Organda proposes taxi fare increase of 90 percent

The Jakarta Post, Jakarta

The Jakarta chapter of the Organization of Land Transportation Owners (Organda) has submitted a proposal for a 90 percent increase in taxi fares.

"Organda submitted the proposal in March, but we have yet to decide whether we will approve it or not. Relevant agencies are still discussing it," head of the city economic agency Sukri Bey said on Monday at City Hall.

The proposed hike would mean a flagfall of Rp 5,700 (63 U.S. cents); the current rate is Rp 3,000.

"Organda has also proposed an increase in the incremental charge to Rp 1,800 per kilometer, or by 50 percent, from the current Rp 12,000," Sukri said.

In addition, it also asked the administration to raise the waiting fee to a minimum Rp 18,000 per hour, from Rp 12,000 per hour.

Sukri did not elaborate upon the reason behind the proposed increase, and said only that it was "a biennial trend".

"The flagfall increased to Rp 2,000 from Rp 1,600 between 1998 and 2000. In 2000, it increased to Rp 3,000. It has been four years now and there has been no increase," he said.

The 2000 taxi fare hike was rejected by several taxi companies, including Kosti Jaya, Steady Safe, Prestasi, Sri Medali and Queen Taxi, which insisted on keeping the old fares. Only Blue Bird Group taxis applied the new fare.

Councillor Koeswadi Soesdihardjo of City Council Commission D on transportation said any increase must be based on a logical reason, such as inflation or an increase in the price of spare parts.

"The increase should not be imposed if it is based merely on a 'trend'," he said.

He declined to comment further on the issue, as he had yet to receive and study the proposal.

Standard procedure stipulates that any proposal on increasing tariffs must be passed to the city council for approval.

Taxi drivers have repeatedly complained that fare hikes would only discourage passengers from utilizing their services and would therefore affect their daily income severely.

Sabar, an Express Taxi driver, was worried about the proposed hike.

"Even at the current rate, it's already hard for us to feed our families. I don't know how much I can earn a day if the rate is raised," he said, adding that the greater number of taxis operating in the city also made competition among drivers fiercer.

City data in 2002 showed there were 40 taxi companies operating in the capital, with a combined fleet of around 24,000 taxis.