"PT KAI (the railway company) has received a subsidy of Rp704.7 billion under the revised 2013 state budget. The fund will be used to develop infrastructures and services," he said after a coordination meeting to discuss preparations for religious holidays at the coordinating ministry for economic affairs here.
The disbursement of subsidy for the railway company had received a seal of approval from the House Commission V, he said.
"So there will be no electric train fare hike. Meanwhile, the government has also given a subsidy of Rp4,000 per kilometer to every long-distance train passenger," he said.
Earlier, PT KAI President Director Ignatius Jonan said with the subsidy, all electric trains would be equipped with air conditioners, while the service of economic class medium-and long distance trains that had been equipped with air conditioners would be improved in stages.
"The disbursement of subsidy for economic class electric trains is a great landmark in improving public transportation services," he said.
PT KAI halved the tariffs of its commuter lines in and around Jakarta as of July 1, 2013.
(Reporting by Royke Sinaga/Uu.S012/F001)