New fares scares taxi passengers and drivers

New fares scares taxi passengers and drivers

Tantri Yuliandini, The Jakarta Post, Jakarta

"No way I am using a taxi! Not unless it's an emergency, it's
just way too expensive now," Tika, an employee in Palmerah, South
Jakarta, said on hearing that taxi companies had increased their
fares on Monday.

Several taxi companies in Jakarta -- including Blue Bird,
Primajasa, Ekspress, Dian, and Tiffani -- began operating with
the new increased fare in accordance with the gubernatorial
decree issued on Oct. 10.

The decree increased taxi fares by an average of 34 percent,
with Rp 5,000 (about 50 U.S. cents) flag fall and Rp 2,500 for
each kilometer, compared to the previous flag fall of Rp 4,000
and Rp 1,800 per kilometer. In addition, the hourly waiting fee
went up to Rp 25,000 from the previous Rp 18,000.

The Jakarta branch of the Organization of Land Transportation
Owners (Organda DKI) followed up the decree several days later,
but many taxi companies refrained from immediately increasing
their fares until taxi meters had been adjusted.

"We were quick to respond to the gubernatorial decree because
we wanted the operators to prepare themselves," Organda DKI
chairman Herry JC Rotty was quoted by KCM as saying.

He said that taxi companies were free to set their own fares,
but they were not permitted to be more than that stipulated by
the government.

"The stipulated fare is the maximum fare, meaning companies
are free to either stick to the old fare or use the new one,"
Herry said.

Many regular taxi passengers, such as Tika, are understandably
dismayed by the increase.

Santi, an employee of a telecommunications company in Daan
Mogot, West Jakarta, said that she would be forced to cut down
her "nights on the town" because of the taxi fare increase.

"Taxis are the single woman's comfort; I feel safer going home
at night by taxi than by bus," she said.

Blue Bird spokesman Teguh Wijayanto told The Jakarta Post that
it was normal for the number of taxi passengers to drop following
a fare increase.

"It's a transition period, usually about one or two months
under normal circumstances, after which taxi passengers become
accustomed to the new fare," he said, explaining that there was
usually a 5 percent to 15 percent drop in passengers.

This time, however, Teguh said that the company was preparing
for a drop in passengers of between 20 percent and 30 percent.

"This is the second increase this year, perhaps in total it's
the largest taxi fare increase in the country's history, so maybe
there will even be a drop of 20 to 30 percent in passengers,
maybe more," he explained.

Together with the first taxi fare increase in March, this year
taxi fares have increased 70 percent.

During such quiet periods, Teguh said, his company usually
gives out cash incentives to its drivers, but that such measures
were still too early to implement.

"We'll wait five to 15 days until we know for sure how bad the
drop off in passengers is, then we can decide on the cash
incentives," he said.

In a competitive spirit, many other taxi companies, such as
Gamya, Sepakat, Putra, and Kosti Jaya, have retained the old
fares.

"I don't think there'd be any money for us to take home if the
company raised its fares. Even now, passengers are scarce," said
Rahmat, a Kosti taxi driver.

There are 42 taxi firms running a total of 26,000 cabs in
Jakarta alone, while in Bogor, Depok, Tangerang, and Bekasi there
are 15 more companies operating 17,000 cabs, many of which also
operate in the capital.