Organda apologizes for taxi fare 'misunderstanding'

JAKARTA (JP): The Organization of Land Transportation Owners (Organda) chairman Aip Sjarifuddin apologized on Wednesday over a letter it issued demanding all taxi companies apply a new higher tariff.

"We apologize for the misunderstanding," Aip told reporters after he and other Organda's executives were summoned by Governor Sutiyoso to clarify the matter.

"We (now) consider the letter does not exist."

Organda's letter dated March 29, threatened sanctions on taxi companies who refuse to apply the new tariff which has a flag fall of Rp 3,000.

The letter claimed that the instructions were based on the organization's meeting in which a majority of the taxi firms agreed to the new tariff.

He admitted that two companies, Kosti Jaya and Citra taxi, refused to apply the new tariff.

"We respect their right to continue using the old tariff," he said.

Sutiyoso insisted on Tuesday that his administration would let taxi firms decide for themselves whether to apply the new tariff or the old tariff which has a flag fall of Rp 2,000.

"We'll leave the matter to the market. It depends on the taxi firms whether they apply the new tariff or the old one," he remarked.

Aip said on Wednesday that his organization only meant to appeal to taxi firms to apply the new tariff since it was needed to help modernize taxi fleets.

"It would be impossible to rejuvenate the cabs if they apply the old tariff. We just want to improve services," he claimed.

However many believe that a group of taxi firms who have applied the new tariff was the catalyst behind Organda's move.

Gubernatorial Decree No. 2503/2000 permits taxi companies to raise the flag fall to Rp 3,000 and increase the per kilometer charge from Rp 900 per kilometer to Rp 1,300.

The waiting fee was also increased from Rp 10,000 to Rp 13,000 per hour.

But taxi companies are split over applying the new fare.

Several taxi firms including Blue Bird Group immediately applied the new fares in September while other firms such as Kosti Jaya, Steady Safe, Prestasi, Sri Medali and Queen are still using the old rate. (jun)