Indonesian Political, Business & Finance News

'Fare hike raises price of goods'

'Fare hike raises price of goods'

Vendors at traditional markets in the capital are well versed in the ups and downs of basic commodity prices. And a number of these vendors told The Jakarta Post that past experience had taught them that any increase in public transportation fares had a very bad affect on their businesses.

Sujito, 36, a vegetable vendor at the Palmerah market in Central Jakarta, who was born in Pati, Central Java, and resides in Tangerang.

It is common knowledge among vendors that any increase in transportation fares will increase the price of other goods, especially basic commodities. Vegetables are among the first items that will be affected by the fare increase, because of the commodity's dependence on transportation services.

Surely this will just be another burden on us vendors. As you see, the market is very quiet and I still have a lot of stock. If I don't sell my stock, they will go bad soon.

The fare increase will force people to cut back on their spending, which will further slow business in the market.

The fare increase will also add to my costs because I use public transportation to go home every day.

Sularti, 37, a spice vendor, also at Palmerah market, who was born in Klaten, Central Java. The resident of Kemandoran, South Jakarta, has lived in the capital for more than 30 years.

For low-income vendors like us, any increase will hurt our already staggering businesses. Recently, I have found it hard to even make a Rp 500 profit (per transaction) because of the slow business and higher costs.

Even before the city administration set the new fares for public transportation, I already had to pay higher fares. To get home to Kemandoran by ojek (motorcycle taxi), for instance, I have to pay Rp 5,000 now, when I used to pay Rp 3,000.

And I also have to pay more to the workers who help carry my bags of goods. They want Rp 3,000 just to carry a small bag, when only last month they would take Rp 1,000.

It's hard to make a profit in this business. The costs almost exceed the income.

I hope the government does something to at least minimize the price increases if the fare hike is inevitable.

Muhadi, 46, is a vegetable vendor at the Tomang traditional market in West Jakarta. He was born in Klaten and moved to Jakarta in 1973. He now resides in Tomang, West Jakarta.

After they announced the plan to increase fares, the transport service providers increased the fees they charge to vendors. Now, a minitruck driver wants Rp 50,000 to drive from the Kramatjati wholesale market in East Jakarta to here. We only used to have to pay Rp 35,000.

Even though I have to pay more for the transportation, I can't just pass the cost onto my customers. They wouldn't protest if I increased the price of my goods, they just wouldn't buy from me. That's why the best thing I can do is bear the costs myself. But it means my profit margin will be eaten up, and I will go out of business if the situation persists.

I would be grateful if the government canceled the planned fare increase because that would cut my costs and save my business. -- JP

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