Foreign firms invited to operate city buses

Foreign firms invited to operate city buses

Ahmad Junaidi, The Jakarta Post, Jakarta

The city administration is considering inviting foreign firms
to operate new buses along certain city bus routes in October
this year.

Deputy Governor for Development Affairs Budihardjo Sukmadi
admitted that it was possible that foreign bus companies could be
involved, given this year's implementation of the ASEAN Free
Trade Agreement (AFTA).

"It is most likely that bus companies from Malaysia or other
ASEAN countries would be able to operate buses here," Budihardjo
said in a hearing with City Council's commission D for
development affairs at the weekend.

The possible involvement of foreign firms has been
strengthened recently as local bus operators are believed to lack
the financial resources to apply the new system, which requires,
among others things, bus drivers to pay a fixed monthly fee of
between Rp 2 million (US$200) and Rp 3 million.

The current system encourages drivers to take as many
passengers as possible, without paying attention to traffic rules
and the safety of passengers, he said.

The new system, which was prepared by Yogyakarta-based Gadjah
University, requires bus passengers to buy tickets provided by
the city administration.

The administration offers certain routes to bus operators
through open tenders.

The new system would be first applied in October for the Blok
M to Kota route. The city administration will invest some Rp 50
billion to purchase some 50 air-conditioned buses and develop new
bus shelters.

The buses would travel along the fast lanes of Jl. Jend.
Sudirman and Jl. MH. Thamrin. In addition some 29 shelters,
located under bridges, would be built for the buses.

The fast lane of certain streets would be marked and only new
buses would be allowed to travel in these lanes.