Fair fares
Fair fares
In less than a week, the authorities sent two conflicting
messages regarding Jakarta's bus fares. First, Governor Surjadi
Soedirdja said the current lowest fare of Rp 300 (12 U.S. cents)
was too low, prompting speculation that fares would soon be
hiked. Bus companies, many of whom are struggling to survive,
were quick to propose that the minimum fare should be set at Rp
500. The Indonesian Consumer Organization led the campaign in
opposing any increase, saying that through better management, bus
companies could improve their profit margins without having to
raise prices. Others reminded the government of Golkar's election
promise that it would not harm the interests of the people, and
increasing bus fares would contradict that.
Minister of Transportation Haryanto Dhanutirto had the last
word. On Thursday he ruled out any increase in bus fares until
after the People's Consultative Assembly (MPR) meeting in March.
His concern was not whether the current fares were too low or
whether the public could afford to pay the increase. His concern
was for a smooth and successful MPR meeting, a crucial time of
national importance when the president and vice president are
elected, and the government's policy guidelines for the next five
years are drawn up. The decision was politically, rather than
economically, motivated.
Understandably, this is a potentially explosive political
issue. We are reminded of Ujungpandang, capital of South
Sulawesi, which was the scene of an ugly riot last year when
university students took to the streets to protest the local
government's decision to raise fares. One cannot not rule out a
similarly violent reaction in Jakarta, especially ahead of the
MPR meeting, if fares were increased now. The last thing the
nation wants in the run-up to the MPR meeting is trouble in the
capital.
What is unfortunate is that the issue was not explored
thoroughly: whether Rp 300 was really too low to sustain private
bus operators, whether Jakartans really cannot afford the fare
increases, as consumers groups suggested, and a host of other
questions.
What we know is that the transportation system in Jakarta, of
which the public transportation is an important part, is close to
breaking down. Buses seem to get dirtier, more crowded and slower
by the day. This is happening as more and more people are opting
to drive their own cars, which in turn worsens the congestion on
roads, which in turn slows the bus even further, which in turn
encourages more people to drive their own cars. There is no
immediate end in sight to this vicious cycle. Some operators, in
defiance of the rules, even tried to stop running buses in the
lowest fare category because they were no longer commercially
viable.
As long as the city continues to rely on private operators,
bus fares must be structured in a way that makes running buses
commercially viable. Rp 300, as the Jakarta governor himself has
admitted, is too low. Besides, with Jakartans becoming more
affluent, their main concern is no longer cheap fares. More and
more people are demanding convenience and efficiency, besides
affordability. The current public transportation system in
Jakarta only offers affordability. This underlies the reason why
many people prefer to drive their own cars, in spite of the
traffic jams and parking difficulties.
Raising bus fares may not solve Jakarta's transportation woes
overnight, but it would be a good start. At some stage, a balance
between price and convenience must be found. The long term
solution of course is a mass rapid transit (MRT) system,
something which the city has agreed to build. But construction
has yet to start, in spite of the urgency. Given the huge
investment it requires, any such system would not come cheaply.
This means, sooner or later therefore, the public will have to
fork out more money to pay for public transportation that
promises to be efficient.