Bus owners seek soft loans and tax reduction

JAKARTA (JP): The Organization of Land Transportation Owners (Organda) city branch called for lower bus prices, soft loans and less taxes yesterday after the Minister of Transportation turned down a planned regular bus fare hike of Rp 200 (8 U.S. cents).

City branch chairman of Organda, Aip Syarifuddin, said until now, there was no government assistance for public transportation providers.

He said the same prices were charged for vehicles whether they were for public or private use.

"If we bought a Rp 120 million bus for public transportation, the price is the same as a privately-owned bus," Aip said, referring to Hino, Mercedes and Mitsubishi bus manufacturers.

"If the government assisted bus companies, there would be no increased bus fare proposal. Bus services would improve too," Aip told The Jakarta Post yesterday.

The City Land Transportation Agency (DLLAJ) said Wednesday it planned to propose an increase of the Rp 300 regular bus fare to Rp 500. Minister of Transportation Haryanto Dhanutirto reiterated there would be no increase before next year's general assembly.

Agency chief J.P. Sepang had said it was not an increase, but a "combined fare" of the Rp 300, regular buses and the Rp 700, non air-conditioned, limited passenger (Patas) buses.

The non-AC Patas buses would be eliminated, Sepang said, and regular buses would charge Rp 500.

Aip also the government to offer soft loans to bus owners and reduce taxes.

"Even those who buy minivans must pay a luxury tax (PPN Barang Mewah)," Aip said.

He said public minivan owners could apply for a tax reduction, but "it would cost them time, money and illegal levies".

The planned increase followed Governor Surjadi Soedirdja's statement that the Rp 300 fare was too low to cover operational costs. Organda had proposed a raise to Rp 500 a few years ago.

When DLLAJ received complaints from passengers that it was difficult to find regular buses on several routes, several investigations revealed some buses changed to Rp 700, non-AC Patas buses. Several companies were temporarily prohibited from operating.

Owners said they violated rules because they were running on losses.

A 1996 rule states that each bus company must operate 40 AC Patas buses and 30 regular buses for every 30 non-AC Patas buses.

Aip also questioned yesterday the 1996 government-set bus fare structure, which divided fares into five categories, instead of two categories as stated in Law 14/1992 on transportation.

While the law governs economic and noneconomic bus fares, he said, Haryanto set five fares: Rp 1,800 for AC Patas buses, Rp 700 for non-AC Patas buses, Rp 400 for medium-sized buses, Rp 300 for regular buses and a Rp 100 fare for students.

"What would happen to bus companies if they didn't operate AC Patas buses (to subsidize the losses of cheaper buses)?" Aip said.

A driver of the Bianglala bus company welcomed the government's rejection of the proposed elimination of non-AC Patas buses.

"There's no need for me to worry about my job anymore," he said.

The Indonesian Consumers Foundation greeted yesterday the government's rejection of increased bus fares.

"Bus companies can profit if they manage their companies professionally and if the city eliminates illegal levies," the foundation's secretary, Husna Zahir, said. (ste)