Hoping to Fix the Canggu Traffic Nightmare in 2023

Indonesia is facing a pressing challenge in transportation affordability, with citizens spending a larger portion of their income on transport compared to the global benchmark. According to the Ministry of Transportation (Kemenhub), transport expenses in Indonesia consume 12.46% of household living costs, surpassing the World Bank’s ideal standard of 10%.

“Transportation costs reach 12.46% of the total cost of living, while the ideal standard should not exceed 10%. Such expenses certainly burden the public,” said Risal Wasal, Director General of Transportation Integration and Multimodal at the Ministry of Transportation, in an official statement on Wednesday (Sep 3, 2025), as quoted by CNN Indonesia.

Beyond the high costs, Indonesia also faces a surge in mobility demand. Jabodetabek—the Greater Jakarta area—alone records more than 75 million daily trips, making it one of the busiest urban regions in Southeast Asia. This massive flow of movement adds further strain on the country’s transport system, especially in managing efficiency, affordability, and connectivity.

The Central Statistics Agency (BPS) data also highlights regional disparities in transportation expenses. For instance, residents of Depok spend 16.3% of their monthly living costs on transportation, while those in Bekasi allocate 14%. Major cities like Surabaya (13.6%), Bogor (12.54%), Batam (12.8%), and Jayapura (12.4%) also exceed the World Bank’s recommended threshold. Even Jakarta, despite its relatively developed transport system, shows spending at 11.8%—still above the global benchmark.

Government Push for Integrated Public Transport

To address these challenges, the government is implementing strategies to integrate transportation systems and reduce costs for commuters. One solution already applied in Jakarta is the integrated fare system across Transjakarta, MRT Jakarta, and LRT Jakarta. Under this scheme, passengers pay a maximum fare of USD 0,65 for cross-mode travel within three hours.

“With integrated tariffs and a centralized payment system, the burden can be reduced,” explained Risal.

The Ministry of Transportation plans to expand this integration nationwide, connecting other modes of transport under PT Kereta Api Indonesia, including KAI Commuter and LRT Jabodebek.

Risal emphasized that the integrated tariff policy is just the foundation of a larger vision: Mobility as a Service (MaaS). This concept allows various modes of transportation to be planned, booked, and paid for through a single digital platform.

“The step toward tariff integration is the foundation for a broader concept, namely Mobility as a Service (MaaS). With this approach, people will enjoy easier, cheaper, and more efficient travel,” Risal noted.

The government is also promoting digitalization of payment systems across multiple transport services, ensuring commuters can shift seamlessly between buses, trains, and light rail networks. By streamlining the system, authorities hope to bring down transportation costs while improving convenience and efficiency.

The challenge of high transportation costs in Indonesia is closely tied to rapid urbanization and increasing mobility needs. While integration initiatives such as Transjakarta’s capped fares provide some relief, expanding these models to other regions remains crucial.

Source: CNN Indonesia, Detik

Photo Credit: Tedy Octariawan Kroen/RM

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