No ban on new taxi firms

JAKARTA (JP): Private public transport organization Organda challenged yesterday a city official's statement which said no new taxi companies could operate in Jakarta because the market was saturated.

Organda chairman Aip Syarifuddin said the only thing the city administration decided was that the number of taxis operating in 1996 could not exceed 20,000.

"If the number of taxis in the city has not reached 20,000, new companies can still start up," Aib said.

He was responding to a statement made by the head of the local Economic Development Bureau, Harri Sandjojo.

Harri said last week the city administration would not issue new permits for taxi business to avoid oversupply.

Data from the local Investment Coordinating Board show the city administration has given licenses to 30 companies to operate taxis in Jakarta since 1972. PT Cendrawasih got a a license last month.

The data shows 12 companies have not started operating since obtaining their permits, and a few others have not operated as many taxis as proposed, leaving permits for over 2,000 taxis.

City councilor Bandjar Marpaung, from the Golkar faction, blamed government officials for failing to check the taxi companies' credibility before issuing the permits.

"Many licenses are given on the basis of favoritism and not on professional grounds," Bandjar said.

Marpaung said several taxi company owners were former officials who could easily get permits because of their relationship with the authorities.

He suggested the 2,000 unused permits be given to companies that will readily operate taxis and comply with government regulations. (02)