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Jakarta-Bandung High-Speed Train Ticket Subsidy Not Suitable Measure to Support the Project: MTI

Translator

Najla Nur Fauziyah

Editor

Laila Afifa

15 August 2023 20:54 WIB

TEMPO.CO, Jakarta - The Head of Railways of the Indonesian transportation organization or MTI, Aditya Dwi Laksana, asserted that subsidizing the ticket for Jakarta-Bandung High-Speed Train (KCJB) is not an appropriate measure to support the project financially. He recommends the government take other measures as financial support for the project.

"What's the [appropriate] financial support? For example, additional state equity participation for the parent company," he said when called on Tuesday, August 15, 2023.

Another form of support that could be given is a soft loan for KCIC, the consortium responsible for the high-speed rail, or a longer concession of up to 50 to 80 years than the usual concessional loan. "For a longer debt repayment period," Aditya explained.

The government could also lax the business permit for KCIC to develop its business and stations. In addition, the government could mark down the prices for some operational instruments of KCJB, namely the electricity and the global system mobile frequency bands.

On the other hand, Aditya assessed that subsidizing the tickets of the bullet train will not be fair. It could prompt protests from passengers of other forms of public transportation, such as Parahyangan trains and travel.

Previously, President Joko "Jokowi" Widodo said the subsidy has been tried with LRT Jabodebek. According to Jokowi, a subsidy is necessary to attract public interest and create affordable mass transportation. "Airport train, TransJakarta, KRL, railways, LRT, MRT, and High-Speed Train, all need to be subsidized," said Jokowi at Dukuh Atas LRT Station, Central Jakarta, on Thursday, August 10, 2023.

As for the number of subsidies, Jokowi relegated the technical decision to Transportation Minister Budi Karya Sumadi. 

Budi Karya has recently explained that the government implemented the subsidies in the form of additional state equity participation for PT KAI. The subsidy has been implemented for 3-4 months. The minister did not reveal the precise number but said that the subsidy lower the ticket prices of the Jakarta-Bandung High-speed Train.

MOH. KHORY ALFARIZI

Editor's Choice: Jakarta-Bandung High-Speed Train Begins Operational Testing for Railcars Ahead its Launch

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