Medan minivan drivers protest against illegal levies

Medan minivan drivers protest against illegal levies

Apriadi Gunawan, The Jakarta Post, Medan

Hundreds of drivers and owners of public minivans remained in
their offices in Medan on Tuesday, some even choosing not to work
temporarily despite their absence from the road on the previous
day, when they gathered before the North Sumatra governor's
office to launch a protest against unfair levies.

Affiliated with the Public Transport Drivers and Operators
Association (Kesper AU), they were calling for a reduction in the
motor vehicle tax (PKB), as well as complaining about extortion
by local gangs and illegal corporate levies.

Kesper AU chairman Manahan Hutagalung told The Jakarta Post
that, so far, public minivan (angkot) operators and drivers in
the city had been subjected to a 0.9 percent PKB rate based on
the motor vehicle price. It was later discovered that the rate,
effective as of the date of the latest fare increase several
months back, was not being applied in practice.

Although a regional by-law dictates that the tax rate should
be set at 1.5 percent, and despite the provincial
administration's decision to put it at 0.9 percent to lessen the
tax burden, "in practice angkot drivers and owners have to pay
PKB at a rate far higher than 0.9 percent. Since February 2000,
the tax has increased by 60 to 70 percent," said Manahan.

Based on the present rate, they are required to pay around Rp
120,000 a year, but in reality they are charged Rp 190,000 a
year, for the lowest motor vehicle price and cylinder capacity.
If the car is the latest model, they must spend Rp 1 million in
PKB a year.

According to him, the high tax is not proportional to the
income of drivers, let alone the illegal levies imposed by
certain companies and gangs.

Corporate levies on drivers in the form of contributions are
fixed on the basis of 25 days a month, ranging from Rp6,000 to Rp
20,000. "They must pay contributions though they have more days
off," he remarked.

In addition, criminal gangs charge Rp 2,000 per driver daily,
placing further strain on the angkot drivers' meager income. With
their gross income of only Rp 25,000-30,000 daily, some of them
hire minivans at the daily rental fee of between Rp 70,000 and Rp
80,000.

He admitted that most angkot drivers frequently forced 12-14
passengers into their vans even though the legal capacity of an
Espass Daihatsu van was only eight.

"This is a mistake and may endanger passengers, but they have
to earn some money to survive. They do that just to make ends
meet," argued Manahan.

In response to the protest, the North Sumatra regional
administration plans to hold another meeting on Thursday to deal
with the problem, by also inviting relevant agencies like the
highway transport agency, the traffic police, the transport
insurance company and the regional revenue office.

"Unless the regional government responds to our complaints,
more drivers will be launching a total strike," the Kesper AU
chairman said.