Indonesian Political, Business & Finance News

No more minibuses on Major Jakarta roads in the future

No more minibuses on Major Jakarta roads in the future

JAKARTA (JP): Owners of city minibus companies have agreed to replace every two minibuses, crossing or operating along major thoroughfares, with one big-capacity bus.

Aip Sjarifuddin, chairman of the Organization of Land Transportation Businessmen, told reporters yesterday that the agreement was reached in a meeting between members of the organization, including the two largest minibus companies -- Metro Mini and Kopaja -- and officials of the city's economic bureau.

"The organization fully supports the replacement program, which is designed mainly to reduce the number of vehicles operating on main streets and to help solve complicated traffic problems in the city," Aip said.

"Under the replacement program, the route permits for the two minibuses will be replaced with one permit for the big-capacity bus," he said.

Aip explained that this program will not cause minibus company owners to suffer losses because the replacement buses have a bigger capacity than the minibuses' for transporting passengers.

In its first stage, the program will be implemented only on minibuses crossing the city's main roads such as Jl. Sudirman and Jl. Thamrin, he said.

Executives of Metro Mini and Kopaja told reporters that they are ready to implement the program and in the first phase each company will replace 100 minibuses with 50 big busses.

"As soon as the governor approves the program Kopaja will change 100 minibuses with 50 large busses," said Soenarto, chairman of Kopaja, whose fleet of 1,435 minivans ply 34 routes.

"First priority will be given to the replacement of all minibuses plying Ragunan-Tanah Abang with big busses," Soenarto explained.

Johanes Damanik, business development manager of Metro Mini, said that his companies will also replace 100 minibuses with 50 large buses in the first phase. The priority will be given on minibuses numbered S604, plying Tanah Abang-Pasar Minggu and S69, plying Blok M-Ciledug.

Damanik said that the company has 3,061 minibuses operating throughout the city.

Aip explained that minibuses to be replaced but still in good condition, will be transferred to serve other routes, especially on the city's outskirts. "These minibuses will be rented or sold to other interested businessmen after being repaired," he added.

The executives said they are not worried about the program as it will be applied to major roads only. Minibuses plying routes on smaller roads will not be affected, they said.

Their only concern is with the minibus companies plans to operate the new large buses under the Patas (quick, limited service) plan with tickets being more expensive than ordinary fares.

Ticket fares for a Patas bus is set at Rp 550 (25 U.S. cents), more than double the ordinary minivan prices of only Rp 250.

"We are forced to operate the big buses under Patas so as to obtain big incomes, otherwise we are unable to repay our bank loans," Damanik said.

He explained that unlike the city-owned bus company, PPD, which is subsidized by the government, private bus companies like Metro Mini, do not subsidize bus owners to buy new fleets.

Soenarto shared Damanik's view, saying that each big bus is valued at Rp 175 million and the owners will have to borrow the funds from the bank to finance its procurement.(yns)

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