Official vows help in cheap credit bid

Official vows help in cheap credit bid

JAKARTA (JP): Deputy Governor for Economic and Development
Affairs Budiardjo Soekmadi pledged on Wednesday to help minivan
operators qualify for cheap credit worth Rp 94.1 billion
(US$11.76 million) provided by the government for the
transportation sector.

Budiardjo said the administration would ask the government to
change its policy of restricting awarding of the credit to medium
and wide-bodied bus operators in 15 major cities, including the
capital.

"I think the government should change the policy as minivan
operators should also get part of the credit so as to enable them
to continue operating."

Meanwhile, 13 minivan operators protested the policy on
Wednesday at the Ministry of Communications. They met the
director general for land transportation, Santo Budiono.

Santo said the policy to prioritize medium and wide-bodied
buses for receiving credit was made because minivan operators
received higher income. Minivan fares are negotiated between
operators and passengers according to the distance covered, while
bus fares are set by the administration.

"We have also considered that the number of wide-bodied buses
which are still plying the streets has dropped to only 30 percent
of the total fleet as compared to the number of minivans, which
remains at 70 percent."

Protesters included members of Wahana Kalpika Cooperatives
(KWK), Komilet Jaya, Kopamilet Jaya, Purimas Jaya and Kojang
Jaya.

KWK head La Ode Djeni Hasmar had said previously that only
half of the 34,000-strong minivan fleet was operational because
of the high cost of spare parts.

Santo said Rp 56.3 billion of the total fund was earmarked for
Jakarta "as the number of the city fleet is much bigger than
those in other areas".

Other cities entitled to the credit include Medan in North
Sumatra, Semarang in Central Java and Surabaya in East Java.
Interest is set at 6 percent.

However, Santo said that he would consider the minivan
operators' demand for fair treatment.

"Please send a formal letter about the detail of the minivan's
operational costs and the amount needed," Santo told the
operators.

Spokeswoman for the minivan operators Etty Mustam said it
would be preferential for the fund disbursement to be postponed
until their complaint was settled.

"It's for the sake of justice. If the government continues
with the policy, we will stage a strike then."

Budiardjo argued that a strike would not solve the problem.

"The operators can first discuss the matter with the City Land
Transportation Agency or the city branch of the Organization of
Land Transportation Owners, for example, to seek a way out."
(ind)