Organda insists on raising fares for public transit

Organda insists on raising fares for public transit

JAKARTA (JP): The Jakarta Chapter of Public Transport Owners'
Organization (Organda DKI) has insisted on its proposal for an
increase in the fares of public transit vehicles despite the
government's strong objection towards the proposal.

"We will keep demanding for an increase," Aip Sjarifuddin, the
Organda DKI's chairman, told The Jakarta Post yesterday after a
hearing with the City Council's Commission D on development.

Aip added that Governor Surjadi Soedirdja had actually agreed
to his proposal, which was overruled by Minister of
Transportation Haryanto Dhanutirto who had stated there would be
no increase in the fares of public transit vehicles in Jakarta
this year.

Haryanto had intervened in the case because as Minister of
Transportation he is the patron for any traffic and road
transportation affairs in the country.

Aip was referring to the July 11 proposal to the governor's
office by Organda DKI for a 23 to 120-percent increase in the
fares of public transportation.

According to Aip the proposed increase includes taxis, city
buses and inter-city buses. Because the fares of the three are
fixed by the government it must obtain the government's approval
before the organization can raise them.

The proposal does not propose an increase in the fares of
cargo trucks, tankers or 12-seat minibuses, such as Mikrolet, KWK
and Komilet, because their fares are determined by the market
forces.

Aip said that Organda actually wishes that the government
would allow the decision on fares of taxis and the buses to be
based on consensus between the public and operators of
transportation.

"But we understand it is highly impossible as it involves the
interests of the public," said Aip, adding that hence demanding
for subsidies such as tax exemption and other discount facilities
from the government sounds more reasonable.

Dispensatory measures

Purnomo Prawiro, an executive director of Organda who
accompanied Aip during the hearing, also stressed that tax
exemption and other provisional measures, such as special
discounts for obtaining plate numbers, transfer of ownership
documents and roadworthiness tests would help.

Purnomo, who is also operation director of Blue Bird taxi
company, said the 10 percent fee for the transfer of ownership
documents for taxis, for instance, was often over charged and
higher than other type of cars used for public vehicles, such as
minibuses and wide-bodied buses.

"In practice we must pay double the standard fees, " Purnomo
said.

Purnomo also said that an increase in fares is unavoidable as
fuel prices have been increased twice since the public transport
fares were last increased in 1991.

Izak A. Rumaedi, Organda's chairman for the taxi division,
also said that if the government finally approves the proposed
increase, the fare hike is, in most cases, not in proportion with
the mounting expenses Organda's members had to bear due to an
increase in fuel prices and spare parts.

Another financial problem faced by Organda's members, Aip
said, was that 80 percent of them purchased their vehicles by
borrowing money from leasing companies which usually charged them
higher interest rates than banks.

Most of Organda's members are individuals who operate their
vehicles as public transport and banks won't extend loans to them
because they usually cannot meet banks' requirements.(arf)