Council urges meeting on fuel hike plan
JAKARTA (JP): City council proposed on Wednesday a meeting between the Organization of Land Transportation Owners (Organda) and the City Land Transportation Agency (DLLAJ) to find a solution acceptable to all parties affected by fuel prices hikes scheduled for Oct. 1
Councillor Ali Imran Husein from Commission D on development affairs said city council understood that fuel hikes combined with the restrictions on raising bus fares in the capital might burden bus companies.
"The fuel hike will likely be followed by a hike in spare parts. That is why we have to find a better solution, instead of letting Organda screw up its service," Ali said on Wednesday.
He said city council would try to help Organda by channeling its aspiration to the House of Representatives and the government that bus companies receive subsidies.
"The bus companies could probably be given cheaper spare parts or lower taxes to keep their businesses going.
"We have to accommodate them because they provide a public service," Ali said.
Organda's Jakarta chapter chairman, Aip Sjarifuddin, has vowed to obey the government's instruction not to raise bus fares after the 12 percent increase in fuel prices.
Bus companies will likely face higher prices for other services and goods, including spare parts, as a result of the hike. This has led to fears that services will deteriorate along with the rising prices of running and maintaining buses.
The government earlier planned to form a team with Organda to discuss subsidies. However, the plan was shelved.
The hike, which was approved by the House of Representatives in February, will mean premium gasoline going up from Rp 1,000 (11 US cents) to Rp 1,150 (13 US cents) per liter, diesel fuel to Rp 600 from Rp 550, kerosene to Rp 350 from Rp 280 and bunker oil to Rp 400 from Rp 350.
Chairman of the transportation agency's Jakarta chapter, Buyung Atang, said on Wednesday his office would take firm action against bus companies that failed to provide better services to the public. Sanctions would include the revocation of their operational permits, he added.
"They (bus companies) promised before they hiked their fares last time they would improve their services, but they never did.
"We will stick to the regulation that if they fail to provide good services, we will revoke their permits," Buyung said.
The earlier hike, which was effective on April 30, meant the cost of a ride on a regular bus increased from Rp 300 to Rp 500, on a minibus from Rp 500 to Rp 700, and on a Patas air- conditioned bus from Rp 2,300 to Rp 2,500. Student fares were increased from Rp 100 to Rp 200.
"We suggest that Organda seek help from city council. Maybe it could help fight for a subsidy from the central government," Buyung said.
Deputy governor for administrative affairs Abdul Kahfi said the administration would anticipate any strike to oppose the fuel hike.
"We will hold a coordinating meeting tomorrow (Thursday) to anticipate any strikes, especially in the capital's business centers," Kahfi said on Wednesday.
He said strikes were possible at bus terminals, the State Palace, the House of Representatives (DPR) compound, City Hall and the capital's main thoroughfares.
Speaking to The Jakarta Post from Beijing, China, Aip said on Wednesday that Organda had no plans to go on strike in protest against the fuel hike.
"No, we have never planned such a strike. It's wrong if people are saying we will hold a massive strike on Thursday," he said.
Aip is in China accompanying Governor Sutiyoso on an official trip. (dja)