Bus operators seek import duty exemption

Bus operators seek import duty exemption

JAKARTA (JP): Public bus owners and operators called on the
government yesterday to exempt them from paying import duties and
subsidize imports of badly needed spare parts.

The Organization of Land Transportation Owners (Organda) and
City Land Transportation Agency (DLLAJ) are currently discussing
measures to alleviate the pressure on bus owners and operators.

This includes setting the exchange rate at Rp 5,000 to the
dollar for all imports of spare parts for Organda members, Izak
A. Rumaedi, head of Organda's economic and finance affairs, said.

The prices of imported spare parts and components have become
prohibitively high following the 75 percent plunge in the value
of the rupiah against the dollar over the last nine months.

Many operators have simply ceased operations because it is no
longer commercially viable. Their calls to hike bus fares have so
far been rejected by the government.

One estimate puts as many as 30 percent of Jakarta's public
transportation vehicles off the streets.

Izak said Organda was also discussing with the widely
diversified Bimantara Group ways to ease the situation.

Bimantara, which is controlled by Soeharto's second son
Bambang Trihatmodjo, has proposed to coordinate all the imports
of spare parts needed for Organda members.

He said Bimantara's proposal will be presented to the
government in the near future.

When asked about Bimantara's involvement, he responded: "Quite
simply, we don't have any money. Bimantara has come up with a
good offer to help our plight."

He said the prices of bus spare parts have gone up by as much
as 300 percent.

"The price of a bus tire was only Rp 150,000 in August. Now it
is Rp 400,000."

DLLAJ chief J.P. Sepang said the government has allocated Rp
12 billion, which would be made available in the form of bank
credits, to help bus operators buy spare parts.

"Rp 1.2 billion is being set aside for Jakarta," Sepang said.

In nearby Bogor, bus operators complained about the tough
requirements to obtain government credit.

"They want us to submit the vehicle ownership document (BKPB)
as collateral. That's hard to comply with because for most
operators, this document is being held as collateral for the
vehicle loans," a bus owner said. (edt/24/ind)