Lower import tariff asked for Chinese buses
Lower import tariff asked for Chinese buses
JAKARTA (JP): The city administration will ask that the import
tariff on buses purchased from China be reduced in order to make
the buses affordable to transportation operators.
A city official unveiled the proposal on Thursday. "Currently
the import tariff for commercial passenger vehicles is 40
percent .... We proposed to the Ministry of Finance that it
reduce (this tariff) to 10 percent.
"If the ministry approves our request, it will help bus
operators acquire the buses," Buyung Atang, the head of the City
Traffic and Land Transportation Agency, said at the City Council
building.
The administration revealed in May a Rp 1.5-trillion (US$183
million) plan to replace city buses within three years. Governor
Sutiyoso hinted on Wednesday the bus procurement would be
financed through a soft loan provided by a Chinese banking
consortium.
Buyung said private Bank Internasional Indonesia (BII) would
act as a coordinator for the Chinese consortium. "The bus
operators can apply for the loan through BII. The city
administration will not be directly involved in the scheme. We
are only facilitating the scheme.
"One thing is sure, the operators cannot ask for a fare hike
once they receive the new buses financed by the soft loan. They
must charge passengers the current fares," he said.
He also said his agency would intensify its supervision to
ensure aging buses were removed from the streets once the new
buses arrived.
On Tuesday, Governor Sutiyoso reiterated his pledge to provide
cheap and reliable public transportation for Jakartans,
especially those in the lower income brackets.
"We need 3,000 buses, which will come in three phases of 1,000
buses each. We expect the new buses can start operating as soon
as December," he said.
The new vehicles will cost Rp 250 million for regular buses
and Rp 160 million for minibuses. These new buses also are more
environmentally friendly than the old ones because they run on
liquefied gas rather than regular gasoline or diesel fuel.
Public buses in the city are known for their poor service,
high fuel emissions and dilapidated condition.
City records show some 1,420 buses have been in operation for
more than 20 years; 1,860 buses between 15 and 20 years; 4,000
buses between 10 and 15 years; 7,890 between five and 10 years;
and 7,000 buses have been on the streets for fewer than five
years. (nvn)