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)