The Ministry of Finance Disburses IDR 7.5 Trillion in Subsidies for Economy Class Transportation

Armfalcon.com, JAKARTA– The Ministry of Finance has allocated funds of IDR 7.5 trillion as public service obligations for rail and sea transportation for the 2023 period. The allocation also includes a reduction in fares or special ticket prices for the 2023 Eid homecoming period.

“The government is back here to provide economy-class transportation throughout 2023 which can be used for homecoming through subsidies/PSO,” wrote the Directorate General of Budget, Ministry of Finance, quoted via the official Instagram @ditjenanggaran, Friday (28/4/2023).

Public service is a government policy by providing affordable rates/price for the community through the determination of fare/ticket prices, the difference in price of which is the responsibility of the state. Public service for economy-class rail transportation in 2023 will receive a budget of IDR 5.2 trillion with a total target of 297,969 passengers.

While subsidies/public services for economy class sea transportation, the Directorate General of Budget of the Ministry of Finance has allocated a budget of IDR 2.39 trillion with a target of 4,563,272 passengers.

The Directorate General of Budget for the Ministry of Finance has allocated a budget of IDR 9.43 billion for 122,659 people for the Eid special train public service. In 2022 PT Kereta Api Indonesia (Persero) signed a PSO contract for the Economy Train and a 2022 Pioneer Train subsidy of IDR 3.24 trillion with the Ministry of Transportation. In detail, Rp. 3.05 trillion in PSO for the Economy Train and Rp. 186.7 billion in subsidies for the Pioneer Train.