Indonesian Political, Business & Finance News

Kopaja criticizes policy on new buses

Kopaja criticizes policy on new buses

JAKARTA (JP): The city public transportation cooperative
(Kopaja) has demanded simpler procedures in buying new buses for
its members in efforts to them save money.

The head of the cooperative, V.W. Sijabat, said over the
weekend that the current procedure is complicated and increases
the price of new buses.

"Our members have been forced to buy new buses through the
public transport owners association (Organda), while the price of
buses is higher than that set by each make's sole distributor. We
want to deal directly with the importers in the future, and the
current procedure should be revised," Sijabat said.

He alleged that there was collusion between offices and
institutions involved in the purchasing process.

He accused certain parties of maintaining the procedure for
their own interests, with the cooperative members becoming the
victims.

"We have never obligated them to buy the new buses through the
organization," head of Organda Jakarta, Aip Sjarifuddin, told The
Jakarta Post over the weekend.

He said that many vehicle owners bought new vehicles from
dealers at high prices.

Aip blamed the cooperative for not helping its members buy new
buses.

He said that when vehicle owners intend to replace old fleets
they make deals with dealers or middlemen without involving the
cooperative.

The cooperative claims it can not purchases buses directly
from sole distributors of different bus makes due to the
procedures outlined by Organda.

Aip said, however, that the organization is prepared to help
the cooperative deal directly with sole distributors.

"In this way the cooperative members would be able to save
money as authorized distributors sell vehicles cheaper than
dealers or brokers," he said.

A sole distributor may sell a bus for Rp 50 million, while a
dealer's price may be Rp 51 million and a broker's Rp 53 million,
he said. (yns)

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