Abstract

One of the keys to be successful in transport modeling is indicated by how large the transfence of private users to public transports. The public transport role to solve the problem of traffic jam in urban areas is indisputable. It is undeniable that public transport is a very efficient mode in using road space. For that reason, the sustainability of public transport becomes a necessity that must be achieved. When there is no possible way to minimize the operating cost, the only way is by raising the revenue. The revenue really depends on the number of passengers and not by raising fare, as the fare has been set by the government. This paper attempts to analyze the financial resilience on public transport in Surakarta City i.e. Batik Solo Trans (BST) based on the data of users demand on public transport. This study found that the total of real passengers per year was very few that there were only 87, 908 passengers and the financial loss related to the BST operation was Rp. 291,302,006.00 per year. If it happens continuesly, the sustainability is difficult to maintain, unless the Surakarta Municipal Government is willing to cover the loss. The operation of BST will reach break even point if the number of passengers reach 161,056 people per year.

Highlights

  • According to the Law No 22 of 2009 [1], the Government is responsible to the provision of public transport, to meet community's needs for urban transport and to solve congestion problems in urban areas

  • In his study in Surabaya [2], Tahir concluded that the causes of traffic congestion in the city were due to the low use of public transport, which was 2.64% and the height private car usage (82.83%)

  • Private car users are much more attracted to switch to public transport when the attributes of mass transport services which are regarded as important factors such as the decreasing of travel time, the increasing of comfort and reliability and affordable rates are considered sufficient

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Summary

Introduction

According to the Law No 22 of 2009 [1], the Government is responsible to the provision of public transport, to meet community's needs for urban transport and to solve congestion problems in urban areas. Private car is low travel time, convenient, flexible, reliable and safe, but it costs more. Public transport mode is low-cost but it tends to be inconvenient, less flexible and less reliable, longer travel time and low safety. Public transport is one of the inferior modes, which will be left by the users when their income level increases For this reason, when the economical level of the people in urban area increases, the mode of public transport tends to be not prioritized and people prefer to use private cars [3]. In order that private car users move to public transport, the public transport must be comfortable and short in travel time. This paper purpose is to know how big the limitation of the demand to get the break even point of public transport, and to find the solution of surviving as there are only few passengers

The role of public transport in reducing traffic congestion
Sustainability of public transport
Public transport management
The concept of loss and profit
Concept of cost
Concept of revenue
Research methodology
Case study of financial feasibility of public transport in Surakarta
Findings
Conclusion
Full Text
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