Sat, 04 Aug 2001

Air-conditioned buses set for fare increase

JAKARTA (JP): The city administration has rejected the proposal by the Organization of Land Transportation Owners (Organda) to increase fares for air-conditioned buses by as much as 80 percent or Rp 4,500 from the previous Rp 2,500 (25 U.S. cents).

The proposal was made by the chairman of the Jakarta chapter of Organda, Aip Syaifuddin, during a meeting with Governor Sutiyoso at the City Hall on Friday.

The governor told reporters later in the day that he rejected the proposal since it was "too much".

He said the appropriate increase for air-conditioned bus fares was between 20 and 25 percent or a fare ranging between Rp 3,000 and Rp 3,100.

In June, the administration approved an increase in regular bus fares and minivans of between 30 to 60 percent, following the increase in fuel prices.

At that time, Organda proposed a 100 percent hike in the fares of air-conditioned buses. But the administration said that the air-conditioned bus fares could be increased to as much as Rp 3,500 from the current Rp 2,500, while the City Council recommended Rp 3,000.

However, the decision to increase the fares was postponed following an agreement between Organda and the administration that the fares would be left to bus operators to decide.

"If the air-conditioned bus fare increase is based on the market mechanism, the administration worries that the fare would increase too much, which will result in a backlash from the public," Sutiyoso said on Friday. (04)