Bus owners to propose 25% hike in fares

JAKARTA (JP): The city chapter of the Organization of Land Transportation Owners (Organda DKI) is to propose a 25 percent hike in bus fares here to the central government in order to cope with high operational costs, its chief said Friday.

"We'll submit the proposal to the Ministry of Communications probably some time next week," chapter chairman Aip Syaifuddin told The Jakarta Post.

The need was so crucial for the bus owners as they were no longer able to cope with skyrocketing prices of vehicle spare parts, among other things, while bus tariffs have yet to be adjusted.

"A 25 percent hike is the minimum," Aip insisted.

Based on a government decision issued in May last year, the fares for regular and non-regular buses are currently set at Rp 300 per passenger, Metromini minibuses at Rp 500, limited capacity Patas buses Rp 700, and air-conditioned buses Rp 2,300.

"Even with those rates, transportation owners are running at a loss," Aip said.

During its upcoming meeting with the ministry's officials, Organda DKI would also advocate that the government hikes bus fares on a regular basis, similar to electricity rates, he added.

"This is meant to prevent consumers being shocked by sudden increases in tariffs," Aip added.

He would also urge the government to reevaluate the situation where a great number of buses from different companies vie for passengers on the same routes.

The recent disbursement of government loans worth Rp 52.52 billion to at least 12 transportation companies and cooperatives in the Jakarta area to enable them to shoulder prices of spare parts "only helped the businesses to operate a few more buses", he said.

If only 30 percent of the total bus fleets were operating previously, the number -- with the help of the loans -- has grown to between some 40 and 50 percent, Aip said.

Syarifuddin, boss of the green-and-white Kopaja minibuses, which has a total fleet of 1,490 vehicles, urged the organization to ask the government in addition to review import duties on vehicle spare parts as well as taxes on changing vehicle ownership and vehicle sales.

"The effect of the bus fares increase would be too small for the public bus companies without a significant revision of the import duties and the taxes," Syarifuddin said.

He said people should also understand that the public bus business in the capital has become unproductive to both owners and crew during the current financial crisis, which has led to dismissals of tens of thousands of people and to many dropping out of school.

"Aside from "penumpang batu" (passengers who travel from terminal to terminal), the number of bus passengers has shown a significant drop lately.

Meanwhile, the number of buses on the streets has grown," he added.

When asked to comment on the organization's plan, Feisal Amir, head of the Jakarta office of Land Transportation of the Ministry of Communications, referred the idea as "very good".

He believed that the proposal would be accepted.

"One should understand difficulties currently faced by bus crews," Feisal said, giving no further explanation. (ylt)