'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)