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)