Car rent agencies establish union

Car rent agencies establish union

JAKARTA (JP): At least 250 car rental businesses have set up
an organization in an effort to improve services and avoid
unhealthy competition among them.

The chairman of the Association of the Indonesian Car Rental
Businesses (Hipermi), Sabaruddin S, said in a statement here
Tuesday night that the organization will also help the government
in its efforts to discourage tax evasion among its members.

Sabaruddin said that Hipermi will also improve the discipline
of its members and avoid manipulations of car rentals by the
drivers, as had repeatedly happened in the past.

He said that it will also put an end to unhealthy competition
among its members. According to Sabaruddin, the absence of
standard fixed fares among car rental businesses has led to the
competition.

He said many small car rental businesses have suffered ruinous
losses from the rivalry.

"Hipermi will set a standard tariff," he said.

The chairman hoped that the organization will be able to
protect its members and help improve their businesses.

Sabaruddin said that since the car rental business is not a
common field in this country many people still confuse it with
the unauthorized taxi operations which still exist here.

According to Sabaruddin his organization will also set up
chapters in the provinces in an effort to improve services.

Citing an example, he said, a car renter who hires a car to
drive to Bali and does not want to return here can settle the
payment at Hipermi's branch office in Denpasar, Bali.

He said Hipermi's members now operate a total of 20,000 cars.
(tis)