Higher fares again

Higher fares again

The decision announced by Jakarta Governor Sutiyoso Thursday
to raise taxi and PATAS air-conditioned bus fares in the city is
logical and unavoidable following the recent increase in fuel
prices. It was also the logical step to take after regular bus
and minibus fares were increased Monday as a consequence of the
fuel price hike and other fare rises. In other words, it was a
step that everyone must have seen coming given the government's
commitment to carry through the economic reforms mandated by the
International Monetary Fund. Nevertheless, the decision is
certain to add to the people's existing difficulties and thus
give further reason for discontent.

While as far as the public is concerned the new fares
represent quite a substantial increase -- around 50 percent or
more -- over the old, they don't help public transportation
company operators to adequately cover their regular maintenance
costs and overheads.

Clearly, dissatisfaction on both sides of the equation is
difficult to avoid. While Jakarta's citizens are already
anxiously calculating the coming inescapable rise in their
personal monthly traveling and commuting expenses, taxi operators
are expecting a slump, which they expect to last for as long as
it takes for passengers to get over the initial shock of having
to pay the considerably higher new fares. And not without reason.
Taxi operators depend mostly on passengers from the middle- and
lower-middle income groups for their income. For these people,
the city's better bus services provide a cheaper if less
comfortable means of transportation.

Though bus operators may consider themselves more fortunate in
that there are practically no cheaper public transportation
alternatives for people in the city, students may on occasion
find it difficult to find transportation to and from school as
bus and minibus drivers may refuse to take them despite official
threats that their operating licenses could be suspended if they
refuse. Many bus operators complain that the officially
authorized student fare of Rp 100 (1.1 U.S. cents) is much too
low and should be at least twice as high.

In crisis conditions such as the present, it is certainly not
easy for operators and city officials to come up with a solution
that satisfies all, particularly the transportation companies and
the commuting public. Certainly bus and taxi companies cannot be
expected to operate at a loss on a continual basis and still
survive. The best that people can do for the present is to
allocate their expenses with care and wait for the inevitable
economic equilibrium to re-establish itself.

The widespread objections to the fare hikes are certainly
understandable in current conditions. The economic and monetary
crises are making it difficult enough for people to make ends
meet even without the fuel and fare hikes. Under present
circumstances, however, we don't quite see how the government can
extricate itself from its commitment to gradually eliminate
burdensome subsidies, which must unfortunately lead to price
increases in many areas.

With persistence, however, conditions are sure to improve. The
question is whether people will or can have the patience to wait
for months, or even years, for things to start looking up. The
one thing we all can do to make life easier, however, is to avoid
any unnecessary actions that can aggravate the situation and make
life's burdens even heavier, especially for the less privileged
among us.