Kemenkeu Revises Regulation on Railway BLU Tariffs

The Government seeks to optimize public services and to adapt to the evolving needs of the national transportation industry by preparing Draft Regulation of the Minister of Finance (“ RPermenkeu ”) on Service Tariffs of the Public Service Agency (Badan Layanan Umum- “ BLU ”) at the Railway Testing Center under the Ministry of Transportation. One of the key provisions in this draft regulation is the establishment of service tariffs, which are divided into two categories: main service tariffs and supporting service tariffs.

“The establishment of these tariffs is expected to serve as a stimulus for increasing Non-Tax State Revenue (“ PNBP ”), which will subsequently be reinvested (looping system) to enhance railway safety facilities,” said an internal source at Hukumonline from the Directorate General of Treasury (“ Ditjen PBN ”) of the Ministry of Finance (“ Kemenkeu ”).

The determination of these service tariffs has taken into account four key aspects, namely: 1) Continuity and development of services; 2) Public purchasing power; 3) Principles of fairness and propriety; and 4) Healthy competition. The regulation also stipulates that non-regular services shall be subject to a minimum tariff of 125% of the standard service tariff, and grants the BLU the flexibility to enter into cooperation agreements with third parties to enhance service quality.