Prioritising Budget Allocation for A Better Public Transport in Pekanbaru

28 August 2023

Recognising the rapid urbanisation and growing need for mobilisation services in urban areas, the Government of Indonesia has made mass public transport for metropolitan areas one of the major projects in the National Medium Term Development Plan (RPJMN) 2020-2024. To complement the government’s initiatives on their priority cities, SUTRI NAMA & INDOBUS has also been providing support for the government in achieving sustainable public transport through the development of the Bus Rapid Transit (BRT) system in six pilot cities, namely Bandung, Batam, Makassar, Pekanbaru, Semarang, and Surabaya. Pekanbaru, in particular, is making significant strides in improving its public transport system by addressing one of the common struggles faced by city governments, which is the limitation of budget allocation for sustainable public transport initiatives. To assist Pekanbaru in solving this issue, SUTRI NAMA & INDOBUS has developed a comprehensive study to provide a concept for municipal budget allocation toward public transport, particularly for the BRT system of Transmetro Pekanbaru.

The study includes economic, legal, and demand projections, offering valuable insights and recommendations to overcome budgetary constraints. Lessons learned from other cities are also included in the study, such as the need for a clear division of roles and involvement between municipal government as a regulator and regional owned enterprise as an operator and increasing regional or city state budget (Anggaran Pendapatan Belanja Daerah/APBD) support for the operational allocation and development of the Transmetro Pekanbaru, among others. The latter especially needs to be brought to attention, considering public transport is not yet clearly included in the mandatory spending of APBD.

In brief, the calculation of adjustment of the budget is based on the combination of subsidy, depreciation, installment, and/or investment as the component. This measure should be executed within an enabling environment with national or regional laws that reinforce the budgeting of the transport sector, intersectional collaboration, and mainstreaming mass public transport issues to name a few.

Representatives of SUTRI NAMA & INDOBUS with Mr. Yuliarso, the Head of Pekanbaru Transport Agency during the handing of the study (Copyright: SUTRI NAMA & INDOBUS)
Representatives of SUTRI NAMA & INDOBUS with Mr. Yuliarso, the Head of Pekanbaru Transport Agency during the handing of the study (Copyright: SUTRI NAMA & INDOBUS)

Recognising the rapid urbanisation and growing need for mobilisation services in urban areas, the Government of Indonesia has made mass public transport for metropolitan areas one of the major projects in the National Medium Term Development Plan (RPJMN) 2020-2024. To complement the government’s initiatives on their priority cities, SUTRI NAMA & INDOBUS has also been providing support for the government in achieving sustainable public transport through the development of the Bus Rapid Transit (BRT) system in six pilot cities, namely Bandung, Batam, Makassar, Pekanbaru, Semarang, and Surabaya. Pekanbaru, in particular, is making significant strides in improving its public transport system by addressing one of the common struggles faced by city governments, which is the limitation of budget allocation for sustainable public transport initiatives. To assist Pekanbaru in solving this issue, SUTRI NAMA & INDOBUS has developed a comprehensive study to provide a concept for municipal budget allocation toward public transport, particularly for the BRT system of Transmetro Pekanbaru.

The study includes economic, legal, and demand projections, offering valuable insights and recommendations to overcome budgetary constraints. Lessons learned from other cities are also included in the study, such as the need for a clear division of roles and involvement between municipal government as a regulator and regional owned enterprise as an operator and increasing regional or city state budget (Anggaran Pendapatan Belanja Daerah/APBD) support for the operational allocation and development of the Transmetro Pekanbaru, among others. The latter especially needs to be brought to attention, considering public transport is not yet clearly included in the mandatory spending of APBD.

In brief, the calculation of adjustment of the budget is based on the combination of subsidy, depreciation, installment, and/or investment as the component. This measure should be executed within an enabling environment with national or regional laws that reinforce the budgeting of the transport sector, intersectional collaboration, and mainstreaming mass public transport issues to name a few.

Representatives of SUTRI NAMA & INDOBUS with Mr. Yuliarso, the Head of Pekanbaru Transport Agency during the handing of the study (Copyright: SUTRI NAMA & INDOBUS)

To ensure the embedding of the study in the first regional regulation (Perda) dedicated to mass public transport in Pekanbaru, on 19 June 2023, SUTRI NAMA & INDOBUS held a courtesy meeting with Pekanbaru Transportation Agency to present and handover the result of the study. The head of Pekanbaru’s Transportation Agency has expressed appreciation for SUTRI NAMA & INDOBUS’ assistance and has committed to presenting the findings to the regional representative council (DPRD). This commitment demonstrates their dedication to improving public transport for the benefit of the city’s residents. Thus, this study serves as a stepping stone toward enhancing the public transport system in Pekanbaru. With a focus on prioritising the public transport budget, Pekanbaru is on its way to creating a more sustainable and inclusive urban environment.

The efforts in Pekanbaru serve as an example for other cities facing similar struggles, emphasising the importance of government commitment and collaboration with programmes like SUTRI NAMA & INDOBUS. By prioritising public transport budget allocation, cities can enhance their transport systems and provide better mobility options for their citizens.

Link to Further Materials

Contact Person
Puput Pradani Aliya Rashati

Key Buzzwords
Sustainable, Transport, Infrastructure, Indonesia, Urban, Mobility, BRT