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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