Transport subsidy in fiscal form<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The government says it is preparing a package of subsidies for
\nbus, taxi and train operators around the country to ensure that
\nticket prices do not rise higher than 10 percent.<\/p>\n
Minister of Transportation Hatta Radjasa said after Sunday's
\nCabinet meeting that package would be in the form of subsidies on
\nthe operational costs for transport providers.<\/p>\n
"The subsidy will not be in the form of money disbursed
\ndirectly to drivers or other operators. It will be about reducing
\nthe costs of their operational expenses," he told reporters at
\nthe State Palace.<\/p>\n
"The policy has been created so that drivers and ticketers do
\nnot raise their fares by more than 10 percent because this would
\nspark public protest," he said.<\/p>\n
Hatta said the package would include an exemption on import
\nduties for public vehicles and their spare parts. The government
\nwould also divert more funds into public transportation
\ndepartments to cut down on extortion and other illegal fees.<\/p>\n
"Fuel and illegal fees account about 40 percent of public
\ntransport operators working costs. If we can curb extortion by
\nunscrupulous officials and thugs and make the operation more
\nefficient, the operators will not raise their fees as high," the
\nminister said.<\/p>\n
He said central government had also ordered local
\nadministrations to reduce fees for vehicle registration
\nprocedures, renting terminals and car inspections in a bid to cut
\nthe operational costs of operators.<\/p>\n
Hatta said the ministry had ordered local administrations to
\nimmediately issue an adjustment of fares in locally owned
\ntransport services to prevent the protest.<\/p>\n
"If local administrations cannot agree on the new fares, they
\nshould issue temporary ones instead to prevent uncertainty," he
\nsaid.<\/p>\n
The Jakarta chapter of the Organization of Land Transportation
\nOwners (Organda) had submitted its proposal to Jakarta
\nadministration last week to increase fares more than 10 percent,
\narguing that they had to "take into account other things, like
\nauto parts, lubricant consumption and the salaries of public
\ntransportation crew".<\/p>\n
Jakarta's City Transportation Council is scheduled to meet
\nGovernor Sutiyoso on Monday to discuss on the proposed hike by at
\nleast 13 percent.<\/p>\n
Such move was different from the government's which had
\nalready asked operators of public transportation services not to
\nincrease their fees by more than 10 percent. However, many
\ndrivers had ignored the plea and the reality for most public
\ntransport user was a fare increase of between 20 percent and 35
\npercent.<\/p>\n
The government hoped the package would ease the financial
\nburden on public transportation end users who are not yet
\neligible for low-income assistance funds from the government.<\/p>\n
The government increased fuel prices starting March 1 by an
\naverage of 29 percent. The fuel subsidies were slashed to reduce
\nthe burden on the state budget, encourage more efficient fuel use
\nand prevent fuel smuggling.<\/p>\n
However, the transportation ministry's proposal to exempt
\nimport duty could face a stumbling block from the finance
\nministry.<\/p>\n
Minister of Finance Yusuf Anwar said he was still studying the
\nproposal's impact on public revenue.<\/p>\n
"The import duties exemption will automatically cause losses
\nto the state. We are still calculating the cost, whether the idea
\nis feasible for both the state and the public," he said.<\/p>\n
Bus fares -- Page 8<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/transport-subsidy-in-fiscal-form-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }