Indonesian Political, Business & Finance News

City urged to take over bus management

| Source: JP

City urged to take over bus management

JAKARTA (JP): A city councilor has urged the municipal
administration to consider taking over the management of the
state-owned PPD bus company from the Ministry of Transportation,
arguing the move would lead to improved services.

Abdulgani H. Abdullah of the Indonesian Democratic Party
faction in the City Council said yesterday that it is was the
time for the city administration to think seriously about the
possibility.

He said the administration should have its own company to
provide good transportation services to the public.

The operation of public buses by the administration would
enable it to control the transportation situation in the city, he
said.

Helmy A.R. Syihab of the United Development Party faction said
that his faction agreed with the proposal in principle, but added
that technical and administrative preparations would have to be
made.

"It would be better for the administration to take over PPD's
management before the start of the seventh Five-Year Development
Plan in 1999.

The company's organization must be restructured before it is
taken over, and its debts paid," he said, adding that PPD's debts
totaled billions of rupiah.

He said the number of public buses in Jakarta is now too high,
as compared with the number of trains serving the city. "This
must be brought into balance," he said.

He said that only 5 to 10 percent of commuters used trains to
go to and from work.

Helmy said that the adoption of the proposal would also mean
an improvement in the lives of public bus drivers.

"The drivers would receive higher take-home pay. Thereby they
would cease competing with each other in seeking passengers to
reach the company's revenue targets," he added. (32)

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