Organda ready to face class action for taxi fare hike

JAKARTA (JP): The Organization of Land Transportation Owners (Organda) is ready to face a class action filed by the public over its decision to raise taxi fares by about 50 percent effective from Friday, an executive said.

Chairman of the organization's Jakarta chapter taxi section Priyatmedi said on Thursday his office possessed detailed calculations that backed up the decision to raise prices.

Running taxis with the current fares will take taxi companies into bankruptcy, he told The Jakarta Post.

"Fare increases for taxis are badly needed because the current fares can not cover operating costs," Priyatmedi said.

The decision was taken by taxi companies in March last year but was postponed until now due to the economic crisis, he added.

The Indonesian Consumers Foundation (YLKI) announced on Wednesday that it was ready to help the public file a class action against the government and Organda over the hike.

Priyatmedi said the hike was based on an Organda decree which had been approved by the governor.

The decree allows companies to raise the taxi flagfall from Rp 2,000 to Rp 3,000 and the meter charge from Rp 900 per kilometer to Rp 1,300 per kilometer. Waiting fees will also be raised from Rp 10,000 to Rp 13,000.

Higher intercity bus, train, ship, and ferry fares also come into effect on Friday.

Several taxi drivers expressed unhappiness with the hike, saying it would make it harder for them to get passengers.

Blue Bird taxi driver Jarkasi said it would only benefit the owners of the company he worked for.

"(The company) has already told us it will not raise our commission despite the hike," he said.

Jarkasi said Blue Bird used a commission system were drivers are paid according to how much money they make.

Tiffany taxi driver Rosyid echoed Jarkasi's complaint.

"The fare hike means an increase in our daily rental charges we pay the company. And also, the public will think twice about jumping in a taxi," Rosyid said.

Rosyid said that his company used a fixed payment system where drivers had to pay a daily charge of Rp 105,000 to taxi owners. On average, he said, he takes home around Rp 40,000 everyday.

"If I come back to the taxi depot with less than Rp 105,000, I have to pay the deficit," Rosyid said.

"Drivers may go on a strike if the taxi companies continue with the decision," Rosyid said, adding that his employers had yet to make an official announcement about the hike.(jaw)