes about 1 hour, 15 minutes. Ships can take up to 24 hours.

For commercial routes, Andy continued, Wings Air with ATR or propeller aircraft serves the Letung-Batam route (round trip). Ticket prices are sold at IDR 1.8 million for a one-way trip.

"Hopefully, subsidy programs that directly impact the community, remain a government priority. The government's responsibility does not stop at the big islands, but touches up to 3TP," he said.

Other modes of transportation

A number of State-Owned Enterprises (BUMN) assigned to public services also ensured that subsidies would not be reduced. They guaranteed that the public would still enjoy subsidies, as before.

PT Pelayaran Nasional Indonesia (Persero) or Pelni, for example, is still implementing the 2025 pioneer ship contract. Its operational budget is available until March 15, 2025 for 30 routes with 30 ships.

"The government through the Ministry of Transportation has given a commitment and asked us to continue operating the assigned ships, including pioneer ships, rede, livestock, and sea tolls until the end of the year," said Pelni Corporate Secretary Evan Eryanto.

The 2023 sea toll network was conveyed by the Director of Traffic and Sea Transportation, Directorate General of Sea Transportation, Ministry of Transportation, Hendri Ginting in an online discussion entitled The Long Road of Rice and Soybeans in Indonesia: Costs and the Role of Regulation in Food Logistics held by CIPS, Wednesday (31/5/2023).

He ensured that there was still no information on changes related to pioneer subsidies, due to budget cuts. As a result, operations in the field are still in accordance with the applicable contract.

Similar things were expressed by Vice President of Public Relations of PT Kereta Api Indonesia (Persero) or KAI Anne Purba. The public service obligation (PSO) contract in the form of subsidies is still being implemented. Until now, there has been no change in the amount of the subsidy, so the price of train tickets is still the same.

"Now, we are still using the operating costs and the rates are PSO rates and passenger rates. Next, what it will be like, will definitely be informed," said Anne.

At the same time, KAI is also testing electric rail trains (KRL) whose fleet has just been imported from China. At least KAI through PT Kereta Commuter Indonesia in collaboration with CRRC Qingdao Sifang Co., Ltd. has agreed to import 11 trainsets.

In the first semester of 2025, the train sets from CRRC will start arriving gradually. Then, the trains made by PT Industri Kereta Api (Persero) or Inka will start to be received gradually as well.

"When can this train operate? After going through a joint trial with the Directorate General of Railways or DJKA Kemenhub for 4,000 kilometers (km), then it can serve customers. If DJKA says it can't run, then it won't run," said Anne.

Vice President of Public Relations of PT Kereta Api Indonesia (Persero) or KAI Anne Purba when answering journalists' questions in Jakarta, Wednesday (12/2/2025).

The 4,000 km figure applies to the first train that comes out of the factory. After passing, the same train - unchanged in shape and specifications - will still be tested for 2,000 km. Then, static and dynamic tests will be carried out.

"If there are no more problems, for example everything runs smoothly, hopefully in semester 2-2025 (it will start operating)," said Anne.

Inflation on 3TP

Subsidies for pioneer transportation need to be prioritized in the government budget. Because, the funds support the stability of inflation in the regions. Budget cuts risk boosting regional inflation, especially in areas with difficult transportation access.

The Central Statistics Agency (BPS) report shows that Jayawijaya Regency and Papua Pegunungan Province are the two regions that experienced the highest inflation increase in January 2025 compared to last year in the same period. Inflation growth in both places reached 4.55 percent. The figure is far above the national annual inflation of 0.36 percent.

A maritime lecturer at the Sepuluh Nopember Institute of Technology (ITS) Surabaya, Raja Oloan Saut Gurning, suggested that pioneer transportation (sea toll, livestock transportation, rede transportation, ferry transportation) needs to be provided. This is because the users of these transportation are the most vulnerable people affected by this budget cut.

"The sea pioneer transportation subsidy cushion is the main and basic economic capital for the national archipelago community, especially on the issue of ship space, connectivity, food security, and price impacts (inflation). The staple food group is important for this 3TP region," said Saut.

Illustration: Kapuas River transportation activities at the Seng Hie Inland Pier, Pontianak City, West Kalimantan, Saturday (16/10/2021).

Deputy Chairman of Empowerment and Regional Development of the Indonesian Transportation Society (MTI) Center Djoko Setijowarno said that the pioneer transportation budget in the Ministry of Transportation's Budget Implementation List (Dipa) was completely cut. In fact, the allocation is for all dimensions.

He questioned the access of 3TP communities who are highly dependent on pioneer transportation. When transportation is not available, access to education and health is also threatened to be cut off.

"Poverty is neatly maintained, never made accessible. It's a shame that the transportation subsidy for pioneers has decreased," said Djoko.

Public Company (Perum) Damri, for example, was reportedly forced to reduce 13 routes from around 300 transportation routes. Instead of being added, the routes were actually reduced. Overall, Perum Damri serves more than 600 routes until 2023. As many as 330 of these routes are pioneer routes, around 100 routes are in Papua. These routes are passed by 597 vehicles in 32 provinces.

The pioneering budget for Damri's assignment does not even touch Rp 200 billion per year. The nominal is far different from the PSO of Jabodetabek KRL which reaches Rp 1.6 trillion in 2023.

Illustration of Damri Bus in Papua

He recommended that during certain times, such as holidays, the Jabodetabek KRL subsidy not be implemented. This is because the majority of passengers only use it for pleasure. This way, the government can divert about a third of the PSO budget or IDR 533.3 billion. The funds can be diverted to support pioneer transportation in remote areas. Pioneer transportation outside Java can increase routes by 2-3 times.

"It's also time to raise the cost of KRL. The minimum wage for workers has also continued to increase since 2016, and the train service is also good. It's okay to raise it so that (the subsidy) for KRL can be diverted to pioneer transportation, including to transmigration areas," said Djoko.


Credits

Writer:

Yosepha Debrina Ratih Pusparisa
 | 

Editor:

Muhammad Fajar Marta