Anti-monopoly commission to probe taxi firms

Anti-monopoly commission to probe taxi firms

JAKARTA (JP): The Business Competition Supervisory Commission
(KPPU) will investigate the controversial hike in taxi tariffs in
Jakarta as there have been allegations that it was induced by
unhealthy business practices among taxi companies.

Commission member Didik J. Rachbini said on Friday that the
KPPU had found irregularities and questioned which institution
had the authority to set fares.

"We will carry out an investigation based on the assumption of
a violation of Law No. 5/1999 on the prohibition of monopolies
and unhealthy business practices by the Association of Land
Transportation Owners (Organda).

"We have noticed that in the past, whenever Organda decided to
hike fares all of the taxi companies agreed to it. But, now, some
companies are still using the old fare," Didik said during a
meeting with the City Land Transportation Agency (DLLAJ), taxi
companies, Organda and the public.

Didik blasted companies who claimed that they were raising
fares to avoid bankruptcy, despite the lack of a unanimous
agreement among the association's members.

"We can't accept this excuse. It's not logical that one
company should raise its fare because of the fear of bankruptcy,
while there is no sign that the other companies which kept the
old fares are going bankrupt," he added.

A researcher from the Public Interest Research and Advisory
Center (PIRAC), Zaim Saidi, said that such practices proved that
Organda was a de facto cartel, where the association conspired
with some companies to set new fares.

"We can see that not all the companies followed Organda's new
ruling on fares and that some of the taxi drivers objected to
this decision," Zaim remarked.

He also alleged that the government was partial in handling
the matter and took a stand defending the personal interests of
company owners rather than taking the side of consumers or the
taxi drivers.

"Moreover, Organda should be dissolved as the sole association
representing land transportation companies as some of its members
have deserted it," Zaim said.

Separately, Deputy Head of the DLLAJ Dimmy Kibrandiman said
that Jakarta's taxi operators were free to decide whether or not
they wished to increase their fares.

However, he pointed out that the governor endorsed a fare hike
of 45.5 percent only after a series of evaluations which were
conducted by the City Administration and that the City Council
had also endorsed it.

Governor Sutiyoso signed his approval for the fare hike in
November.

Gubernatorial Decree No. 2503/2000 allows taxi companies to
raise the flagfall from Rp 2,000 (around 25 US cents) to Rp
3,000, and increase the charge from Rp 900 per kilometer to Rp
1,300 per kilometer. The waiting fee was also increased from Rp
10,000 to Rp 13,000 per hour.

According to the DLLAJ, at least seven of the city's 32 taxi
companies are still charging the old fare. They are PT Citra
Taxi, PT Steady Safe, PT Kosti Jaya, PT Koperasi Taksi, PT Sri
Medali, PT Queen Taxi and PT Kartika Taksi.

Out of the 22,000 cabs registered in the capital, only 16,000
are currently available for hire, with the remaining 6,000 having
failed the vehicle road test. (04/bby/tnt)