New taxi permits issued for firms willing to merge

New taxi permits issued for firms willing to merge

JAKARTA (JP): Deputy Governor for Economic and Development
Affairs TB Rais said yesterday the city administration would
issue permits for new taxi businesses, but only if it involved a
merger with an established company.

"The city administration has decided the number of taxis
operating in Jakarta in 1996 should not exceed 20,000," he said.

He made it clear the administration would still endorse
applications for new permits. "We will not reject an application
for a new permit from a firm wishing to operate its taxis in the
city as long as the company wants to merge with another firm
already established."

He believed the system would help the city administration
control taxi operations in Jakarta.

"If we continue to issue new permits without any restriction,
we are afraid we can not effectively supervise the operation of
the taxis in the capital," he said. "Too many taxis operating
would pose various problems to the city administration."

Rais was responding to complaints aired by private public
transport organization Organda chairman Aip Syarifuddin.

Last week Aip objected to a statement by the head of the city
Economic Development Bureau, Harri Sandjojo, who explicitly said
the city administration would not issue new permits for taxi
businesses to avoid oversupply.

Aip said the only thing the administration decided was the
number of taxis operating in 1996 could not exceed 20,OOO.

"So it means that if the number of taxis in the city has not
reached 20,000, new firms can still start up," he said

But Rais' explanation yesterday cleared up the matter. A
permit will be given to a new company, but when it comes to
operation the company must merge with an established company.

Data from the local Investment Coordinating Board show the
administration has given licenses to 30 companies to operate
taxis in Jakarta since 1972. The data shows 12 firms have not yet
started operating since securing their permits, and a few others
have not operated as many taxis as proposed, leaving permits for
over 2,000 taxis.

Meanwhile Judhi, the head of the Land Transport and Traffic
Agency's Business Department, said yesterday two new taxi
companies recently given permits had merged with established
firms. They are PT Cendrawasih which merged with Blue Bird and
Koperasi Pembela Tanah Air (Kopeti) which joined with Steady
Safe.

Under the system, it is Blue Bird and Steady Safe which are
responsible for operational and field matters.
(bas/02)