House okays 25% fare hike during Idul Fitri exodus

House okays 25% fare hike during Idul Fitri exodus

JAKARTA (JP): The traditional 25 percent increase in bus fares
during the post-fasting Idul Fitri holiday exodus will be
maintained, the House of Representatives announced on Wednesday.

"We decided the 25 percent fare hike is the best for all,"
spokesman for the House Commission IV for transportation affairs
Ahmad Muqouwam said.

The decision was reached in a meeting between the commission,
the transportation minister Agum Gumelar and the Association of
Public Land Transportation Owners (Organda) at the House.

The government and Organda had both demanded between a 35
percent and 50 percent increase, citing higher operational costs
incurred over the economic crisis.

Muqouwam, from the United Development Party, said the House
could not agree to an extra increase because an estimated 80
percent of passengers who are going home for the holiday are
classified as poor.

"We reject a more than 25 percent increase for fear of public
disorder, which will affect the stability of the new government,"
Muquowam said.

To compensate Organda for any losses, the House pledged to
help the organization obtain a government subsidy on lower taxes
for bus spare parts.

The fare increase will take effect one week before and after
Idul Fitri, which is expected to fall on Jan. 8.

The House urged transportation companies to improve their
services during the holiday exodus and would tolerate only 10
percent more passengers more than the official capacity in any
bus.

Chief of Organda's Jakarta branch Aip Syarifuddin said after
the meeting the organization would comply with the agreement.

The association had repeatedly asked the government to
increase bus fare by 50 percent to cover the skyrocketing prices
of spare parts resulted from the prolonged crisis.

In the holiday season, fare increases are regularly applied
since most of the buses return to Jakarta with empty seats.

Meanwhile, the ministry's Director General of Land
Transportation Santo Budiono said only 79 percent of the 22,000
buses ready to transport holiday revelers met the minimum safety
standards. "The rest need repairing," he said.

He estimated the number of nationwide holiday makers at
between 9 million to 10 million. (jun)