Hungarian buses may hit city

JAKARTA: Hungarian Icarus buses will likely hit the city streets as Jakarta Governor Sutiyoso was impressed with a presentation made by the bus company on Friday.

"They want to invest here. I told my subordinates to study the matter further," Sutiyoso told reporters at City Hall after meeting with company executives. He declined to mention the amount of the investment.

According to city spokesman Muhayat, the purchase of the buses would be assisted by a financial institution from Hungary, which would provide an export credit loan.

Muhayat said local bus companies grouped in the Land Transportation Owners' Association (Organda) could use the loan to buy the buses.

"The (Icarus) bus company can provide buses for the city's bus renewal program. Their buses operate in many cities in Europe," he said.

The bus renewal program has been stalled as no financial institutions have been willing to provide loans. The institutions argued that there was a danger the loans would not be repaid due to the low bus fares here.

There are currently 9,000 large and medium buses operating in the city, but 60 percent of these are old buses. -- JP