MRT Jakarta to Adopt Japan`s Non Fare Box Business Model

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  • Mass Rapid Transit (MRT) train.

    Mass Rapid Transit (MRT) train.

    TEMPO.CO, Jakarta - Mass Rapid Transit (MRT) Jakarta will adopt the strategy of Japan’s railway operators in gaining profit from non-fare box revenues, which is basically incomes generated outside of train ticket sales.

    Koran Tempo today reported the comparative study studied by MRT Jakarta and a number of Indonesian journalists during a trip to Japan and its stations such as Hakata City, Osaka, and Shinjuku station.

    Last week, Tempo and four other journalists were given the opportunity to study Japan’s railway system and business model.

    The contrast business model upon designing a railway station was stark with those in Indonesia, the three stations mentioned above were filled with digital advertising screens in numerous areas within the station.

    Major railway stations there also housed shopping spots, restaurants, drug stores, up to souvenir shops. This drives a station’s economy, where stations will be packed not only with train passengers, but also those that just want to shop.

    MRT Jakarta Company Secretary Tubagus Hikmatullah said that the non-ticket box business model is hoped to reduce the number of subsidies needed to be provided by the Jakarta administration.

    “Our hope is that this non-fare box revenue model will cover the subsidies and rejuvenate the company itself,” said Hikmatullah in Tokyo. In 2015, non-fare box income from 16 of Japan’s MRT operators amounted to 68.8 percent with ticket revenues only generating 31.2 percent of its income.