Indonesian Political, Business & Finance News

Federation against increase in fares

Federation against increase in fares

JAKARTA (JP): The All-Indonesia Workers Union Federation has asked the Ministry of Transportation to turn down the transportation owners association's request for an increase in public transportation fares, saying that the policy will only benefit the owners.

The chairman of the federation's sector for transportation, M. CH. David said on Saturday that an official letter had been sent to the ministry.

He said the association's demand for a 130 percent increase in transportation fares could hamper political stability and affect economic growth.

Last October the association proposed that fares on regular buses be increased from Rp 250 (11 U.S. cents) to Rp 500, on Patas buses from Rp 550 to Rp 900, and on air-conditioned buses from Rp 1,300 to Rp 1,750.

The association also wants the current taxi flag fall of Rp 900 to be increased to Rp 1,500, and the inter-city bus fares to be determined by the kilometer.

At the time, association chairman Aip Syarifuddin said the current fares were not suitable, resulting in poor public transportation services.

David said on Saturday that the increase in the fares would only benefit the transportation company owners.

"In taxi and public bus companies the shares between the owners and the drivers is not fair," he said.

According to David increasing fares is not the only way to deal with expensive maintenance and fleet renewal.

David blamed the huge expenses on the testing, operating and business permits the owners must pay. "The excessive fees could have been set aside for maintenance and buying new fleets," he said.

"Compulsory testing every six months has so far not improved the road worthiness of buses," he added.

He also said that the government's political will to abolish illegal levies would help both the transportation owners and the drivers to save money.

"We want a tripartite approach to mobilize all potential transportation sectors. In this way we can build a solid national transportation system," David said. (sur)

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