Indonesian Political, Business & Finance News

Minibus drivers stage protest for credit disbursement

| Source: JP

Minibus drivers stage protest for credit disbursement

JAKARTA (JP): After going on strike and staging a rally for
several hours on Tuesday morning, about 100 owners and drivers of
Kopaja minibuses received an official guarantee of the immediate
disbursement of the government's cheap credit facilities.

The pledge came from the director general of land
transportation of the Ministry of Communications, Santo Budiono,
during a meeting with Kopaja's chief of operational affairs
Syarifuddin.

Santo said a portion of the loan provision of Rp 94.1 billion
(US$12.5 million) for transportation companies nationwide would
be distributed to the owners of the 7,700 operational buses and
minivans in the city by Dec. 12 at the latest.

It will allocate Rp 25 million for each of the 2,300 wide-
bodied buses and Rp 6.5 million for each of the 5,400 minibuses
and minivans, including Kopaja vehicles, Santo said.

Separately, Syarifuddin said the government would also offer
six new tires at reduced prices to each of the 960 Kopaja
minibuses operational in the capital.

Informed their demands had been met, the Kopaja operators and
drivers cheerfully left Santo's office in their 80 minibuses.

"Hurrah, we can now roar on the street again," a gleeful
driver said.

The group earlier held a peaceful rally at the National
Monument park, near the Ministry of Communications office on Jl.
Medan Merdeka Barat, Central Jakarta.

After leaving the site, some of the green-and-white minibuses
started to serve commuters again.

Absence of the 30-seat minibuses in the morning hours forced
many regular passengers to use alternative transportation.

According to the vehicle owners and drivers, skyrocketing
prices of imported spare parts and the prohibition against
increasing fares have led to many vehicles staying off the
streets.

In October, the government announced cheap credit facilities
for bus companies in 15 major cities. Interest on loans disbursed
through the fund will be set at 6 percent.

Coordinating Minister for Economy, Finance and Industry
Ginandjar Kartasasmita said transportation companies deserved the
cheap credit facility because they were prevented by government
regulations from raising their fares in response to the soaring
price of the spare parts.

Prices of spare parts have reportedly increased by up to 300
percent during the economic crisis.

After waiting for the realization for months, the owners and
drivers decided to go on strike and staged the protest on
Tuesday, forcing the government to make good on its promise.

"We could no longer run our vehicles", "The credit facility is
only a promise", "We can't operate because we cannot afford to
buy wheels/spare parts" some of their banners read.

"We can only operate 60 percent of our 1,600-strong minibus
fleet. And all of the operating minibuses are already staggering
on the streets like grandfathers," said Kopaja executive Moh.
Rapipinem.

Should the government fail to financially support the company,
Kopaja would soon declare bankruptcy, he said.

Each unit currently collects about Rp 3.12 million per month.

The amount, Rapipinem added, "is not enough to purchase six
tires that cost Rp 3.6 million".

He said minibus tires should be replaced every two months.

Some of the drivers hoped Tuesday's action would not be
repeated because of the effect on their earnings.

"I hope the strike won't last long. The minivan owners had
told us that we won't have to pay the rental fees. But they did
not give us money to buy food, we have to use our own," said
Ujang Dahlan, a driver of a minibus plying the Lebak Bulus-Kota
route. (ivy)

View JSON | Print