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)