Drivers oppose planned taxi fare increase

JAKARTA (JP): A plan to increase taxi fares is being opposed by most taxi drivers, who say that it would only benefit taxi companies and make drivers cash cows who would have to work harder to meet increasing targets to fill the companies' coffers.

Interviewed separately on Saturday, some cab drivers aired their indifference to the planned hike.

A Kosti taxi cooperative's driver, Solehan, said, "I've heard of the planned hike but there has been no official announcement from the company over the increase yet."

"Increased fares will inhibit people from using taxis as their transportation means, which eventually will decrease our income," he said.

Taxi companies under the Organization of Land Transportation Owners (Organda) have proposed two price increase schemes.

The first scheme would increase a taxi's flag fall to Rp 3,500 (50 U.S. cents), from the current Rp 2,000, and charge Rp 1,500, up from Rp 900, per kilometer. The second scheme would charge an initial flag fall of Rp 4,000 and Rp 1,500 per kilometer.

"I think they should increase the flag fall to Rp 5,000 but retain the Rp 900 charge per kilometer," Solehan said.

A Kopex taxi cooperative driver, who spoke on the condition of anonymity, lambasted the plan, saying that it would only make drivers the company's cash cows.

"The company will set a higher target for us, while less people will use taxis. In the end, the increase won't give any benefits to drivers," he said.

"We also have to pay for maintenance and fuel consumption with our own money," he said, citing, as an example, the price of one lubricant has increased from Rp 38,000 to Rp 58,000 per liter.

Organda's Jakarta chapter secretary, Azrul Azis Taba, said the organization has submitted the planned fare hikes to the city administration.

"We're now waiting for Governor Sutiyoso's decision on our proposals. The increases are important to cover our operational costs," he said earlier this month.

Interviewed separately, Blue Bird group's operational director Chandra Suharto said the hike was to cover maintenance costs as well as to enable the company to upgrade its car fleet.

"The price of a new car has jumped from Rp 40 million before the economic crisis to Rp 125 million," he said in a telephone interview last week.

"It's not only because of the rupiah weakening, but also because of tax problems after the government revoked its tax facility, which used to be provided for taxi operators," he said.

Chandra said the government used to free taxi operators from the obligation of paying value-added tax, import tax and income tax for all imported cars to be used as taxis.

"If the government keeps granting facilities for those taxes, cars would only cost Rp 70 million each," he said.

Commenting on the possibility that taxi drivers' revenue would decrease following the hike, he said his company would give allowances to drivers during the transitional period.

"The amount varies and we'll evaluate it each month. Usually the transitional period is six months.

"We also decrease the amount each month because the number of passengers usually increases each following month," Chandra said.

Data at the City Land Transportation Agency shows that there are more than 22,000 taxis operating in the city, with more than 24,000 taxi licenses granted to companies. (nvn)