Mon, 07 Mar 2005

Transport subsidy in fiscal form

Rendi A. Witular, The Jakarta Post, Jakarta

The government says it is preparing a package of subsidies for bus, taxi and train operators around the country to ensure that ticket prices do not rise higher than 10 percent.

Minister of Transportation Hatta Radjasa said after Sunday's Cabinet meeting that package would be in the form of subsidies on the operational costs for transport providers.

"The subsidy will not be in the form of money disbursed directly to drivers or other operators. It will be about reducing the costs of their operational expenses," he told reporters at the State Palace.

"The policy has been created so that drivers and ticketers do not raise their fares by more than 10 percent because this would spark public protest," he said.

Hatta said the package would include an exemption on import duties for public vehicles and their spare parts. The government would also divert more funds into public transportation departments to cut down on extortion and other illegal fees.

"Fuel and illegal fees account about 40 percent of public transport operators working costs. If we can curb extortion by unscrupulous officials and thugs and make the operation more efficient, the operators will not raise their fees as high," the minister said.

He said central government had also ordered local administrations to reduce fees for vehicle registration procedures, renting terminals and car inspections in a bid to cut the operational costs of operators.

Hatta said the ministry had ordered local administrations to immediately issue an adjustment of fares in locally owned transport services to prevent the protest.

"If local administrations cannot agree on the new fares, they should issue temporary ones instead to prevent uncertainty," he said.

The Jakarta chapter of the Organization of Land Transportation Owners (Organda) had submitted its proposal to Jakarta administration last week to increase fares more than 10 percent, arguing that they had to "take into account other things, like auto parts, lubricant consumption and the salaries of public transportation crew".

Jakarta's City Transportation Council is scheduled to meet Governor Sutiyoso on Monday to discuss on the proposed hike by at least 13 percent.

Such move was different from the government's which had already asked operators of public transportation services not to increase their fees by more than 10 percent. However, many drivers had ignored the plea and the reality for most public transport user was a fare increase of between 20 percent and 35 percent.

The government hoped the package would ease the financial burden on public transportation end users who are not yet eligible for low-income assistance funds from the government.

The government increased fuel prices starting March 1 by an average of 29 percent. The fuel subsidies were slashed to reduce the burden on the state budget, encourage more efficient fuel use and prevent fuel smuggling.

However, the transportation ministry's proposal to exempt import duty could face a stumbling block from the finance ministry.

Minister of Finance Yusuf Anwar said he was still studying the proposal's impact on public revenue.

"The import duties exemption will automatically cause losses to the state. We are still calculating the cost, whether the idea is feasible for both the state and the public," he said.

Bus fares -- Page 8





News Search/Filter
Transaction Rates
19 Jul 18
Buy
Sell
AED1
3,890.32
3,890.32
AFN1
196.14
196.14
ALL1
131.98
131.98
AMD1
29.76
29.76
ANG1
7,743.66
7,743.66
AOA1
56.27
56.27
ARS1
517.34
517.34
AUD1
10,572.38
10,572.38
AWG1
7,989.84
7,989.84
AZN1
8,393.46
8,393.46
BAM1
8,489.41
8,489.41
BBD1
7,144.93
7,144.93
BDT1
169.07
169.07
BGN1
8,499.80
8,499.80
BHD1
37,757.65
37,757.65
BIF1
8.06
8.06
BMD1
14,289.87
14,289.87
BND1
10,490.23
10,490.23
BOB1
2,067.58
2,067.58
BRL1
3,710.95
3,710.95
BSD1
14,289.87
14,289.87
BTC1
104,590,128
104,590,128
BTN1
208.17
208.17
BWP1
1,387.31
1,387.31
BYN1
7,182.67
7,182.67
BZD1
7,107.80
7,107.80
CAD1
10,851.01
10,851.01
CDF1
8.85
8.85
CHF1
14,306.82
14,306.82
CLF1
601,425.67
601,425.67
CLP1
21.88
21.88
CNH1
2,118.68
2,118.68
CNY1
2,126.91
2,126.91
COP1
4.98
4.98
CRC1
25.19
25.19
CUC1
14,289.87
14,289.87
CUP1
560.38
560.38
CVE1
150.41
150.41
CZK1
643.64
643.64
DJF1
80.28
80.28
DKK1
2,232.74
2,232.74
DOP1
287.04
287.04
DZD1
121.15
121.15
EGP1
798.38
798.38
ERN1
950.08
950.08
ETB1
514.57
514.57
EUR1
16,641.30
16,641.30
FJD1
6,833.16
6,833.16
FKP1
18,688.29
18,688.29
GBP1
18,688.29
18,688.29
GEL1
5,832.20
5,832.20
GGP1
18,688.29
18,688.29
GHS1
2,982.84
2,982.84
GIP1
18,688.29
18,688.29
GMD1
297.58
297.58
GNF1
1.57
1.57
GTQ1
1,907.42
1,907.42
GYD1
68.31
68.31
HKD1
1,820.63
1,820.63
HNL1
595.02
595.02
HRK1
2,250.40
2,250.40
HTG1
211.71
211.71
HUF1
51.30
51.30
IDR1
1.00
1.00
ILS1
3,929.36
3,929.36
IMP1
18,688.29
18,688.29
INR1
208.65
208.65
IQD1
11.98
11.98
IRR1
0.32
0.32
ISK1
133.73
133.73
JEP1
18,688.29
18,688.29
JMD1
108.92
108.92
JOD1
20,140.68
20,140.68
JPY1
126.67
126.67
KES1
142.13
142.13
KGS1
209.47
209.47
KHR1
3.52
3.52
KMF1
33.79
33.79
KPW1
15.87
15.87
KRW1
12.62
12.62
KWD1
47,164.10
47,164.10
KYD1
17,143.63
17,143.63
KZT1
41.40
41.40
LAK1
1.69
1.69
LBP1
9.45
9.45
LKR1
89.39
89.39
LRD1
88.72
88.72
LSL1
1,073.96
1,073.96
LYD1
10,411.70
10,411.70
MAD1
1,507.22
1,507.22
MDL1
856.81
856.81
MGA1
4.25
4.25
MKD1
270.24
270.24
MMK1
9.93
9.93
MNT1
5.85
5.85
MOP1
1,767.00
1,767.00
MRO1
40.19
40.19
MRU1
398.54
398.54
MUR1
413.59
413.59
MVR1
927.30
927.30
MWK1
19.67
19.67
MXN1
755.89
755.89
MYR1
3,520.10
3,520.10
MZN1
243.97
243.97
NAD1
1,074.02
1,074.02
NGN1
39.58
39.58
NIO1
450.16
450.16
NOK1
1,748.81
1,748.81
NPR1
130.11
130.11
NZD1
9,705.53
9,705.53
OMR1
37,119.15
37,119.15
PAB1
14,289.87
14,289.87
PEN1
4,367.98
4,367.98
PGK1
4,344.59
4,344.59
PHP1
267.27
267.27
PKR1
111.94
111.94
PLN1
3,859.98
3,859.98
PYG1
2.49
2.49
QAR1
3,924.71
3,924.71
RON1
3,574.96
3,574.96
RSD1
141.07
141.07
RUB1
226.71
226.71
RWF1
16.44
16.44
SAR1
3,810.32
3,810.32
SBD1
1,813.49
1,813.49
SCR1
1,055.42
1,055.42
SDG1
793.65
793.65
SEK1
1,612.39
1,612.39
SGD1
10,466.16
10,466.16
SHP1
18,688.29
18,688.29
SLL1
2.26
2.26
SOS1
24.65
24.65
SRD1
1,916.04
1,916.04
SSP1
109.69
109.69
STD1
0.67
0.67
STN1
675.64
675.64
SVC1
1,632.78
1,632.78
SYP1
27.74
27.74
SZL1
1,073.69
1,073.69
THB1
429.03
429.03
TJS1
1,517.71
1,517.71
TMT1
4,071.21
4,071.21
TND1
5,397.07
5,397.07
TOP1
6,183.18
6,183.18
TRY1
2,977.99
2,977.99
TTD1
2,119.70
2,119.70
TWD1
467.13
467.13
TZS1
6.26
6.26
UAH1
542.90
542.90
UGX1
3.81
3.81
USD1
14,289.87
14,289.87
UYU1
458.22
458.22
UZS1
1.83
1.83
VEF1
0.17
0.17
VND1
0.62
0.62
VUV1
131.43
131.43
WST1
5,520.45
5,520.45
XAF1
25.36
25.36
XAG1
222,407.23
222,407.23
XAU1
17,540,044.28
17,540,044.28
XCD1
5,287.55
5,287.55
XDR1
20,002.84
20,002.84
XOF1
25.36
25.36
XPD1
13,105,287.17
13,105,287.17
XPF1
139.45
139.45
XPT1
11,724,736.27
11,724,736.27
YER1
57.07
57.07
ZAR1
1,076.38
1,076.38
ZMW1
1,432.38
1,432.38
ZWL1
44.32
44.32
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services