2020 Budget Deficit; Jakarta Cuts Transport Subsidy by Rp1.2tn

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Laila Afifa

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  • TEMPO.CO, Jakarta - The Jakarta government has decided to cut the transportation subsidy budget for next year from Rp6.7 trillion to Rp5.5 trillion, or by Rp1.2 trillion. The administration had to resort to trimming the subsidy to make room for adjustments in the 2020 regional budget ceiling, which is at a deficit of Rp1.3tn. 

    "The first posts that we cuts are subsidies," regional secretary Saefullah said in the Jakarta DPRD joint leaders' meeting Wednesday, November 27.

    Saefullah guarantees that reducing subsidies will not affect transportation services in the capital city. Later, he said, the slashed down subsidy budget will be resubmitted in the 2020 budget changes.

    According to Saefullah, a transportation subsidy budget of just Rp.5.5 trillion is still safe.

    In the KUA PPAS 2020, transportation subsidy funds were distributed to Jakarta's mass rapid transit (MRT) by as much as Rp938.59 billion, Jakarta's light rail transit (LRT) Rp665.07 billion and Transjakarta to Rp5.34 trillion.

    Taufiq Siddiq