Wed, 30 Sep 1998

Bus owners threaten to halt operations

JAKARTA (JP): Public transportation owners on Tuesday threatened to stop operating and hand over the transportation business in the capital to the government if the latter is unable to help lower the skyrocketing prices of spare parts.

Aip Sjarifudin, chairman of the Jakarta chapter of the Organization of Land Transportation Owners (Organda DKI), said that the operators were forced to articulate the threat as the government had not responded to their complaints.

He said that the operators had been repeatedly urging the government for some time to offer a type of subsidy so as to enable them to get the spare parts at cheaper prices.

"If the government is reluctant to do so, then it's better for the government to take over and manage the business by itself as the operators can no longer survive in the current conditions," he said.

Organda DKI is currently overseeing the operation of 10 bus companies, namely Mayasari Bakti, Bianglala, Steady Safe, Giri Indah, Kopaja, Metro Mini, Kopami Jaya, Koantas Bima, AJA and Himpurna with a total fleet of 8,500 medium sized and large buses.

Aip said that the operators were waiting for the realization of the government's plan to provide cheap spare parts for public transportation.

Promise

The government promised earlier to provide a kind of nation- wide subsidy for the purchase of spare parts through an allocation of funds amounting to Rp 220 billion (US$20 million), he said.

"In a meeting between the operators and officials of the National Development Planning Board and the Ministry of Communications on Sept. 18, however, no clear information was available about whether the subsidy would be provided soon," he said.

The price of spare parts, which depend largely on imports, has tripled over the past few months due to the tumbling rupiah against the U.S. dollar.

Aip also said that Organda had sent a letter to the Ministry of Trade and Industry, requesting that public transportation cooperatives be permitted to directly import the spare parts as a way to lower the prices, "but not a single response was made," Aip said.

Organda have also reminded the government to help lower the price of spare parts to avoid the possibility of massive strikes by public transportation drivers for fear of creating unrest similar to that which occurred in Medan, North Sumatra.

A massive strike by thousands of public transportation drivers crippled Medan on Sept. 14, during which they protested not only against the rising prices of spare parts but also price hikes of basic commodities.

Many of the striking drivers vandalized local properties.

The ensuing chaotic situation allowed a mob the opportunity to loot a local shopping center as well.

Meanwhile, Minister of Cooperatives and Small Enterprises Adi Sasono said on Tuesday that he supported an idea allowing the public transportation cooperatives to directly import spare parts.

"(Direct import through cooperatives) is badly needed. I will fight for and discuss it with other related institutions," he said. (ind)