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KAI raises railway fares

| Source: JP

KAI raises railway fares

Yuli Tri Suwarni, The Jakarta Post, Bandung

Business and executive class train fares will rise by between
five percent and 33 percent on Feb. 1 to compensate for past
losses, state-owned railroad operator PT Kereta Api Indonesia (PT
KAI) announced in Bandung on Tuesday.

PT KAI spokesman Patria Supriyono said the decision to raise
the fares followed the earlier cancellation of economy-class fare
increases, and involved only 19 trains serving its networks in
Java and Sumatra.

The fare hikes, according to Patria, were based on passenger
load rates of more than 85 percent, passenger purchasing power
and competition with other forms of public transportation, such
as airlines and ferries.

"Therefore, certain fares are actually being reduced and we
are extending discounts to passengers of the Argobromo, Gumarang
and Argowilis super-executive class trains," Patria continued.

The fares for the Argobromo Anggrek train (Jakarta-Surabaya)
is being reduced from Rp 240,000 to Rp 220,000 and the Gumarang
(Jakarta-Semarang) train from Rp 175,000 to Rp 165,000, while
the Argowilis train (Bandung-Surabaya) will have a special fare
of only Rp 165,000 from Monday through Thursday as against the
normal fare of Rp 195,000.

Fifteen trains running in Java and four others in Sumatra will
have their fares increased. Ten of them have the highest load
factors in Java, including business and executive class trains
bound for Jakarta, and will be subject to 33 percent fare
increases.

The Parahyangan train (Bandung-Jakarta) sees fares raised from
Rp 30,000 to Rp 40,000 for business class and from 45,000 to Rp
60,000 for executive class. The rises for nine executive and
business trains from Jakarta to Surabaya, Malang, Yogyakarta,
Semarang, Jombang, Kutoarjo, Cilacap and Cirebon range from Rp
10,000 to Rp 20,000.

From Bandung, apart from the Parahyangan train, the fares for
the Lodaya train bound for Solo and the Mutiara Selatan train
bound for Surabaya are also being increased by Rp 10,000
respectively.

Outside Bandung and Jakarta, three other trains that will have
their fares raised by between Rp 5,000 and Rp 10,000 are the
Sancaka (Yogya-Surabaya), Mutiara Timur (Semarang-Banyuwangi) and
Logawa trains (Purwokerto Banyuwangi). Business and executive
class rail fares in Sumatra that will increase by the same amount
are the Sindangwarga, Sriwijaya, Bandarpati and Sribilah trains.

Patria added that the revenue targets from the fare hikes
could not yet be calculated as yet in view of the increased
discounts for elderly people and pensioners of between 20 percent
and 30 percent, and the fare exemptions for children under three
traveling in business and executive classes.

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