Indonesian Political, Business & Finance News

27 percent bus fare increase proposed

| Source: JP

27 percent bus fare increase proposed

Bambang Nurbianto, The Jakarta Post, Jakarta

City Governor Sutiyoso has proposed to increase city bus fares by
up to 27 percent from current fares in response to the request
made by public transport operators last month.

In his letter to the City Council on Wednesday, Sutiyoso
proposed to increase fares for regular buses to Rp 1,150 from Rp
900, for limited express buses to Rp 1,400 from Rp 1,200, and for
medium-sized buses to Rp 1,250 from Rp 1,000.

Student fares will remain at Rp 500.

The Organization of Land Transportation Owners (Organda) had
earlier proposed a 50 percent increase in bus fares to help bus
owners offset the rise in the price of fuel and spare parts since
last year.

Sutiyoso planned to make the fare hike proposal earlier this
year following the decision of the central government to increase
fuel prices, but he delayed the announcement arguing that he
needed more time to study the new fares.

On Jan. 1, the government announced a simultaneous increase in
fuel prices, electricity rates and telephone charges, causing
nationwide protests against the hikes.

The price of premium gasoline was raised from Rp 1,750 per
liter to Rp 1,810, and from Rp 1,550 per liter to Rp 1,890 for
diesel fuel. The government later cut the diesel price to Rp
1,650.

City Hall spokesman Muhayat said on Thursday that the main
issue regarding the tariff increase was that the central
government had not implemented its fuel subsidy program for
public transportation.

The Indonesian Consumer Foundation (YLKI) earlier criticized
the plan to increase fares for public transportation -- which is
notorious for their poor service -- while it also urged the
government to subsidize the service.

Meanwhile, Chairman of City Council Commission D for
development affairs Koeswadi Soesilohardjo said that his faction,
together with Commission C for financial affairs, would discuss
the governor's proposal on Monday.

He hinted, however, that the Council might agree with the fare
increase, saying that bus operators needed the increase to help
them to cover their operational costs.

"If the bus operators cannot cover their operational costs,
they would become bankrupt, which would, in turn, make people
suffer as they would face difficulty in finding public
transportation," Koeswadi.

He refused to comment on the figures of the fare increase,
saying that they would be discussed along with other councillors.

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