Bus companies to get soft loans immediately

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)