'Less than 20% hike won't affect land transport'<\/p>\n
Rendi A. Witular, The Jakarta Post\/Jakarta<\/p>\n
The Ministry of Transportation has assured the public that there
\nwill not be any increase in tariffs for inter-city land transport
\nif the government does not increase fuel prices by more than 20
\npercent.<\/p>\n
"Inter-city land transport tariffs will not increase following
\nthe fuel price hike, if it is less than 20 percent," minister
\nHatta Radjasa told a press conference on Friday.<\/p>\n
He explained that land transport has a floor price set at Rp
\n60,000 (US$6.50) per 100 kilometers per passenger, and a ceiling
\nprice of Rp 90,000 per 100 km per passenger.<\/p>\n
Speaking on city transportation tariffs, Hatta said that such
\ndecisions would be made by respective local administrations.<\/p>\n
The announcement is deemed necessary because public transport
\nusers will be the ones most affected by the planned fuel price
\nhike, which is slated to be announced before April 1 according to
\nCoordinating Minister of the Economy Aburizal Bakrie.<\/p>\n
Hatta also said that his ministry would also make decisions on
\nany increases in water transport passenger tariffs.<\/p>\n
But State Minister of National Development Planning Sri
\nMulyani Indrawati said later that the fuel price hike would lead
\nto a rise in all tariffs for transport by between 15 percent and
\n20 percent.<\/p>\n
She also said that fuel prices would in all likelihood be
\nraised by 30 percent on average.<\/p>\n
The National Development Planning Board, of which Mulyani is
\nthe chairwoman, is responsible for studying options to reduce the
\ngovernment's oil subsidy burden, including calculating fuel price
\nhikes.<\/p>\n
The government has already raised the retail price of high
\nquality gasoline brands Pertamax and Pertamax Plus to Rp 4,000
\nper liter and Rp 4,200 per liter, or by 63.3 percent and 52.7
\npercent, respectively, on Dec. 19.<\/p>\n
Surging global oil prices cost the government Rp 62.8 trillion
\nin fuel subsidies last year.<\/p>\n
Increases in fuel prices will eventually cause prices of other
\ncommodities to increase.<\/p>",
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