Govt told to be fair in giving loans to transportation firms

JAKARTA (JP): The government has been urged to be fair in issuing credit to help the city's ailing public transportation operators.

La Ode Djeni Hasmar, the head of Wahana Kalpika Cooperatives (KWK), said on Tuesday that it was not fair to provide cheap credit worth Rp 94.1 billion to wide-bodied bus operators alone.

The credits should be divided equally between wide-bodied buses, minibuses and minivans, he said.

La Ode pointed out that minivans were at the forefront of public transportation in the city, particularly in residential areas.

"I don't know why wide-bodied buses should get priority. Minivans pick up passengers from alleys and residential areas then take them to main roads. Buses only take their passengers from bus stops to the terminals," he said.

He said that most operators of the minivan fleet were ready to go on strike over the issue, adding that currently only half of the 34,000-strong minivan fleet is operational because of the high cost of spare parts.

Meanwhile, chairman of the city branch of the Organization of Land Transportation Owners (Organda) Aip Sjarifuddin hailed the government's decision to give priority to the city's fleet of buses, many of which have been temporarily forced out of operation by the high cost of spare parts.

"From observation we can see which vehicles need the loans the most. Apparently the government decided that buses are the most seriously troubled and their daily operations were in danger of being adversely affected if they did not get access to credit," he said on the sidelines of a conference of the city chapter of the Indonesian Chamber of Commerce and Industry (Kadin) here.

"It chose to prioritize buses in the initial phase. It doesn't mean that the others are not important. All vehicles have the same importance," he said.

The government announced last week that it had earmarked Rp 94.1 billion to provide cheap credit facilities to bus companies in 15 major cities throughout the country. Interest on loans released from the fund will be set at 6 percent.

Coordinating Minister for Economy, Finance and Industry Ginandjar Kartasasmita said transportation companies deserved the cheap credit facility because they were prevented by government regulations from raising their fares in response to the soaring price of imported spare parts.

Prices of spare-parts have reportedly increased by up to 300 percent during the economic crisis. (ivy)