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Land transport body disappointed by fare proposals

Land transport body disappointed by fare proposals

JAKARTA (JP): The Jakarta chapter of land transportation
owners association, Organda, is disappointed by the government
proposal on the increase in public transportation fares.

The head of the association, Aip Sjarifuddin, said yesterday
that Organda appreciated the government's response to its outcry
on the fares, but the new fares proposed by the Ministry of
Transportations are still too low. "How can our members
renew their fleets if their revenues from fares are too low ?"

Minister of Transportations Haryanto Dhanutirto in a hearing
with the House of Representative on Thursday proposed the
increase in public transportation fares.

According to the proposal, the fares for regular buses will be
Rp 300, or Rp 50 higher than the current fares, the Metro
Mini/Kopaja fares will be Rp 450, from the current Rp 300. The
fares on Patas buses are proposed to become Rp 650, from Rp 550,
while the taxi flag fall is proposed to increase to Rp 1,500 from
Rp 900, and per kilometer charge will be Rp 500, Rp 50 higher
from the current charge.

According to the proposal submitted to the government last
year, Organda would like the fares of regular buses to be fixed
at Rp 750 (US 33 cents), those of Patas buses at Rp 900 and those
of air-conditioned buses at Rp 1,750 from Rp 1,300.

"We need to organize a new fare system," Aip said.

The government plans to introduce the new fares either in
January or in March next year. But Aip said; "The sooner the
better."

Recently, Aip said that it would be better for the
transportation companies if the government were to arrange a
reduction of tax rates and import duties rather than increasing
the transport fares.

He said that the government could also arrange loans for small
companies, locally known as low-interest KUK, for Organda
members. Currently, most transportation companies buy vehicles
through loan facilities with a 30 percent interest rate, while
the KUK scheme charges only 12 percent interest.

Consumer

Meanwhile, the Indonesian Consumer Protection Foundation
(YLKI) said yesterday that the increase in public transportation
fares is understandable.

The head of the foundation, Zumrotin K. Susilo, said that in
forming the new fares the government should make sure that the
public can afford them.

"The government should consider the current minimum wages
because the majority of public transportation users is low class
people," she said.

She added that the increase in the fares should be based on
the minimum wages.

Zumrotin said the public transportation companies are obliged
to improve their services by providing the passengers with secure
and pleasant transportation.

"These are consumers' basic needs and the companies should be
providing them whether the fares are increased or not," she
said.(yns/10)

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