'Bemo' owners to buy minivans

'Bemo' owners to buy minivans

JAKARTA (JP): The city administration has approved a proposal
made by bemo owners that they be granted low-interest loans to
buy minivans as replacements for the three-wheeled motorized
vehicles, which will soon be phased out.

The head of the Organization of Owners of Land Transport
Vehicles, Aip Sjarifudin, said yesterday that the deputy governor
for economic and development affairs has approved the proposal.

Aip said that the loans will be provided by the city-owned
Bank DKI.

"The city administration approved the proposal, and it also
agreed to reduce the amount of the down payment of the vehicles
to 50 percent," he said.

Aip said that the amount of interest will be decided by the
bank in the future.

He explained that the down payment for the vehicles is now set
at Rp 2.5 million (US$1,086), from the previously required Rp 5
million.

Aip said that the policy is in line with demands of bemo
owners, because they have been asking the city administration to
reduce the interest of the bank loans and reduce the down payment
on the new vehicles.

"In a meeting with the city administration, the owners
demanded such conditions if the administration plans to continue
the program, and I think this is a sign that the program will be
carried out soon," he said.

He added that some bemo will be eliminated in August, and all
bemo will be removed from city streets by December this year.

The governor has issued an instruction to replace bemo with
four-wheeled vehicles with 1300cc engines.

Currently, there are a total of 1,061 bemo operating
throughout the city.

Many bemo owners opposed the plan, claiming that they could
not afford to buy other vehicles as replacements because they
were too expensive. Up until now, only 350 bemo owners have
signed up for the program.

Aip also said the city administration will not pay any
compensation for bemo, because it lacks the funds and it will
only create another problem.

The Organization of Owners of Land Transport Vehicles had
earlier suggested that bemo owners be given Rp 500,000 for each
of the vehicles. (yns)