Council urges meeting on fuel hike plan
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)