Planned toll road tariff hike cricitized<\/p>\n
Annastashya Emmanuelle, The Jakarta Post, Jakarta<\/p>\n
State-owned toll road operator PT Jasa Marga's plan to
\nincrease toll road tariffs by as much as 40 percent, in order for
\nthe company to avoid bankruptcy, should be delayed pending
\namendments of several troublesome contracts with private
\ncontractors, the Indonesian Corruption Watch (ICW) said on
\nTuesday.<\/p>\n
The private contractors, many of whom are relatives of former
\nPresident Soeharto, are the main cause for Jasa Marga's loss, due
\nto its troublesome projects and mark ups, according to ICW.<\/p>\n
\"The inefficiency of Jasa Marga is caused by the inability for
\nthe company to be independent which is related to the fact that
\nthey are heavily influenced by very powerful people who, may not
\nbe the best people for the business,\" claimed the head of the
\ninvestigation division of the ICW, Irfan Muktiono.<\/p>\n
The comments came on the sidelines of a meeting to discuss a
\ntariff rise for customers using the toll roads.<\/p>\n
The director of PT Jasa Marga, Sjarifuddin Alambai, indeed
\nconfirmed that the company would increase tariffs, which
\ncurrently range from Rp 500 to Rp 4,000, in order for the company
\nto survive. The hike is scheduled to be put into effect after it
\nis discussed with the Peoples Consultative Assembly (MPR) in
\nJanuary 2002.<\/p>\n
The last hike of the toll road tariffs was in 1996.<\/p>\n
According to ICW, most notable among the unfair and somewhat
\nsuspect contracts was the one involving PT Citra Marga Nusantara
\nPersada (CMNP) owned by Siti Hardianti Rukmana, Soeharto's eldest
\ndaughter. The contract is for the harbor toll road from Tomang to
\nTanjung Priok, in which CMNP receives 75 percent of the toll road
\nrevenues.<\/p>\n
Meanwhile, CMNP has not fulfilled its responsibility as
\nstipulated in the original proposal and contract. For instance,
\nthe width of the toll road was agreed to be 3.5 meters per lane
\nin the contract, however they only built it 3.25 meters, while
\ntaking all the money and in effect shortchanging the public.<\/p>\n
Citra Marga Nusantara Persada also received the toll road
\nrevenues earlier than agreed. It received Rp 42 billion in 1990
\neven though it was not scheduled to do so until 1994.<\/p>\n
The payment arrangement, which has hurt Jasa Marga's financial
\ncondition, was formalized with the joint decree issued by the
\nMinister of Public Works and the Minister of Finance
\nNo.524\/KPTS\/1989 and No.1216\/KMK.013\/1989 that was put into
\neffect in November 1989.<\/p>\n
Another example of ineffectiveness that cheated taxpayers is
\nwhen Jasa Marga decided to compensate the losses incurred by the
\nconstruction group, which was awarded the contract, after it had
\nlost money in foreign currency exchange rates, while importing
\ncertain materials.<\/p>\n
The company, PT Arthayasa Karya Bina Caraka, is owned by
\nRasich Hanif Radinal, son of the former Minister of Public Works,
\nRadinal Mochtar. The public was again made to take the brunt of
\nthe illegal subsidy -- for the supposedly private company -- to
\nthe tune of Rp 90.8 billion.<\/p>\n
The director of PT Jasa Marga, Sjarifuddin Alambai,
\nacknowledged the loss caused by the company's fraudulent dealings
\nwith its private contractors, but amending the profit sharing
\narrangements would require the revocation of the ministerial
\ndecrees, he said.<\/p>\n
As for the business arrangement with CMNP, Sjarifuddin said
\nthat they had met with a delegation from the company to re-
\nnegotiate the terms.<\/p>\n
\"Hopefully CNMP will be able to reach an agreement with us,\"
\nhe commented.<\/p>\n
Meanwhile, the Indonesian Consumer Foundation (YLKI)
\ncriticized the price hike, saying that Jasa Marga has often
\nfailed to provide adequate service to the consumer and prices
\nshould be lowered, or, failing that, the quality must be raised
\nin conjunction with any hike.<\/p>\n
\"Increasing the toll road tariff ideally should be accompanied
\nby the increase of service and quality. Can Jasa Marga promise to
\nprovide better service instead of just making the consumer pay
\nfor the ineffective management of the company?\" Indah
\nSuksmaningsih, the chairwoman of YLKI asked.<\/p>",
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