'Higher fares needed to save transport firms'

'Higher fares needed to save transport firms'

JAKARTA (JP): Two minibus companies have shown support for the
proposal to increase minibus fares and said that many companies
will be out of business if the government refutes the proposal.

C.H. Sunarto, chairman of Kopaja, a transit vehicle owners'
cooperative, said that owners of minibuses had suffered hardships
because the fare is too low to cover operational costs.

"Many of the cooperative members have been suffering from this
condition and sooner or later most of them will loss their
business," Sunarto said, adding that they may go on strike.

Sunarto said that it would be unfair if the city
administration refuses to increase the fares, especially when it
is aware of various aspects which cause increase in operational
costs.

Kopaja, he said, subsidizes students by about Rp 1.1 billion
per year because students pay Rp 100, a third of the normal fare.

Sunarto added that operational costs depend on various
aspects, such as the price of oil which has recently increased
from Rp 185 per liter to Rp 385, and the price of tires from Rp
70,000 to Rp 150,000 each.

"The city administration also charges us Rp 75,000 per year
for operational permits," he said, adding that the daily income
does not cover all the costs.

President commissioner of PT Metro Mini, M. Taufik, said that
currently only 75 percent of its 3,071 minibuses are operational.

Minister of Transportation Haryanto Dhanutirto said on Monday
that there would not be any increase in public transportation
fares, but he said that his office was still studying the
possibility of an increase.

The organization of land transportation owners, Organda, has
proposed to the Ministry of Transportation that public
transportation fees be increased.

The proposal suggests that fares on regular buses should be
increased from Rp 250 (11 U.S. cents) to Rp 500, Patas buses
(quick, limited service) from Rp 550 to Rp 900, minibuses from Rp
300 to Rp 700, air-conditioned buses from Rp 1,300 to Rp 1,750
and taxi's flag fall from Rp 900 to Rp 1,500.

Organda yesterday urged the government to subsidize public
transportation companies if its proposal is turned down.

The public has also reacted to the plan, saying that the
increase could influence the price of other things such as
primary goods.

Too high

"The plan to increase bus fares is fine, but control is needed
to handle the prices of primary goods," Rique Alves Nilton, a
government employee, told The Jakarta Post yesterday.

He said it would be wise if the government gradually increased
fares, say 10 percent to 25 percent instead of the proposed 35
percent to 130 percent increases.

The increases are higher than the increase in civil servants'
salaries, which was only 10 percent last April, he said.

"People would have to least spend Rp 30,000 per month just on
transportation," he said. "Can you imagine a civil servant with a
starting salary of Rp 150,000 financing himself or even his
family?" he asked.

"I will keep paying Rp 100 for the bus, Rp 500 is too much for
us," Samin, a high school student, said.

Taxi driver Ladjib said the increase of taxis' flag fall
will cause "public disorder".

"Usually, three months after the increase the number of
passengers will decrease and this lessens our income," he said,
adding that, however, the increase is "logical" since spare parts
for cars have increased over the last six months. (yns/03/icn)