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)