Indonesian Political, Business & Finance News

Bus fare hike proposal returned to governor

| Source: JP

Bus fare hike proposal returned to governor

Bambang Nurbianto, The Jakarta Post, Jakarta

The City Council returned on Monday a proposal to increase city
bus fares by an average of 27 percent to Governor Sutiyoso
because stakeholders were in hot dispute about the issue.

The decision was made during a hearing at the City Council,
attended by the Indonesian Consumers Foundation (YLKI), the
Organization of Land Transportation Owners (Organda) and the City
Land Transportation Agency.

City Council Deputy Speaker Tarmidi Suhardjo told those
attending the hearing that executives and other stakeholders
should discuss the issue thoroughly before the proposal was again
presented to the City Council.

Tarmidi stressed the need for the involvement of YLKI and
other relevant organizations in any discussion on fare increases.

In his proposal to the City Council last week, Sutiyoso
suggested increasing fares for regular buses to Rp 1,150 from Rp
900, for limited express buses to Rp 1,400 from Rp 1,200 and for
medium-sized buses to Rp 1,250 from Rp 1,000. Student fares will
remain at Rp 500.

Both by Organda and YLKI objected to Sutiyoso's proposal.

Organda chairman Aip Syaifuddin insisted on a 50 percent fare
increase, saying that Organda's bus operators would go on strike
next Monday if the proposal was rejected.

He argued that current fares could no longer cover the
operational costs of public vehicles following the increase in
prices of fuel and spare parts.

Meanwhile YLKI chairwoman Indah Suksmaningsih objected to
increasing bus fares and said that bus operators should improve
their services before increasing fares.

Indah said many drivers, particularly of medium sized-city
buses, did not ply all of the routes they were on. For example,
he said, nearly all buses leaving Tanah Abang, which should serve
the Tanah Abang-Kampung Rambutan route, stop at Kampung Melayu
instead of Kampung Rambutan.

"We cannot accept the fare increase until their services are
really improved," he said.

During the hearing, Aip also revealed irregularities in the
City Land Transportation Agency, which further burdened bus
operators.

Aip said that various fees were collected by officials in the
agency when bus operators needed roadworthy tests done on their
buses. He said bus operators could pay twice the official fee.

Jakarta Residents Forum (Fakta) chairman Azas Tigor Nainggolan
claimed that officials at the City Land Transportation Agency
issued permits effortlessly for lucrative routes to bus operators
who paid additional money.

Tigor, who owns 12 medium-sized city buses, said fare
increases would not be necessary if illegal fees at the City Land
Transportation Agency could be eliminated.

"Organda should not campaign to increase fares, it should
demand the City Land Transportation Agency improve the
transportation system," he said.

On Jan. 1, the government announced a simultaneous increase in
fuel prices, electricity rates and telephone charges, causing
nationwide protests against the hikes.

The price of premium gasoline was raised from Rp 1,750 per
liter to Rp 1,810, and diesel fuel from Rp 1,550 per liter to Rp
1,890. The government later cut the diesel price to Rp 1,650.

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