Organda allowed to import used buses

Organda allowed to import used buses

Sari P. Setiogi, The Jakarta Post, Jakarta

The Organization of Land Transportation Owners (Organda) will
be allowed to buy imported second-hand buses from Japan and
Australia at reduced prices in a deal with the government to
cancel a planned bus fare hike.

"These low-priced buses are to be provided to replace the bus
owners' plan to increase bus fares due to the increased fuel
prices early this year," chairman of Organda Dadan Irawan
Sarpingi told The Jakarta Post on Tuesday.

According to Dadan, the import plan is one of the concessions
being offered by the government to Organda if it cancels its plan
to raise bus fares. They will also get tax breaks.

"The cutting of value-added tax and import duties on imported
buses are among the others," he said.

Dadan said that the issue was now being discussed in the
Ministry of Finance.

He also explained that the imported buses would be mostly
allocated for Jakarta and operated as non-air-conditioned economy
buses with a fare of Rp 900 per person.

Dadan said that there would be a total of 3,000 second-hand
buses priced between Rp 115 million and Rp 120 million. Most of
these air-conditioned buses have been in operation for 10 years
on average.

He expected that the revenue received from the operation of
those imported buses, would enable the organization to buy brand
new buses in the future.

At the moment, the bus fare for regular buses in Jakarta is Rp
900 per passenger. The last bus fare hike was in May 2002 when
the fare was increased by 28.5 percent from Rp 700 to Rp 900.

Dadan also mentioned that most of the public transportation
buses in the city had been in operation for between 17 and 25
years.

"There are about 3,900 buses operating in the city at the
moment, while actually only 20 percent of them are roadworthy,"
he said, "Actually, Jakarta needs 6,000 buses, out of 12,000
required for the whole country."

Dadan also said that Organda expected the government would
soon cancel the value-added tax and import duties on imported
buses as previously promised.