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)