Air-conditioned buses set for fare increase

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)