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)