Governor to cut taxes, levies for bus owners<\/p>\n
JAKARTA (JP): The city's Association of Land Transportation
\nOwners (Organda) canceled on Friday a planned massive strike next
\nweek after Governor Sutiyoso agreed to grant a temporary 50
\npercent discount on taxes and levies.<\/p>\n
After meeting with the governor at City Hall, Organda's head,
\nAip Syaifuddin, said cancellation of the strike had nothing to do
\nwith a threat announced on Thursday by the Jakarta Land
\nTransportation Agency (DLLAJ). The agency pledged to revoke
\npublic transport owners' operational permits if they went ahead
\nwith the strike.<\/p>\n
\"We're not afraid of a permit revocation by DLLAJ,\" he said.<\/p>\n
Aip said the decision was only taken after receiving
\nSutiyoso's subsidy promise.<\/p>\n
He said the governor's offer however, did not appease Organda
\nmembers.<\/p>\n
\"(The subsidy is) still too small and won't cover our
\noperational costs. We therefore will still ask city council to
\napprove our proposal to hike the bus fares.\"<\/p>\n
Sutiyoso said the temporary subsidy scheme would become
\neffective beginning on Friday next week at the latest.<\/p>\n
\"I just intend to give the bus companies energy to 'breathe'.
\nBut it's a temporary package. It would no longer be effective
\nshould the (economic) situation become normal again,\" the
\ngovernor said.<\/p>\n
The 50 percent cut would include cuts to vehicle tax, import
\ntax on vehicle spare parts and levies of route permits, Sutiyoso
\nsaid.<\/p>\n
He said he would soon meet with Minister of Finance Bambang
\nSubianto to ask the latter's ministry office to cut the import
\ntax of bus spare parts.<\/p>\n
He said city-owned Bank DKI would also help bus firms by
\nproviding them with soft loans.<\/p>\n
Councilors<\/p>\n
Aip also aired Organda's concern over the city councilors'
\nrejection of a proposal to hike bus fares without discussing the
\nmatter further with related parties, such as Organda, DLLAJ and
\nthe executive body.<\/p>\n
Metro Mini's operational director Johannes Damanik said he was
\nupset with the councilors' rejection of the proposal, saying that
\nthe councilors were \"inconsistent\".<\/p>\n
\"In our recent meeting with the councilors, they said they
\nagreed with the fare hike. But later they rejected it,\" Damanik
\nsaid.<\/p>\n
Head of the Kopaja bus cooperative, Putu W. Antara, said the
\ncouncilors were attempting to regain popularity with the public.<\/p>\n
\"They just don't want to lose face,\" Putu said.<\/p>\n
In their personal capacities, the councilors repeatedly
\nrejected the bus fare hike proposal, saying the public would
\nsuffer from such a move.<\/p>\n
They however suggested the city administration provide
\nsubsidies to the bus firms, a suggestion similar to one proposed
\nby members of the last council.<\/p>\n
The city administration earlier rejected subsidies, saying
\nthat it would reduce the city's income by Rp 7 billion a year.<\/p>\n
The city administration earlier proposed a fare increase of Rp
\n200 for regular buses, minibuses, limited seat (Patas) buses and
\nair-conditioned Patas buses. The student fare for regular buses
\nwas to be doubled to Rp 200.<\/p>\n
At least 2,100 privately owned buses -- among 2,675 buses
\nserving 555 routes in the city each day -- had planned to
\nparticipate on Monday in a strike to press their demands on the
\nbus fare issue. (jun)<\/p>",
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