Bus firm losses blamed on 'too many drivers'

Bus firm losses blamed on 'too many drivers'

JAKARTA (JP): The state-owned bus company has explained long- standing financial losses by saying it has too many employees.

PPD also blamed high operating costs and the poor condition of its bus fleet for years of financial misfortune.

Spokesman M. Khamim B. told The Jakarta Post: "The company's income has been steadily decreasing, partly because we have too many drivers."

Last year, the company's costs of Rp 113.38 billion (US$50 million) were Rp 16 billion more than revenue. In 1993, costs were Rp 19.28 billion more and in 1992 costs were Rp 16.69 billion more.

The 41-year-old company has 1,634 vehicles on 144 routes in Jakarta, Bogor, Tangerang and Bekasi. However, only 900 buses are in working order. "More than half of our buses are over five years old, which has pushed up maintenance costs," Khamim said.

Vandalism by students has added to the company's problems, with as many as 1,025 buses damaged last year, causing an estimated Rp 810 million loss. In 1993, students damaged 1,084 busses at a cost of Rp 850 million.

A former PPD official believes at least part of the losses can be easily explained. "Almost half the daily revenue is stolen by drivers and conductors, who are underpaid," the official told The Jakarta Post, speaking on condition of anonymity.

Spokesman Khamim would not comment on this and was not able to explain why the ticketing system was abolished a few years ago, under which passengers were issued tickets as they boarded, making it easier for PPD cashiers to account for the fares collected. Many believe that bus drivers and conductors, unhappy with the ticketing system, forced its abolition in order to improve their poor wages.

Underpaid

S. Butar Butar, head of the Central Jakarta bus pool and a driver himself, said drivers were underpaid because there were too many of them. "A driver and conductor can only work twice or three times a week. We have to take turns," he said.

Drivers get paid between Rp 60,000 and Rp 120,000 a month, depending on experience, plus an allowance for each day they work to cover expenses such as meals. Drivers of PATAS (express) buses get an allowance of Rp 20,000, while non-PATAS drivers get only Rp 3,000.

"We cannot depend on the PPD for enough money to live," Butar Butar said. "A bus driver can never afford to send his children to a senior high school without doing a job on the side. It is common for us drivers to do other jobs after work." Most of them operate taxis, he said.

A non-PATAS driver of 20 years, Kasim said: "I must meet the company's daily target of Rp 125,000 ($56) or I lose my Rp 3,000 operational allowance." Usually, he said, he exceeded the target by about Rp 15,000, money he could take home.

Butar Butar and Kasim both said cheap fares (Rp 100) for students were part of the problem but said there was nothing they could do about it. An increase in public transport fees was recently proposed by the transport vehicles organization (Organda) but the government rejected it after a public outcry. (03/05/32)