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.