Council demands delay in public bus fare hike

Council demands delay in public bus fare hike

JAKARTA (JP): City Council Commission D for development
affairs demanded on Friday that the Organization of City Land
Transportation Owners (Organda) postpone its decision to increase
fares of public air-conditioned buses.

"We urge Organda to delay the rise until it discusses it with
us," the commission's secretary, Bimo Hastoro, told reporters.

Bimo, of the Indonesian Democratic Party of Struggle (PDIP),
slammed the association for deciding to increase the bus fare
from Rp 2,500 (US$0.30) to Rp 3,300 without discussing it first
with the council.

He accused Organda of violating its agreement with the council
last month that the fare should not be increased beyond Rp 3,100.

"We are really upset that Organda did not heed our agreement.
They seem to ignore us as public representatives," Bimo said.

He said that the fare for air-conditioned buses was also a
public matter and should be discussed with public representatives
although Law 14/1992 on public transportation does stipulate that
fares for air-conditioned buses would be decided by
transportation operators.

He said City Council had summoned Organda to explain the fare
decision in a hearing scheduled for next week.

Another councillor, Ali Imran Husein of the United Development
Party (PPP), was disappointed that the city administration seemed
to refuse responsibility on the decision of the bus fare
increase.

"The administration cannot say whether they know anything
about the increase or not," said Ali who is deputy chairman of
the commission.

He said Organda had adopted a monopolistic practice in
deciding the bus fare increase, instead of a market mechanism
that was always required by the city administration.

After announcing the increase, Organda's chairman Aip
Syaifuddin claimed that the rise had been approved by the
administration and City Council.

Aip said that Organda had to raise the fare due to an increase
in the price of oil in June, which had prompted the management of
other regular and economic-class buses to increase their fares
last month.

Fares for regular buses were increased from Rp 500 to Rp 700,
the fare for medium-sized buses such as Metromini and Kopaja
buses was also increased from Rp 700 to Rp 900 and the fare for
public minivans was increased from Rp 1,000 to Rp 1,200.

Organda groups 15 bus companies that operate more than 10,000
large and medium-sized buses and 12,000 minivans in Greater
Jakarta.

Separately, City Governor Sutiyoso denied on Friday that the
administration was involved in a decision to increase the fares
of air-conditioned buses.

"We haven't been involved in deciding the fare. We have
complied with the government regulation that stipulates the
application of a market mechanism for the bus fare," Sutiyoso
told reporters.

Asked whether the increase could be postponed and discussed
further, Sutiyoso seemed reluctant to delay the increase although
he hinted at the possibility to discuss the rise.

He said he was ready to discuss the matter with the council,
Organda as well as the Indonesian Consumers Institute Foundation
(YLKI).

"I will also ask my subordinates about the matter. My staff
should inform me about the reaction of the general public,
including if there is any rejection to the fare hike," he added.
(jun)