Indonesian Political, Business & Finance News

Jakarta to raise city transport fares soon

| Source: JP

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.

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