Government, parliament and state ferry operator seek funding solution to maintain subsidized transport services, with operations resuming in East Nusa Tenggara while longer-term public service financing is prepared
Indonesia’s government has agreed to secure funding for subsidized pioneer ferry services that connect remote and border regions after existing budget allocations proved insufficient to sustain operations through the end of 2026.
The decision followed a coordination meeting involving Deputy House Speaker Sufmi Dasco Ahmad, Minister of State Secretary Prasetyo Hadi, Transportation Minister Dudy Purwagandhi, Finance Minister Purbaya Yudhi Sadewa, Danantara Chief Operating Officer Dony Oskaria and state-owned transport operators, including PT ASDP Indonesia Ferry (Persero).
The meeting focused on ensuring the continuity of transportation services to underdeveloped, frontier, outermost and border regions, known in Indonesia as 3TP areas, where ferry links provide essential access to public services and goods.
“The government, together with the House of Representatives, is committed to ensuring the continuity of pioneer services so that the public continues to have reliable access to transportation,” Prasetyo Hadi said. He added that the government would follow up on operators’ funding requirements through existing mechanisms while seeking solutions for other public transport services.
The discussions came after operators warned that the current subsidy allocation would not be sufficient to finance pioneer transport services until the end of the year.
ASDP President Director Heru Widodo said the company had proposed additional government support to maintain services through year-end and recommended replacing the current subsidy mechanism with a Public Service Obligation (PSO) scheme, which he said would provide more predictable and sustainable funding.
“Pioneer services are not only about connecting islands, but also supporting public mobility, logistics distribution, education, healthcare and economic activity,” Heru said. “Their sustainability is therefore a shared responsibility.”
Deputy House Speaker Sufmi Dasco Ahmad said maintaining transportation services in 3TP regions was essential to supporting the government’s development priorities and called for close coordination among the Ministry of State Secretariat, the Ministry of Transportation and the Ministry of Finance to resolve funding issues.
Transportation Minister Dudy Purwagandhi welcomed the resumption of ASDP’s pioneer ferry operations in East Nusa Tenggara while contract adjustments and government funding arrangements are being completed. He also supported transitioning the subsidy mechanism to a PSO scheme to improve long-term service certainty.
Three ASDP-operated vessels resumed scheduled services on Monday in East Nusa Tenggara. KMP Ile Mandiri serves the Kalabahi–Bakalang–Baranusa–Adonara–Lewoleba–Solor–Larantuka route, while KMP Namparnos operates between Kalabahi, Pura, Teluk Gurita and Maritaing. KMP Ile Ape serves the Kewapante–Pulau Besar route.
Operations of KMP Uma Kalada, which serves the Sabu–Raijua–Waingapu route, remain temporarily suspended following an extreme weather advisory issued to ensure passenger safety.
Finance Minister Purbaya Yudhi Sadewa said the government, in principle, supports efforts to meet funding requirements for pioneer transport services after reviewing the operational challenges. Danantara also backed strengthening pioneer services and the proposed adoption of a PSO financing scheme.
Commission V of the House of Representatives, which oversees transportation and infrastructure, also expressed support for maintaining transport services in remote regions.
Heru said continued government backing would be critical to ensuring ferry services remain available to isolated communities across the Indonesian archipelago.
“ASDP will continue working with the government and other stakeholders to provide safe, reliable and sustainable ferry services that support equitable development and economic growth across Indonesia,” he said.