Indonesian Political, Business & Finance News

Aircon bus operators warned over fare hike

| Source: JP

Aircon bus operators warned over fare hike

JAKARTA (JP): Governor Sutiyoso proposed on Friday to
establish a city-owned company to operate air-conditioned buses
in order to better serve the commuters.

The bus operator will be a subsidiary of PT Jakarta
Propertindo, a city-owned company that manages the Jakarta Outer
Ring Road. It is expected to be established soon, according to
the governor, without elaborating.

Sutiyoso said that the administration chose PT Jakarta
Propertindo to manage the city-owned bus operator due to its
success in inviting a number of private investors to join the
JORR project.

The new bus operator would complement the city-owned PPD, a
company which operates regular buses.

He considered it important for the city administration to have
its own AC bus operator, since some private bus operators always
threatened to halt their services should problems occur.

The governor had earlier warned bus operators not to hike the
fares for air-conditioned buses, pending the city
administration's approval of the increase.

He also called upon the City Land Transportation Agency
(DLLAJ), which is responsible for regulating bus operators, to
take action against those who ignored the warning.

Some air-conditioned bus operators have reportedly raised
their fares to between Rp 3,000 and Rp 3,200 from the previous Rp
2,500, even though the Jakarta government has yet to made a final
decision on the size of the hike.

The governor said the Organization of Land Transportation
Owners (Organda) had yet to formally propose the fare hike.

"People should refuse to pay more than the usual fare if bus
operators continue to charge extra," Sutiyoso said.

However, he admitted that he would not cancel the licenses of
delinquent bus operators.

Sutiyoso argued that if the administration canceled any
licenses, there would be a shortage of public buses in the city,
which in the end would prejudice commuters.

Meanwhile, the head of the DLLAJ, Rustam Effendy, denied that
his office had failed to prosecute operators who had hiked fares
prematurely.

"The DLLAJ often warns bus operators which break the rules,
including raising fares without the administration's approval,"
he said.

Commuters have objected to the fare hike, which they consider
too hefty, especially as the hike has not been accompanied by
improvements in service. (04)

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