Indonesian Political, Business & Finance News

KAI abruptly hikes train fares

| Source: JP

KAI abruptly hikes train fares

Yuli Tri Suwarni, The Jakarta Post, Bandung

Without any prior notification or consultation with the House of
Representatives (DPR), state railway operator PT Kereta Api
Indonesia (PT KAI) has abruptly increased train fares for economy
class seats by 13 percent.

The increase came into effect on March 1.

The fare increase was based on a resolution by PT KAI's
management issued on Feb. 25, 2004, which was signed by its
director of operations, Juda Sitepu. The increase in fares for 21
economy class trains operating on Java and Sumatra islands was
only notified to the public at train stations.

This is despite the fact that increases in economy class fares
must be approved by the House as they are related to the amount
of the public service subsidy paid by the government to the
company.

It appears that PT KAI has not yet printed tickets showing the
newly adjusted fares. In the case of tickets for economy class
trains departing from Kiaracondong station in Bandung, the old
price is simply crossed out and the new one penciled in.

KAI spokesman Patria Supriyoso could not be reached for
comment.

Akhmad Sujadi, the head of public relations for Bandung's
Operations District II, confirmed the fare hike on Thursday.

He admitted that the written notification he received on the
evening of Wednesday, Feb. 25, had not been discussed beforehand.

"As time was limited, we were ordered to only inform
passengers by putting up banners in the stations," he told
reporters in Bandung.

He said that in KAI's Operations District II in Bandung, the
three economy class trains that it operates -- the Pasundan on
the Bandung - Surabaya line, the Kahuripan on the Bandung -
Kediri line and the Kutojaya Selatan on the Bandung - Kutoarjo
line, all of which depart from Kiaracondong station -- had all
been affected by the fare increases.

Fares were increased on average by Rp 4,000 per ticket, with
the biggest hike of Rp 5,000 affecting the Pasundan train. As a
consequence, the fare from Kiaracondong station in Bandung to
Surabaya now stands at Rp 41,000.

He said the increases were understandable as the last economy
class fare hike, scheduled for last year, had been canceled.

Operations District II had suffered a loss of Rp 3.34 billion
as it had been refused permission to charge an extra Rp 4,000 for
each of the 860,000 economy class passengers the company carried
last year.

Many economy class passengers were taken by surprise by the
abrupt increases. Simin, 25, a factory operative working in
Bandung who hails from Cilacap in Central Java, for instance,
complained of the lack of notice of the fare hike in the media.

"When I arrived at the station, the fare had already been
increased. What would have happened if I hadn't brought enough
money to pay for my tickets?" he asked.

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