Council endorses proposal to raise taxi fares by 45%

Council endorses proposal to raise taxi fares by 45%

JAKARTA (JP): After a one-month suspension, the City Council
endorsed the 45 percent fare hike proposed by taxi companies in
the capital.

"The City Council has endorsed our proposed 45 percent fare
hike and sent its letter of approval to Governor Sutiyoso.

"We are now waiting for the governor's decree on the effective
application date of the new fare," the chairman of the Jakarta
chapter of the Association of Land Transportation Owners
(Organda), Aip Sjarifuddin, told The Jakarta Post on Sunday.

He said the endorsed proposal was sent to Governor Sutiyoso on
Oct. 24.

Aip said Organda expected the governor's decree would be
issued in the second week of November, after the public had
received information about the fare hike.

He believes the increased fares will not burden customers,
saying that taxis, unlike buses, serve the middle and upper
classes.

"With a better job of giving people the information, I believe
the public will not object to the hike," he said.

He said the council agreed to the proposed hike in return for
a commitment from taxi companies to operate new taxis and not use
vehicles older than seven years.

"We'll only be allowed to hike the rental fee (on the taxis)
three months after the decree is issued.

"So taxi drivers can earn extra profits before the
implementation of the new rental fee," Aip said.

After months of evaluation, Sutiyoso issued Gubernatorial
Decree No. 2503/2000 on Aug. 22, which allowed taxi companies to
raise the flagfall from Rp 2,000 (around 25 US cents) to Rp
3,000, and increase the charges from Rp 900 per kilometer to Rp
1,300 per kilometer. The waiting fee also was increased from Rp
10,000 to Rp 13,000 per hour.

After the governor issued the decree, Organda issued a
regulation on the fare hike on Aug. 24, stating that the new
fares would come into effect on Sept. 1, 2000.

Some taxi companies, the Blue Bird group in particular,
imposed the increased fares and raised the rental fee charged
drivers.

Taxi drivers, however, staged a protest against the fare hike,
saying customers would stop taking taxis because of the increased
fares.

Opposition from the public and pressure from city councillors
forced the city administration to suspend the implementation of
the new fares on Sept. 6.

Of the 32 taxi companies operating in the capital, two have
rejected the fare hike, saying their companies can survive
without raising the fares. The two companies are Steady Safe and
Citra Taxi.

Separately, the chairman of the City Land Transportation
Agency, Buyung Atang, told the Post on Sunday the governor had
yet to decide whether he will issue a decree approving the fare
hike.

"But since the council has approved the proposal, I think the
governor will issue the decree to set the date of the (fare)
increase," Buyung said.

Meanwhile, the deputy chairman of the Indonesian Consumers
Foundation, Agus Pambagio, told the Post Sutiyoso should not
issue the decree before hearing from the public about the new
fares.

"Councillors cannot call themselves representatives of the
people if they endorse the proposal without asking the public's
opinion. The governor should therefore delay issuing the decree
and find out the real reason behind the fare hike.

"I think the public should also have the heart to boycott taxi
companies that apply the new rate," Agus said. (dja)