Organda orders Korean buses

SEOUL: The Association of Land Transportation Owners (Organda) has signed a Memorandum of Understanding with South Korean car maker Hyundai to buy public buses for 20 towns in Indonesia.

The signing was conducted on the sidelines of President Megawati Soekarnoputri's visit to Seoul on Saturday.

Organda chairman Dadan Irawan said the Rp 178 billion project would be funded by the government using the state budget allocated to compensate for the impact of fuel price hikes.

Dadan said the new buses, the number of which was undisclosed, would prevent an increase in bus fares.

The buses will be shipped to Indonesia in a knock-down format and will be assembled in Indonesia.

The first shipment, valued at Rp 75 billion, is expected to take place in the near future. -- Antara