Minister of Transportation: The Impact of Fuel Increase on Transportation Is Not Significant


The fuel oil price increase (BBM) is predicted to increase the price of goods and services, one of them is transportation. However, the Minister of Transportation, Budi Karya Sumadi, said that the impact of the increase on the economy class sea, air and rail transportation modes is not too significant.

The Minister of Transportation said that especially in the air transportation sector, there was a downward trend in air ticket prices at certain times. This condition is a good thing during rising fuel prices and the impact on the land transportation sector.

“The impact of the increase in subsidized fuel prices on the economy class sea, air and train transportation modes is not too significant,” said the Minister of Transportation in an official statement quoted on Tuesday (6/9/2022).

Although the impact of the increase in subsidized fuel is not significant for the three transportation sectors in the economy class, the Minister of Transportation said that a study on tariffs is still being carried out and will be announced shortly.

He also explained the steps taken by the Ministry of Transportation to deal with the impact of rising fuel prices for the transportation sector, following the announcement of the implementation of the policy of diverting fuel subsidies for more targeted assistance by the President of the Republic of Indonesia Joko Widodo on Saturday (3/9/2022).

The Minister of Transportation claimed to have coordinated with Ministries/Agencies, including local governments, and stakeholders. He also listened to suggestions and input from various parties.

Budi said that the fuel component is fairly large in transportation service operations, ranging from 11-40 percent, so various adjustments must be made.

On the other hand, he is also aware of the impact of fuel price adjustments on inflation.

As a follow-up, the Ministry of Transportation will adjust the tariff for economy class public transportation, especially on land transportation modes. The study that will be carried out is related to economic passenger tariffs for inter-city inter-provincial transportation (AKAP).

“The amount of the tariff will be determined by the study we are doing, and the results will be announced soon,” he said.

Previously, Chairman of the Land Transport Organization (Organda) Adrianto Djokosoetono explained that land transportation will respond to the increase in fuel prices by adjusting prices.

This is especially the case for non-economy class transportation or those whose rates are not regulated by the government.

“Depending on the type of transportation, (the increase) could be between 7-25 percent,” said Adrianto, quoted on Monday (5/9/2022).