Indonesia's High-Speed Rail Subsidy Plan Criticized as Misguided Priority
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PublishedDec 6
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Indonesia's High-Speed Rail Subsidy Plan Criticized as Misguided Priority

AnalisaHub Editorial·December 6, 2025
Executive Summary
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Executive Summary

Key insights and market outlook

The Indonesian government's plan to provide operational subsidies to the Jakarta-Bandung High-Speed Rail (Whoosh) has faced criticism from transportation experts. Critics argue that such subsidies, known as Public Service Obligation (PSO), would be better allocated to more widely used transportation modes like local trains or economy class trains. The controversy highlights the ongoing debate about transportation priorities and subsidy allocation in Indonesia's infrastructure development.

Full Analysis
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Deep Dive Analysis

Controversy Surrounds Indonesia's High-Speed Rail Subsidy Plan

Criticism from Transportation Experts

The Indonesian government's proposal to provide operational subsidies to the Jakarta-Bandung High-Speed Rail (Whoosh) has sparked intense debate among transportation experts. The subsidy, framed as a Public Service Obligation (PSO), is seen as a controversial move given the current transportation landscape in Indonesia.

Arguments Against High-Speed Rail Subsidy

Aditya Dwi Laksana, Chairman of the Transportation Forum for Rail and Intercity Transportation (MTI), argues that PSO funds would be better utilized for more essential transportation services. He suggests that local trains, urban trains, or economy class trains in areas with limited transportation options should be prioritized as they serve a larger portion of the population and are crucial for daily commutes.

Rationale Behind the Criticism

The criticism is rooted in the belief that PSO should be allocated to transportation modes with high utilization and significant social impact. According to Aditya, the current plan misaligns with this principle as the high-speed rail primarily caters to a niche market rather than the broader population. The argument emphasizes that mobility support for the general public should be the priority when allocating such subsidies.

Implications for Transportation Policy

This controversy brings to the forefront the challenges in balancing infrastructure development with public needs. The debate underscores the necessity for a more nuanced approach to subsidy allocation, one that aligns with both developmental goals and the immediate needs of the populace. As Indonesia continues to expand its transportation infrastructure, such discussions will be crucial in shaping the future of the sector.

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Story Info

Published
1 month ago
Read Time
10 min
Sources
1 verified

Topics Covered

Transportasi Kereta ApiSubsidi TransportasiKebijakan Infrastruktur

Key Events

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Rencana Subsidi Kereta Cepat

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Kritik terhadap Alokasi PSO

Timeline from 1 verified sources