Enhancing Non-Fare Box Revenue of Light Rail Transit (LRT) in South Sumatra

Rail-based transportation, such as Light Rail Transit (LRT), has emerged as an essential solution to address congestion issues and enhance mobility in urban areas. In this context, Palembang has recorded the fastest growth in transportation in Indonesia. Revenue from tickets (farebox) contributes significantly. However, the financial sustainability of LRT can be explored and enhanced from the potential for non-farebox revenue, which includes advertising, rental of commercial spaces, and collaboration with the private sector. This study indicates that utilizing existing assets can develop a business model, such as additional income streams. Strategies for optimizing non-farebox revenue around LRT stations through space rentals, advertising, and partnerships with small and medium enterprises (UMKM) must be considered to maintain affordable fares while ensuring service quality. Although Palembang's LRT revenue still relies on ticket sales, developing businesses and utilizing assets around the stations are necessary steps to diversify revenue sources. Implementing e-commerce business models in the transportation sector also offers significant potential to enhance non-farebox revenue. This research is expected to provide deep insights and recommendations for LRT management and local government in optimizing revenue sources and improving.. the public transportation user experience in South Sumatra.