Organda objects to fuel coupon plan

Organda objects to fuel coupon plan

JAKARTA (JP): The government-initiated scheme to provide fuel
coupons for public transportation received a strong objection
from the Land Transportation Owners Association (Organda) on
Wednesday.

Chairman of Organda's Jakarta chapter, Aip Syarifuddin, said
the scheme would be unable to cover the vehicles' operational
costs.

"We are grateful with the fuel subsidy scheme but we have to
reject it if we can't increase our bus fares and other public
transportation fares.

"The subsidy is insignificant because it only covers about
nine percent of our operational costs," he said.

Aip was addressing a question-and-answer session of a panel
discussion on public transportation fares and subsidies at the
Ministry of Communications.

He said the larger proportion of owners' expenditures was for
spare parts and vehicle maintenance.

"We have repeatedly asked the government to reduce the import
tax on spare parts," he said, while accusing the government of
having no control over the spare parts trade.

He cited the price of Bridgestone tires for buses, which was
not lowered again after the rupiah strengthened from Rp 15,000
during the height of the economic crisis to the current rate of
Rp 7,500 to the U.S. dollar.

"It's more important to give subsidies on spare parts than on
fuel. It's not going to help much," he said.

Aip called on the importance of imposing lower interest rates
on vehicle loans.

"Once the lower loan interest rate is imposed, we'll be able
to set a lower rate," he said.

The official said regular buses would need Rp 887 (12 US
cents), minibuses Rp 1,013 and limited buses (Patas) Rp 1,409
from each passenger to cover their operational costs.

"And an additional 10 percent should be added to the amount to
establish the new fares for the buses and other public
transportation vehicles," he said.

Aip said he would meet members from the House of
Representatives (DPR) Commission VIII for environmental, science
and technology affairs on Thursday to deliver the association's
stance on the matter.

"Organda's Jakarta chapter will also hold a plenary meeting
for all members on Saturday to familiarize the association's
position on the fuel subsidy scheme," he said.

Another speaker at the panel discussion, Tini Hadad of the
Indonesian Consumers Foundation (YLKI), said the fare hike was
understandable as the government could not provide such a large
amount for a subsidy.

"Residents have to understand this," she said, while
suggesting a hike of 30 percent to 60 percent from current fares.

She suggested, however, that the government should maintain
the fuel subsidy.

"Residents are questioning the government's policy of raising
state officials' salaries, and at the same time they are revoking
or reducing the subsidy," she said.

The ministry's secretary-general, Anwar Suprijadi,
acknowledged that with current fares, it was the owners who
subsidized the passengers.

"Actually, it's the government's duty to subsidize the
passengers," Anwar told the participants.

Chairman of the House of Representatives (DPR) Commission IV
for infrastructure and transportation affairs, Sudjarwo
Sukardiman, said the fuel increase would have little effect on
the fare hike.

"It will, however, affect other sectors of people's lives,
including the drivers' welfare," he said, while pointing to the
trend that a fuel hike was always followed by hikes in other
services and commodities.

Sudjarwo, a legislator of the Indonesian Democratic Party of
Struggle (PDI Perjuangan) faction, added that his commission was
still calculating the fare hike.

Under a subsidy scheme designed by the National Development
Planning Board (Bappenas), each public transportation driver was
entitled to get 12 liters of premium gasoline or 20 liters of
diesel at the current price per coupon.

However, public transportation drivers had yet to be informed
on the coupons' mechanism.

Although the mechanism regulates the involvement of regional
traffic agencies, head of City Traffic and Land Transportation
Agency Buyung Atang said he had not been informed of the
mechanism.

"I have not received any details on coupon distribution, and
there is only nine days to go. The discussion to put the coupon
system into effect didn't involve my agency," he said over the
phone on Wednesday.

"The Ministry of Communications has yet to issue guidance on
the mechanism."

He said the mechanism should involve local authorities, such
as the city administration and the city council.

Apart from the panel discussion, some 300 student protesters,
grouped under Forum Kota (City Forum), staged a protest at a
traffic circle of Jl. Teuku Umar and Jl. Suwiryo in Central
Jakarta, which is close to former president Soeharto's residence
on Jl. Cendana. The protesters demanded that the government
cancel, among other things, the planned fuel increase, as well as
the proposed electricity and telephone fare hikes.

The students staged a similar protest earlier in front of
State Palace on Jl. Merdeka Utara. (nvn)