By: Fena Yuninda)*
The Indonesian government continues to show consistency in safeguarding public welfare through a range of policies that directly address the needs of the wider population. One of the most concrete demonstrations of this commitment is the provision of transportation stimulus in the form of fare discounts across multiple transport modes. This step is a measured strategy to strengthen household purchasing power—particularly during the mid-year school holidays, a key period for domestic mobility.
The transportation discounts rolled out in June and July 2025 are not mere populist gestures, but rather strategic decisions taken in consideration of global economic pressures and domestic dynamics. The government has allocated IDR 940 billion specifically for the transportation sector, which includes fare reductions on trains, flights, ferries, and crossings. This effort is seen as highly effective in stimulating household consumption, the main driver of national economic growth.
Minister of Transportation Dudy Purwagandhi stated that the stimulus aims to boost public mobility during the school holiday season. Train ticket discounts reach up to 30%, benefiting over 3.5 million passengers. In the aviation sector, the government is covering 6% Value Added Tax (VAT) for six million air travelers. Meanwhile, the sea and ferry transport sectors are also receiving full support through tariff reductions, covering more than 1.4 million passengers.
This policy not only helps the public access more affordable transportation services but also serves as a catalyst for other economic sectors—such as tourism, trade, and small enterprises. As public mobility increases, the economic multiplier effect emerges naturally, from higher consumption to the creation of informal job opportunities.
Moreover, the government’s commitment extends beyond transport discounts. A broader stimulus package amounting to IDR 24.44 trillion has been comprehensively prepared. It includes additional social assistance such as food aid cards and staple food support for over 18 million families, wage subsidies for low-income workers, and toll discounts of up to 20% benefitting 110 million vehicle users.
The toll discounts apply to several key segments of the Trans-Java and Trans-Sumatra toll roads. Jasa Marga CEO Rivan Achmad Purwantono explained that the policy will be implemented during three key periods: the Eid al-Adha holiday, the beginning of school holidays, and the end of the holiday season. This timing ensures the discounts reach the widest segment of travelers during peak traffic periods, without restricting vehicle types.
From the legislative side, the government policy has received praise for directly addressing the needs of the people. Charles Meikyansah, member of the House of Representatives’ Commission XI, believes that the government’s move to provide transportation discounts is a key effort to safeguard purchasing power, which has been under pressure due to economic challenges. He noted that the stimulus will have a significant impact on the informal sector, including small businesses and local tourism operators who rely on high public mobility.
Charles also emphasized the importance of ensuring the sustainability of such policies. He believes that while short-term stimulus is very helpful, it must be followed by medium-term strategic initiatives. In this regard, strengthening productive sectors such as agriculture and MSMEs should be prioritized so that the stimulus generates lasting economic momentum and resilience.
For the middle class in particular, the government’s attention through these stimulus efforts sends a positive signal. This group, traditionally the backbone of domestic consumption, has begun to show vulnerability due to layoffs and income pressure. Therefore, the government’s inclusive policies—such as toll and air travel discounts—should be viewed as efforts to reinforce the foundation of national economic stability.
From a fiscal standpoint, this policy also reflects adaptive budget management. Of the IDR 24.44 trillion allocated for the stimulus, around IDR 23.59 trillion comes from the national budget (APBN), while the rest is funded through non-APBN mechanisms. This demonstrates that pro-people policies can still be implemented without unduly burdening state finances, all while maintaining fiscal discipline.
The effectiveness of this program will be measured by the increase in household consumption during the second quarter of 2025. The government targets near 5% economic growth, with the transportation stimulus serving as a key contributor to this goal. As travel activities rise, supporting sectors will also benefit—especially small businesses in tourist destinations that depend on domestic visitors.
Overall, the government’s provision of transport discounts exemplifies people-centered leadership. It not only makes travel more affordable but directly addresses citizens’ real needs during uncertain economic times. While many countries are still recalibrating their fiscal and monetary strategies, Indonesia has shown speed and precision in responding to public demands.
Through synergy among technical ministries, transportation operators, and legislative support, the transportation discount program proves that the government is not merely present in rhetoric, but tangibly present in the daily lives of the people. This policy underscores the government’s alignment with the people—especially in challenging times—and its enduring commitment to balancing economic growth with social equity.
*) The author is a transportation analyst.