Indonesian Political, Business & Finance News

Govt considering proposal to raise transport fares

| Source: JP

Govt considering proposal to raise transport fares

JAKARTA (JP): Directorate General of Land Transportation is in
favor of the proposal to increase public transportation fares,
and will recommend that the Ministry of Transportation approve
the plan.

Head of the Organization of Land Transportation Owners,
Organda, Aip Sjarifuddin said yesterday that Director General of
Land Transportation Soejono had principally approved of the
proposal.

Aip said that Organda members met with Soejono on Thursday to
explain the importance of increasing the fares of public
transportation companies.

Soejono, Aip added, understood Organda's reasons for the
increases, that the current fares do not meet current conditions
and that public transportation fares have not been increased
since 1990.

Organda has proposed that fares on regular buses should be
increased from Rp 250 (11 U.S. cents) to Rp 500, Metro Mini bus
fares from Rp 300 to Rp 700, Patas buses (quick, limited service)
from Rp 550 to Rp 900 and air-conditioned buses from Rp 1,300 to
Rp 1,750.

Aip added that the current taxi flag fall of Rp 900 is too
low. Organda suggested it be increased to Rp 1,500, while stating
that inter-city bus fares should be determined per kilometer.

Organda has formed a team consisting of five persons to lobby
related officials as well as members of the House of
Representative.

"The team should make those people understand the main reasons
for the increases," Aip said, adding that members of the team are
himself, Irawan Sarpingi, Jauhari Peranginangin, Asrul Aziz Taba
and G.T. Surbakti.

Meanwhile, Chairman of the Indonesian Democratic Party Lukman
F. Mokoginta urged the government to take care in handling the
matter because it can affect the country's economic condition.

"Public transportation fares are related to people's incomes,
therefore the government should be careful in making a decision
concerning the matter because it can cause various problems,"
Lukman said.

On the other hand, he said, people will protest against the
raises if their incomes remain the same. "We have to be aware and
more realistic. Many people will most likely be unable to afford
the new fares," he said.

He added that the increase in public transportation fares
could also affect the prices of various goods and staple foods,
and in the end it could cause inflation.

Services

Member of the United Development Party Saud Rachman shared his
opinion, saying that it would be better if Organda improved
public transportation services first before demanding the
government agree to increasing the fares.

"Public transportation companies in the city do not deserve
the raises unless they improve their services," Saud said.

When told that Organda claimed the poor services are caused by
the fact that many public transportation owners cannot afford to
buy spare parts for their fleets and this condition forces them
to use second-hand replacement parts, Saud said, "It is just an
excuse".

"The organization just made an excuse, on the contrary they
get a lot of profits from that condition," he said.(yns)

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