The East Java DPRD Highlights Potential Benefits of Establishing a Local-Owned Enterprise (BUMD) of Transportation

The East Java DPRD Encourages Strengthening the Transportation Sector through BUMD

Surabaya – The discourse on establishing a transportation sector Local-Owned Enterprise (BUMD) in East Java continues to gain support from various stakeholders, including the East Java DPRD.

Member of Commission C of the East Java DPRD, Lilik Hendrawati, expressed her support for the initiative, stating that such an entity could strengthen transportation sector management while increasing regional revenue. The statement was delivered by Lilik on Monday (March 9, 2026) in Surabaya.

According to her, transportation management through BUMD has been implemented in several regions, including Jakarta, which can serve as a reference for East Java in developing its regional transportation sector.

“If we look at Jakarta, its transportation system is also managed by a local-owned enterprise (BUMD),” said the Chairperson of the PKS Faction of the East Java DPRD.

East Java Considered to Have Significant Potential

Lilik emphasized that East Java has substantial potential to develop a transportation BUMD, given its vast territory and the high mobility needs of its population in daily activities.

She added that, in the future, a transportation BUMD could manage various transportation services, including land transportation and digital platform-based services.

She cited the possibility of managing online-based transportation services, such as ride-hailing (ojek online), which are widely used by the public.

“Currently, many online motorcycle taxi drivers have raised concerns regarding their status as partners. Therefore, there is a need for clearer governance through stronger regulations,” she explained.

Efforts to strengthen the governance of BUMDs in East Java are also currently a focus of the DPRD through the discussion of various policies related to regional enterprise management.

In addition, the East Java DPRD is conducting studies on BUMD management practices in other regions to enhance their contribution to locally generated revenue (PAD), including reviewing governance models applied in Jakarta.

Transportation BUMD Has the Potential to Create Jobs

Lilik noted that the establishment of a transportation BUMD would not only increase locally generated revenue (PAD) but also create employment opportunities for the people of East Java.

According to her, the transportation sector is a strategic sector that is directly linked to the community’s economic activities.

“If this transportation BUMD is established, the potential for job creation will be significant and is expected to contribute to local revenue,” she stated.

Meanwhile, Head of the East Java Transportation Agency, Nyono, explained that the establishment of a transportation BUMD must comply with licensing requirements based on the specific business sectors it operates in.

According to him, each transportation sector requires its own business license.

“A transportation BUMD must obtain permits in accordance with its field of operation. If it manages ports or airports, it must have an airport business entity license. Likewise, land transportation operations must have a land transportation business license,” he explained.

The East Java DPRD also continues to evaluate the performance and contributions of BUMDs to ensure that regional enterprises provide optimal benefits for the public and regional development.