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Sat, 31 Jul 1999

JP/City Council proposes halving of public bus levies

City Council proposes halving of public bus levies

JAKARTA (JP): The City Council will ask the city administration to stop collecting up to 50 percent of the levies imposed on bus companies to help the public transportation industry, a councilor said on Friday.

Councilor Ali Wongso Sinaga said cutting the collection of the levies for at least one year was necessary to prevent public transportation companies and cooperatives from going out of business.

"After one year, the decision could be revised," Ali said.

A proposal to cut the collection of levies will be sent to the administration by the council, he said.

Among those fees which the council will propose cutting are levies on bus terminals, route permits, business licenses for transportation companies and vehicle taxes, he said.

The proposal to cut the collection of levies comes at a time when the administration and the council are discussing the possibility of raising bus fares.

Based on calculations by the Association of Public Transportation Company Owners (Organda), the fares for regular buses should be raised to Rp 814 from Rp 300, for minibuses to Rp 980 from Rp 500 and the fares for non-air-conditioned and limited (PATAS) buses should be raised to Rp 1,668 from Rp 700.

Based on calculations by the Land Transportation Agency (DLLAJ), however, fares for regular buses should be increased to Rp 595 from Rp 300, for minibuses to Rp 980 from Rp 500 and the fares for non-air-conditioned and PATAS buses should be raised to Rp 841 from Rp 700.

Ali said that despite several meetings on the matter, both Organda and DLLAJ seemed unable to reach a compromise.

"The City Council, therefore, plans to hold a meeting on the matter with representatives from the National Development Planning Board, the Ministry of Finance and the Ministry of Transportation," Ali said.

"How else can we get subsidies or cross-subsidies? The council will also ask the House of Representatives Commission IV for transportation affairs to facilitate the meeting."

Ali also said it was possible the meeting would involve the Ministry of Trade and Industry to help with the matter of the cost of spare parts for buses. (ylt)