Will Indonesia's Bus Subsidy Be Sustainable?

Abstract

The subsidies for public transport entails a controversial discussion on the pros and cons. On one hand mode share of public transport will decrease with increasing income levels towards private motor vehicle use. Intention of this paper is to prove that subsidy plays important role in the public transport operation and business. However such subsidy is not recover he needs to carry out the sustainable urban transport in the future. Government and private partner should create a systematic subsidy targeted for the right modes, that having sustainable achievement. This paper is structured to answer to what extent the effectiveness of government subsidies for the case of developing country.