Cabbies, owners want stable rents despite fare hike

Cabbies, owners want stable rents despite fare hike

JAKARTA (JP): Despite yesterday's government announcement that taxi fares are to be increased by 66.7 percent from today, owners and drivers say rents should remain stable for the next few months.

Based on the last fare increases, in 1991, both management representatives and drivers believe rents will increase eventually, but only after the number of consumers returns to pre-rise levels.

"We expect a drop in the number of consumers for four to six months," Rudi Hardjono, a marketing staff member of the Steady Safe company said.

In his announcement of the increases in public transportation fares, Minister of Transportation Haryanto Dhanutirto said the taxi flagfall is increased from Rp 900 (39 US cents) to Rp 1,500, and from Rp 450 to Rp 550 for each additional kilometer.

During this time daily rents will remain Rp 60,000 for the company's Ford Laser taxis, he said. Drivers, he said, take home a minimum of Rp 10,000 daily.

Nurhadi of the Dian taxi company also said rents will stay at Rp 58,500.

"The number of passengers is likely to drop by 25 percent," he said. "We cannot immediately increase the rents, it would be too difficult for the drivers."

Muhammad Syamsuddin, a taxi driver of the Koperasi Taxi Indonesia cooperative, said he welcomed the increased tariffs as long as rents are not immediately increased.

He assumed the daily rent will be raised from the current Rp 45,000 to Rp 50,000.

"But we need a transition period to cope with the new fares," he said. He added he expected it would last for three months.

Muhammad said he earns up to Rp 30,000 a day for 12 to 18- hours work. Drivers usually work two days and rest for one day.

Sadikin, a President Taxi driver, said he was not too worried about the increase, hoping that higher revenues would eventually match increases in daily rents.

In 1991 taxi fares were raised 12.5 percent from Rp 800 to Rp 900, and for each additional kilometer the raise was from Rp 400 to Rp 450.

Rudi of the Steady Safe company said this year's raise is just enough to cover increases in spare parts.

He regretted that the government did not respond to proposals in fare increases earlier, resulting in this high increase.

"We may still have to ask our spare part suppliers for a longer period of paying our debts," Rudi said.

In response to how taxi managements planned to improve services, Nurhadi of the Dian company said this would be inevitable given tight competition.

Meanwhile Aip Sjarifuddin, the head of the city branch of the organization of public land transportation owners, said he still hopes the government would end double taxes on public vehicles.

The organization, Organda, is grateful of the increases which have been proposed for the past three years, he said.

"But another alternative is needed to enable us improve services," he told The Jakarta Post.

Organda, Aip said, still hopes the government could arrange loans for small enterprises, known locally as low-interest KUK, for its members.

"A reduction of tax rates and import duties for imported vehicle spare parts should also be granted," he said.

Aip said most transportation companies buy vehicles under credit facilities with a 30 percent interest rate. KUK charges only 12 percent interest. (yns/03/14/anr)