Fuel Prices Rise, Bus Ticket Prices Stable? Organda Chairman's Response

JAKARTA - Although the government assures that fuel stocks and prices are stable, this situation is also disrupting the public transportation services business in Indonesia. This is because electric vehicles are being continuously promoted by the government as a solution to the uncertainty in fuel prices and supply. Anthony Steven Hambali, Chairman of the Tourism Transport Division of the Indonesian Public Transport Operators Association (Organda), stated that electrification for public transport is a recommendation for the long term. Currently, he believes it is more important to prioritise fuel supplies for public transport. By giving priority to fuel supplies for public transport, it is believed that the public will be more inclined to use public vehicles rather than private ones. Anthony also suggested that fuel subsidies should be more targeted and directed straight to transport operators. He said he would prefer adjustments to ticket prices to follow fuel prices. Furthermore, Anthony noted that the prices of bus oil and tyres have already increased. However, bus ticket prices are forced to remain unchanged to safeguard the market share of inter-provincial bus passengers. Therefore, another short-term suggestion is subsidies for toll tariffs and incentives for import costs of bus spare parts. For long-term plans, conversion programmes can be carried out gradually, either hybrid or electric. Organda supports electrification, but with the principle that it must be business-healthy. “Because we have been pioneering this service for the public for a long time, so don’t shut down our business. And it should not burden operators, and be based on ecosystem readiness,” he said.