Indonesian Political, Business & Finance News

Govt to facilitate efforts to procure new public buses

| Source: JP

Govt to facilitate efforts to procure new public buses

JAKARTA (JP): Governor Sutiyoso renewed his commitment on
Tuesday to help public transportation owners procure new and
environmentally friendly buses through a soft loan from a
Chinese banking consortium.

"The city administration is committed to prioritizing the
procurement of new buses as part of our service to the public,
especially those in the lower income brackets," he said at City
Hall.

He said the administration discussed the matter with
representatives of the Jakarta office of the Organization of Land
Transportation Owners and the City Traffic and Land
Transportation Agency.

The administration revealed in May a Rp 1.5-trillion (US$183
million) plan to replace city buses in three years using the
Chinese soft loan.

"Our representatives are now in Beijing to discuss the soft
loan reimbursement, as bus operators will have to reach a mutual
agreement on the matter," he said.

Sutiyoso said the Chinese consortium had given its commitment
to support the program, adding the first batch of 1,000 regular
buses were expected to start operation as soon as December.

"We need 3,000 buses and the delivery will be in three
phases," he said, stressing that old and poorly maintained buses
would have to stop operating or be sent to other regions soon
after the first shipment of buses arrived.

Public buses in the capital are notorious for their poor
service, high fuel emissions and their dilapidated condition.

In his revised accountability speech on Monday, Sutiyoso,
quoting official data, said some 1,420 buses in the city had been
in operation for more than 20 years; 1,860 buses had been in
operation between 15 and 20 years; 4,000 buses between 10 and 15
years; 7,890 between five and 10 years; and 7,000 buses had been
on the streets for under five years.

The Chinese buses are priced at Rp 250 million each for
regular buses and Rp 160 million each for minibuses. The buses
will use liquefied gas instead of gasoline or diesel fuel.

"However, we still have to wait for the results of the
negotiations by our representatives. This is pure business," the
governor stressed.

Sutiyoso said he was optimistic comfortable and
environmentally friendly buses would no longer be just a dream.

"It's my obsession to see cleaner and more representative
buses with affordable rates serving the public during my
governorship," he said.

The governor also called on bus operators to improve their
management and promised the administration would cut the costs of
bureaucracy, all aimed at providing cheaper bus services.

"We still have a lot to do in the transportation sector," he
said. (lup)

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