Bus companies to get soft loans immediately
JAKARTA (JP): The government will soon disburse Rp 55.15 billion (US$7.35 million) in loans it pledged to 15 transportation companies in the capital, an executive of the Organization of Land Transportation Owners (Organda) said on Thursday.
Aip Syaifuddin, head of Organda's Jakarta office, said the loans, aimed at helping the ailing transportation sector, will be disbursed within the first two weeks of this month.
"The facilities will be given to 15 transportation cooperatives/companies in the Jakarta area, but two of them, namely AJA Putera and Koperasi ARH, have not submitted recommendation letters needed to obtain them," Aip said.
The 13 companies which have complied with the requirements are Mayasari Bakti, Pahala Kencana, Steady Safe, Himpurna, Hiba Utama, Giri Indah Andlan, Bianglala, Ikawali Pusaka Jaya, Ham Damanik, Kopami Jaya, Koantas Bima, Kopaja and Metromini, he said.
Buses, comprising city and inter-city buses heading to several cities in Java and Sumatra, badly need the loans for spare parts, which have skyrocketed in price due to the depreciation of the rupiah during the economic crisis. Most spare parts are imported.
"The loans are set at Rp 25 million for each big bus and Rp 6.5 million for each minibus. The loans were set according to current prices of spare parts.
"The prices of six tires for a big bus, for instance, cost about Rp 9 million and for a minibus, Rp 4.5 million."
Many bus operators were predicted to be unable to afford replacement spare parts without the loan provision.
Governor Sutiyoso encouraged Jakartans recently not to leave the city for their hometowns during the upcoming festive period unless willing "to pay a heavy price".
"People also have to risk their safety because there will only be a limited number of buses available, meaning that they will be dreadfully overcrowded," Sutiyoso said.
Idul Fitri -- the Muslim festival at the end of the fasting month of Ramadhan -- signals an exodus for many of the 10 million Jakartans.
"It will be very risky to travel long distances in overloaded buses," Sutiyoso warned. He pointed out the security forces, deployed mostly in major crime spots, would be unable to safeguard the seasonal exodus as in previous years.
Meanwhile, a total of 6,949 buses to accommodate holidaymakers have been prepared for the Idul Fitri holiday period, head of the control unit of the City Land Transportation Agency, Oriyanto Sapardal, said on Tuesday.
The buses will be stationed at major bus terminals in the city's five mayoralties, he said. (ylt)