Jakarta to buy new buses from Texmaco
Jakarta to buy new buses from Texmaco
JAKARTA (JP): The city administration will purchase buses
produced by problem-plagued company PT Texmaco upon request of
the central government, Governor Sutiyoso disclosed on Tuesday.
Speaking to the media on the sidelines of a hearing with the
House of Representatives Commission II for legal and national
political affairs, the governor said the request came despite his
doubts about the quality of the buses.
Sutiyoso said the city administration would, however, give
Texmaco a chance to prove its promise to produce vehicles which
meet desired standards.
"But if they are not sure they can make it, they should just
says so," Sutiyoso said.
Many have questioned the Texmaco's capability to produce buses
since it has been more popularly known as a truck maker.
In a memorandum of understanding signed with the Jakarta
chapter of the Organization of Land Transportation Owners
(Organda) recently, PT Texmaco Perkasa Engineering agreed to
produce 2,000 buses over a period of two years, out of the 5,000
buses now required to replace the old fleet which have been
roaring up and down the capital's roads for at least 15 years.
To fill the gap, the city administration will import the
remaining 3,000 buses from China.
Sutiyoso also said he was seeking an import tax reduction of
between 5 percent and 10 percent for buses the city had ordered
from China. The government has so far insisted that the imported
buses will be subject to the normal import tax of 40 percent.
A ray of hope was given on Tuesday by Minister of
Communications Gen. (ret.) Agum Gumelar, who said he would
support the governor's appeal as long as it was in the interests
of the general public.
"The point is not where we can get the buses. I will support
any decision which is taken for the sake of the people's
welfare," Agum told The Jakarta Post on the sidelines of a
hearing at the House of Representatives.
He said the city administration's request for tax reduction
"is understandable" because the purchase was related to public
services.
"But it is not me who has the authority to recommend the tax
reduction, but the Ministry of Industry and Trade," Agum said.
The Chinese public vehicles comprise 54-seater buses and 26-
seater minibuses. The first type are being offered at Rp 250
million (US$29,760) each, while the minibuses will sell for Rp
160 million each.
On the Mass Rapid Transportation (MRT) project in the capital,
Sutiyoso suggested that the central government place it on the
top of its priority list.
Sutiyoso said the construction of the mega project is ready to
start.
"President Aburrahman Wahid has concurred on the urgency of
the project," Sutiyoso told The Jakarta Post.
"Now we will just wait for the President's official approval."
Sutiyoso said that the project, which will cost up to US$1.25
billion, would be funded through the Miyazawa Plan and the
Special Yen Loan program.
The Japanese government has given its commitment to finance
the project, promising a special yen loan with a 7.5 percent
annual interest rate.
The special loan package will have a maturity period of 40
years with a grace period of 10 years.
Sutiyoso said there are no constraints in realizing the plan
unless the government opts to start two other primary projects
namely the installation of a natural gas pipe from Sumatra to
Java and the construction of double-tracked railroads from
western to eastern Java. (dja/04)