Bus company tries to stem burden of debt<\/p>\n
JAKARTA (JP): In an urgent attempt to make up for the removal
\nof a government subsidy next month, the state bus company PPD
\nplans to sell some of its bus compounds and increase the daily
\nrental fee charged to drivers.<\/p>\n
The company's spokesman, Suryadi, said on Wednesday that some
\nof its compounds, along with facilities such as workshops, are
\noffered based on the current valuation for taxable assets.<\/p>\n
\"We have approached investors to purchase our 6-hectare bus
\ncompound in Kalideres and our 1.2-hectare site in Jelambar, both
\nin West Jakarta, as well as our 3-hectare site in Cawang, East
\nJakarta,\" Suryadi said.<\/p>\n
He said all of the assets on offer should be sold by the end
\nof the month.<\/p>\n
Suryadi admitted that some of these properties have no
\ncertificates, but the company expects to complete the
\ncertification process by the end of this month.<\/p>\n
He refused to reveal the value of each site on offer.<\/p>\n
In order to generate more revenue, the company, starting from
\nThursday, will increase the daily rental fee for regular buses,
\nfrom the current charge of between Rp 350,000 and Rp 400,000, to
\nan average of Rp 480,000. Meanwhile the rental of air-conditioned
\nbuses will increase from Rp 550,000 to Rp 650,000 per day.<\/p>\n
He said the fees vary because consideration has been given to
\nthe fact that some drivers earn more than the others, depending
\non their route.<\/p>\n
\"It's a difficult decision (to increase the rental fee), as
\nsome employees refuse to follow the new rule. However, our
\nmanagement has reached an agreement with our staff (on
\nWednesday),\" Suryadi said.<\/p>\n
Last week, at least 200 drivers protested the plan to increase
\nthe daily rental fee, saying that they are being treated like
\nmilk cows for the benefit of the company. The protest, however,
\ndid not affect their daily operation as they continued to provide
\nnormal services.<\/p>\n
The bus company serves commuters in Jakarta and surrounding
\nareas with 5,100 staff and 454 operable buses servicing 67 routes
\nacross the capital.<\/p>\n
There are 265 regular and express buses, and 189 air-
\nconditioned buses. The company also rents 19 of its buses to
\nprivate operators. In addition, it has 486 inoperable buses
\ncurrently parked in its 16 bus compounds.<\/p>\n
Suryadi said the government had given its last subsidy,
\namounting to Rp 6 billion for December 2000 and January 2001. The
\nfunds were distributed irregularly, based on the government's
\nbudget and the needs of the company.<\/p>\n
Currently, the company's monthly revenue is about Rp 5 billion
\n(US$ 526,315), while its expenditure is at least Rp 7 billion.<\/p>\n
He hopes that with the increase of rental fees the company
\nwould earn approximately Rp 7.5 billion a month.<\/p>\n
Suryadi said that Rp 3.5 billion is needed to pay the
\nemployees, while another Rp 3.5 billion is required for
\noperational and maintenance costs.<\/p>\n
\"The oversized workforce and growing number of aging vehicles
\nhave been undermining our financial performance, resulting in
\nhuge and seemingly endless debts,\" Suryadi added.<\/p>\n
He said that the number of employees will also be reduced.<\/p>\n
Currently, each bus is operated by at least 10 employees,
\nwhile five people are considered sufficient for the job.<\/p>\n
He added that PPD's management has attempted to gradually
\nreduce its workforce by offering attractive packages for those
\nwho wanted to take early retirement.<\/p>\n
\"Any employee retiring early would receive a golden handshake
\namounting to Rp 25 million,\" Suryadi said.<\/p>\n
The monthly salary of drivers is between Rp 400,000 to Rp
\n700,000.<\/p>\n
\"We also plan to buy about 500 new buses this year, as we have
\nnot purchased any new vehicles since 1997 (when the economic
\ncrisis hit the country),\" Suryadi said. (07)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bus-company-tries-to-stem-burden-of-debt-1447893297",
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