Public Service Subsidi for KAI to Reach Rp4.79 Trillion in 2025

The Indonesian government has allocated Rp7.96 trillion (approximately US$530 million) in the 2025 Draft State Budget (RAPBN) for Public Service Obligation (PSO) subsidies. This represents a 0.9% increase compared to the Rp7.88 trillion (approximately US$525 million) allocated in the 2024 outlook.

This PSO subsidy budget is intended to improve public services in transportation and public information provision.

According to the 2025 Financial Note, the largest portion of next year's PSO subsidy—Rp4.79 trillion (approximately US$320 million)—will be allocated to PT Kereta Api Indonesia (Persero), or KAI. This funding will be used to improve the quality and service of economy class long-distance, medium-distance, short-distance, Lebaran (Eid al-Fitr) trains, economy class commuter trains (KRD), Jabodetabek Commuter Rail (KRL), Yogyakarta KRL, and the Jabodebek LRT.

The PSO disbursement is accompanied by government requests for KAI to implement several improvements in subsidy management, including:

* Implementing NIK (National Identity Number)-based electronic ticketing for Jabodetabek KRL users.
* Conducting customer satisfaction assessments using a public satisfaction index survey.
* Reducing PSO-assigned train subsidies through a non-ticket revenue calculation scheme.
* Conducting cost-based verification of PSO train operators.

Besides KAI, the 2025 PSO subsidy will also be allocated to PT Pelni (Rp2.97 trillion or approximately US$198 million) and Perum Lembaga Kantor Berita Nasional (LKBN) Antara (Rp184.6 billion or approximately US$12.3 million).

Recently, the proposed implementation of a NIK-based Jabodetabek KRL fare subsidy has sparked public controversy. However, President Joko Widodo (Jokowi) stated he was unaware of the plan.

“I don’t know because there hasn’t been a meeting about it,” Jokowi said in a statement reported by Katadata on Friday, August 30, 2024. He also claimed to be unaware of the field conditions that have fueled public discussion of the proposal. “I don’t yet know what the situation on the ground is like,” he said.