Govt to establish team to study toll increase

JAKARTA (JP): The government will establish an interdepartmental team to study a possible 30 percent increase in tolls on major toll roads this year, according to Minister of Settlement and Regional Infrastructure Erna Witoelar.

Erna said on Tuesday that the team would discuss the amount of the increase and the timing for its implementation.

"We can no longer decide the increase on our own, the proposal to increase tolls must be pursued through consultation with various parties," she said.

The team would consult with the House of Representatives, the Indonesian Toll Companies Association, the Indonesian Transportation Society and a number of non-governmental organizations.

Erna explained that her earlier statement that the government would likely propose a 30 percent toll increase was not final, as it would still require the approval of the House.

"There has been no agreement between the government and the House over the amount of the increase or its timing," she was quoted by Antara as saying.

Speaking at a hearing with the House of Representatives' Commission IV on infrastructure, Erna disclosed that the government wanted to increase tolls by 30 percent.

With the planned increase, the tolls for inner city toll roads would be raised to Rp 3,500 (about 30 U.S. cents) from Rp 3,000 for cars, vans and minivans.

Meanwhile, the toll for Jagorawi toll road would be raised to Rp 5,500 from Rp 4,000, and the toll for the Jakarta-Cikampek toll road would be increased to Rp 9,000 from Rp 6,500.

Responding to the proposal, legislator Enggartiasto Lukito of the Golkar Party said that the government had better wait until next year and not increase the tolls this year.

Enggartiasto contended that the government had burdened people enough with the hike in payments for various utilities, including electricity, public transportation fares and fuel.

Nevertheless, Erna said, the government wanted to begin to implement the toll increase in stages this year as tolls had not been increased since 1992.

She noted that state-owned toll operator PT Jasa Marga and a number of private toll companies had proposed an increase in tolls to the government on several occasions, but the government was still considering the appropriate timing to raise the tolls.

The government, Erna said, could understand the argument presented by toll companies, namely the increasing overhead costs, while the toll had remained unchanged in over eight years.

According to Government Regulation No. 40/2001, tolls could be adjusted to reflect inflation rates every three years, with a maximum increase of 25 percent.