Indonesian Political, Business & Finance News

New bus fares yet to be decided as debates continue

| Source: JP

New bus fares yet to be decided as debates continue

Ahmad Junaidi, The Jakarta Post, Jakarta

Jakarta councillors became involved in a heated debate on
Thursday with the city chapter of the Organization of Land
Transportation Owners (Organda) over its proposal to increase bus
fares by nearly 50 percent.

Complaining about the poor service provided by bus companies,
Councillor Sjamsidar Siregar of the National Mandate Party (PAN)
said that Organda should be liquidated for only demanding fare
increases without improving its services.

"It's better that Organda be liquidated, if its existence is
only to demand fare increases without asking its members to
improve services," said Sjamsidar, who is a member of the
council's Commission C for budgetary affairs.

She rejected an Organda proposal for fare increases and would
approve another proposal from the Indonesian Consumers Foundation
(YLKI), which said an increase of 20 percent was more realistic.

Another councillor, Jannes Pardosi of the Indonesian
Democratic Party of Struggle (PDI Perjuangan), said the city
council was being forced to approve the fare increase plan.

"It's like we are being 'robbed'. We still don't know how the
fare increase will improve services," Pardosi said.

The hearing, led by council deputy chairman M. Suwardi, was
also attended by executives from YLKI and the City Transportation
Agency.

Councillor M. Nazamuddin from PAN raised questions about the
prices of spare parts, which were among the main reasons given
for the proposed fare increases by Organda.

He said that the spare parts' prices were too high and did not
reflect reality.

"How can we use prices of new tires although we know that they
use old tires," Nazamuddin said in the hearing.

He questioned the fare increase proposal of an average 36
percent from the city transportation agency, although the recent
fuel price rise was around 14 percent.

The heated debate occurred in the hearing after Jakarta
Organda's chairman Aip Syaifudin asked the council to approve the
fare increase soon.

"We hope the councillors could approve the increase soon since
our members can no longer wait for it," Aip said.

He said earlier that Organda would increase the fares
unilaterally if there was no final decision from the council and
administration by Saturday.

Aip said he regretted Sjamsidar's comments that Organda be
liquidated, saying that the organization should be improved not
closed.

Organda's other executive Putu Wirta Antara, also the chairman
of the Jakarta Bus Cooperative (Kopaja), said the councillors had
no knowledge on land transportation.

"The councillors should be more rational. Why should we use
old tires," an emotional Putu told the hearing.

He said the current fares did not even cover operational
costs, causing the bus operators to lower standards.

Organda was often criticized for acting as a "cartel", which
determined fare increases and often threatened strikes if its
demands were not met.

The organization also played an important role in raising the
taxi's flag fall from Rp 2,000 to Rp 3,000 last year, despite
criticism from analysts who said there was no reason for the
increase.

Based on Organda's demand, the city administration raised bus
fares in July last year with a promise that the bus operators
would improve their services. The services did not improve.

Thursday's hearing also discussed the fare increase proposal
from Governor Sutiyoso, who said that 36 percent increase would
be reasonable.

The city council's factions' leaders would hold a meeting to
decide the issue on Friday.

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