Economy Train Subsidies Scrapped Beginning 2015
30 September 2014 19:56 WIB
TEMPO.CO, Jakarta - State-run railway operator PT Kereta Api Indonesia (PT KAI) will begin selling non-subsidized mid-to-long distance economy train tickets starting October 2, 2014. PT KAI commercial director Bambang Eko Martono said that new prices will be applied for journeys beginning January 1, 2015.
"Starting October 2, we will start selling tickets without passenger service obligation (PSO) subsidies," said Bambang at the office of the Jakarta Railway Centre in Jakarta, September 30, 2014.
According to Bambang, the decision to start selling on October 2 was made in line with KAI's policy that allows it to start selling tickets 90 days before the journey is scheduled.
KAI executive vice president for passenger services Totok Suryono said the removal of subsidies meant prices would increase by more than 100 percent. For example, the price of Kertajaya Train tickets from Surabaya's Pasar Turi Station to Tanjung Priok will increase from Rp50,000 to Rp135,000 beginning January 1, 2014, said Totok.
"Passengers need to remember that KAI will not change the basic price of the ticket. The prices will increase because the government has decided to stop subsidizing the fare," said Totok.
Totok said that the estimation is based on current estimations, and that he believes prices may increase further. The removal of PSO subsidies will affect 11 long-distance economy trains in Java, and a further 12 medium-distance economy trains in Java and Sumatra.
On average, prices are expected to exceed the Rp100,000 mark per one way journey without the subsidies. For example, the prices for Progo trains from Yogyakarta's Lempuyangan Station to Pasar Senen Station in Jakarta will rise to Rp105,000 from Rp50,000, while prices for Matarmaja train tickets will rise from Rp65,000 to Rp150,000. Meanwhile, Tawang Jaya train tickets from Semarang to Jakarta will increase to Rp80,000 from Rp40,000 without government subsidies.
KHAIRUL ANAM
