Authorities agree to suspend plan to raise taxi fares

Authorities agree to suspend plan to raise taxi fares

JAKARTA (JP): The Organization of Land Transportation Owners
(Organda) and the City Land Transportation Agency (DLLAJ) agreed
on Tuesday to suspend taxi fare rises in the capital until
further notice.

"Organda has agreed to suspend the regulation and decided to
wait for approval from city councillors on the fare hike," DLLAJ
chief Buyung Atang said on Tuesday on the sidelines of a meeting
discussing the controversial issue with Commission D for
development affairs.

Organda proposed a hike in May this year, which Governor
Sutiyoso's approved in a decree dated Aug. 22.

The organization then informed all taxi companies in Jakarta
that new fares were effective as of Sept. 1.

Buyung said the agreement to suspend the new fares was reached
after a meeting attended by head of Organda's taxi unit Izak
A.Rumeidi and Blue Bird group director of operations Ateng
Haryono at DLLAJ headquarters on Monday evening.

"Blue Bird management promised to a provide table (containing
the old fares) to their drivers starting today," Buyung added.

Contacted separately, Ateng denied he had had a meeting with
Organda and DLLAJ.

He revealed a few things on the matter but asked for them not
to be printed.

Blue Bird taxis, considered by many to be the most reliable in
town, are the only taxi firm in the capital to have adjusted
their meters with the new rate.

Other taxi companies provided a list of the new fares to their
drivers so they could inform passengers about the amount they
should pay. But, except Blue Bird, most taxi operators started
using the old fares again on Sunday as drivers complained about a
significant drop in passenger numbers.

Buyung said that based on Monday's agreement, Blue Bird need
not readjust their taxis' meters but should charge passengers the
old fare based on the table provided.

Saying that the governor had yet to officially announce the
new fares, DLLAJ on Monday started ticketing taxies charging the
new fares.

On Monday alone, DLLAJ ticketed 224 taxies, most of which were
from the Blue Bird group.

The agency did not disclose the number of taxis ticketed on
Tuesday.

Through Gubernatorial Decree No. 2503, the administration
agreed flagfall hikes from Rp 2,000 (25 U.S.cents) to Rp 3,000,
and charges from Rp 900 per kilometer to Rp 1,300 per kilometer.
It also agreed to hike the waiting fee from Rp 10,000 to Rp
13,000 per hour.

Buyung said approval from the governor was reached after
months of surveys.

Organda, he said, had initially asked for a 100 percent fare
hike, saying that taxi companies would go bankrupt due to the
skyrocketing prices of spare parts and service. But the governor
only approved a 50 percent increase.

According to a 1998 decree issued by minister of
transportation, Organda followed the proper procedures in asking
for the fare hike.

The decree states any fare hike only needs the approval of the
governor, not councillors.

Due to strong objections from passengers, drivers and
councillors, Sutiyoso, who said he had yet to officially announce
the agreement after approving it, asked DLLAJ to take stern
action against any taxis charging the new fares in the capital.

Buyung urged councillors to decide on the matter as soon as
possible to prevent further delays and give certainty to taxi
companies.

Commission D chairman Sayogo Hendrosuroto said the decision on
the fare hike should come from the plenary session of the
council.

The council received the letter from the governor approving
the hike in the taxi fare from the governor on Sept. 1 so it had
yet to decide on the matter, he said.

National Mandate Party councillor Tjuk Sudono said the council
might give its approval, but only if new fuel prices take effect
next month.

"In my opinion, a 15 percent to 20 percent hike is enough. It
is very weird if taxi companies say they are going bankrupt when
there are 15 new companies applying for permits.

"Are they all trying to go bankrupt, too?" Tjuk asked.

Councillor Ali Imran Husein echoed Tjuk, saying an around 20
percent hike would be acceptable due to fuel price hikes and,
that, for a big city such as Jakarta, taxis could be counted as a
form of public transport.

In a related development, around 50 Blue Bird taxies gathered
in the National Monument (Monas) park, demanding a clear policy
on the fare hike as the decision had made them lose many of their
passengers.

Blue Bird operational chief Toto Praharsto rushed to the site.
He ensured drivers that beginning Wednesday they could use the
old fares.

After two hours in the park, the drivers dispersed. Some of
them opted to return to their depot as they were still confused
with the regulation. (dja)