Wed, 02 Mar 2005

Jakarta to raise city transport fares soon

Damar Harsanto, The Jakarta Post, Jakarta

Just one day after the announcement of fuel price increases, Governor Sutiyoso revealed on Tuesday that his administration would be increasing public transport fares, including for the busway.

"Of course, public transport fares will follow the fuel price hike, including the busway ... We will discuss the matter with the City Transportation Council, public transport operators and City Council as soon as possible," Sutiyoso said at City Hall.

Sutiyoso did not mention the size of the increase, but the Jakarta chapter of Land Transportation Owners Association (Organda) has proposed an increase of 10 percent.

Organda Jakarta chairman Herry JC Rotty said that the increase was inevitable as the fuel price hike would lead to an increase in operational costs for public transport businesses.

"An increase of 10 percent is reasonable. Otherwise, many public transport operators will go bankrupt," he said.

Minister of Transportation Hatta Radjasa revealed that the central government was leaving it to provincial administrations and councils to decide whether or not to increase public transport fares.

However, Hatta said the government would only tolerate a maximum increase of 10 percent.

The city has more than 250,000 public buses of various sizes.

Fares for medium-sized buses, like Metromini, Kopami and Kopaja, are currently Rp 1,250, economy buses Rp 1,100, and Patas buses Rp 1,500. A busway ticket is Rp 2,500.

Separately, TransJakarta Busway Management head Irzal Z. Djamal confirmed that his management team was preparing an analysis of the impact of the fuel price hike on busway operational costs.

"We will submit the analysis to Governor Sutiyoso for a final decision," Irzal said in a statement.

Irzal claimed that the fuel price increase would deal a blow to the busway.

He had recommended to the administration that ticket price increases be combined with a higher subsidy from the city budget in order to help plug ballooning expenses.

Separately, City Transportation Agency head Rustam Effendy Sidabutar called on public transport operators not to raise fares illegally before the administration officially announces new ticket prices.