Indonesian Political, Business & Finance News

30% of minivans, buses stop operation

| Source: JP

30% of minivans, buses stop operation

JAKARTA (JP): Owners of the city's public transportation
fleets have been forced to take about 30 percent of their
vehicles off the roads as they can no longer afford to buy spare
parts, an executive said yesterday.

Priyatmedi, from the local Organization of Land Transportation
Owners (Organda), said the small public transportation companies
were worst hit by the soaring prices of spare parts.

"Big transportation firms can replace damaged parts with those
from other vehicles," he said. "So, most vehicles in the fleet
can continue operating.

"Such a technique, however, cannot be used by small companies
due to the limited number of vehicles."

Based on data from the City Land Transportation Agency
(DLLAJ), Jakarta has a 15,731-strong public transportation fleet,
ranging from minivans to buses.

PT Mayasari Bakti, PT Giri Indah, PT Metro Mini, PT Kopaja and
PT Mikrolet are among the 20 transportation companies listed by
the agency.

Priyatmedi said that since the plunge in value of the rupiah
against the U.S. dollar, the prices of spare parts have soared
300 percent.

Transportation companies are now waiting for government
intervention to help bring down the prices of spare parts, he
said.

The head of City Land Transportation Agency, JP Sepang, said
yesterday that tariff increases were unavoidable, but "it is
impossible for the time being".

"People are reeling from the economic turmoil where the prices
of everything are soaring. It will further burden the people if
we increase the tariffs now."

Sepang said the agency had not received a formal notification
on the planned increase in tariffs for noneconomy-class buses.

"I just heard from the media (about the increase) that's why
there hasn't been any increase here".

On Monday, Organda announced that it would impose a 25 percent
hike on intercity and interprovincial bus fares as of Tuesday.

The organization guaranteed not to raise the tariffs in
Jakarta, including air-conditioned buses, until March at the
earliest.

Sepang said the agency had reported the crews of 76 buses, who
had charged passengers above the official tariffs during the Idul
Fitri holiday, to the Directorate General of Land Transportation.

"But the punishment will not be too stern as their violations
were not too serious," he said. (ind)

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