New options in bus bind explored

JAKARTA (JP): City authorities are looking into alternatives to keep bus companies solvent and improve services after the government ruled out a hike in fares this year.

Deputy Governor of Development and Economic Affairs, Tb.M. Rais said Monday the City Land Transportation Agency would study other options.

"The city understands the government is taking into account all interests," Rais said.

"The authority to raise fares lies with the government, the municipality cannot decide on this."

Agency chief J.P. Sepang proposed last Wednesday a new Rp 500 "combined" fare, which averaged the Rp 300 (12 US cents) fare of regular buses with the Rp 700 fare of the non air-conditioned express passenger buses (Patas). The latter service would be discontinued once the new fare took effect, he added.

But on Thursday Minister of Transportation Haryanto Dhanutirto said there would be no fare increase before the general assembly in March next year.

The agency had announced the plan after the municipality acknowledged that the Rp 300 bus services, which bus companies are required to operate, were too low to cover operation costs.

Aip Syarifuddin, head of the city branch of the Organization of Land Transport Owners (Organda), said on Friday that the government should provide soft loans and lower taxes if bus fares could not be raised.

Aip also said prices for vehicles for public use should be set lower than private ones.

"We have yet to discuss (the suggestions)," Rais said.

In addition to the regular and non air-conditioned Patas bus services under the government's 1996 fare structure, there is the Rp 1,800 air-conditioned Patas.

Many people have complained of poor bus services, including through the Indonesian Consumers Foundation, Rais said.

He said adding bus services would not solve the problem if the city lacked a Mass Rapid Transport system. "Thousands of buses will not solve traffic problems or improve bus services."

YLKI said earlier that there would be no need to raise bus fares if illegal levies were eliminated at bus terminals and along routes, and if bus companies improved their management. (ste)