Fri, 10 May 2002

'Bus fare hike not to exceed 40 percent'

Bambang Nurbianto, The Jakarta Post, Jakarta

The city administration will announce a public transportation fares increase next week, bowing to pressure from the public transportation operators after the government raised fuel prices by 14.46 percent on May 3.

Head of the City Transportation Agency Rustam Effendy said on Wednesday that the increase would not exceed 40 percent, to keep it affordable to the public.

He said the Jakarta chapter of the Organization of Land Transportation Owners (Organda) had proposed an increase of 67 percent to 71 percent on current fares.

"We'll raise the fares but it must be less than 40 percent on average. It's hard to meet the Organda proposal as we must consider the public's ability to pay," he said.

On Friday, officials from the agency will meet the Indonesian Consumers Foundation (YLKI), Organda and other parties to discuss the planned fares increase.

The administration announced its most recent public transportation fares increase last July, at 28 percent to 50 percent on previous fares.

Currently, the fare for regular buses is Rp 700, for medium- sized and limited-seat buses Rp 900 and for students Rp 300.

Organda has proposed new fares of Rp 1,250, Rp 1,500 and Rp 500 respectively.

Low-income families will suffer most from a fares increase.

Some public transportation drivers did not want fares to be increased because they would also have to face an increase in vehicle rental fees, which, in the end, would benefit the operators rather than the drivers.

"The operators will also raise the (vehicle) rental fee. We won't get anything from the increase," moaned Salim, a driver of a public minivan plying the route from Tanah Abang, Central Jakarta, to Kebayoran Lama, South Jakarta.

Organda Jakarta chapter deputy chairman Putu Wirta Antara said that an average 40 percent fares increase would not cover the operational cost of public transportation as the price of spare parts had continually increased.

"Before the fuel price hike was announced, spare part prices had already increased. The price will be higher after the fuel price hike," Putu told The Jakarta Post on Wednesday, adding that the administration had to consult with Organda before making its decision.

"We hope they will listen to our argument at Friday's meeting and will not make a decision without agreement from Organda."

Putu said Organda has set a deadline of May 18 for the administration to make a decision.

"If no significant action has been taken by May 18, Organda will decide its own fares. If the police ticket the buses, we have already decided to stage a total strike," he said.

Organda Jakarta chapter chairman Aip Syaifuddin said earlier that without a significant increase, public transportation operators could no longer operate their vehicles.