Agreement on 2,000 buses for city signed

Agreement on 2,000 buses for city signed

JAKARTA (JP): Amid doubts over the ability of PT Texmaco
Perkasa Engineering to produce high quality buses and the
uncertainty of their sales, the Jakarta chapter of the
Organization of Land Transportation Owners (Organda) signed a
memorandum of understanding (MoU) on Thursday with the company to
help market 2,000 Perkasa buses to city bus operators here.

Speaking to reporters after signing the MoU, Organda Jakarta
chairman Aip Sjarifuddin said the Perkasa buses are "good enough"
since they are equipped with German-made Steier engines.

More importantly, he added, about 80 percent of their
components are locally made.

"What is important for Organda is that we buy buses of good
quality for a reasonable price," Aip said.

However, he insisted that Organda's members, comprising of 13
existing privately-run city bus operators and the only state-
owned PPD bus firm, are still worried about the qualifications of
Texmaco since the company is widely known as a producer of trucks
rather than buses.

None of bus operators here have shown an interest in
purchasing the Texmaco-made Perkasa buses which are expected to
replace most of the city's aging buses.

The city administration initially planned to import buses from
China but canceled the idea after the Ministry of Trade and
Industry refused to lower the import taxes for the buses.

According to Aip, the city bus operators here are willing to
purchase buses from any parties, including those from Texmaco or
China, as long as the vehicles meet the requirements set by the
operators.

The MoU was signed by Aip and Texmaco Group Chief Commissioner
Marimutu Sinivasan at the City Hall. Among the witnesses were
Minister of Industry and Trade Lt. Gen. (ret). Luhut B.
Panjaitan, Governor Sutiyoso, and the City Land Transportation
Agency (DLLAJ) Chief Buyung Atang.

According to Buyung, Texmaco -- as stated in the deal -- would
provide 2,000 buses over a period of two years, while Organda is
obligated to help market the buses.

"Texmaco is also obligated to provide after-sales service,
spare-parts and a leasing package for the buyers, while Organda
has to help them sell the buses to the 14 bus companies operating
in the capital," Buyung said.

"From what Texmaco has told us, the state-owned Bank Rakyat
Indonesia (BRI) has agreed to provide a credit scheme for 500
buses," he added.

Each of the 10.5-meter-long Perkasa buses would have a
capacity of 55 seats plus room for 10 standing passengers, he
said.

The city currently needs around 5,000 buses to replace the
aging buses.

Jakarta currently has 2,028 buses, including minibuses, which
have been serving passengers for more than 20 years, and 1,556
others that have been roaring up and down the capital's roads for
at least 15 years.

The vehicles to be imported from China are of two sizes,
namely 54-seat buses and 26-seat minibuses. The first type are
being offered at Rp 250 million (US$29,760) each, while the
minibuses will sell for Rp 160 million each.

Buyung said that the remaining 3,000 buses needed to replace
the old city buses would likely be shipped from China.

"The ministry of trade and industry has agreed to lower the
import tax from 40 percent to five or 10 percent. But the buses
should be completely knocked down vehicles to help boost local
auto assemblers," Buyung said.

Sinivasan told journalists that his buses cost Rp 270 million
(US$ 30,000) each. Texmaco, he added, plans to market the Perkasa
buses to other cities across the country. (dja)