Indonesian Political, Business & Finance News

Organda's funny math

Organda's funny math

From Warta Kota

It is not right for The Organization of Land Transportation Owners (Organda) to plan an increase in public transportation fares because of the recent fuel price hike as fuel determines only 10 percent of the fare calculation. I don't know how Organda can come up with a 40 percent hike in its calculation.

If Organda wants to increase the fares, the reason is usually a rise in the prices of (imported) spare parts. Yet, the value of the U.S. dollar against the rupiah is now weakening so that there is no reason for Organda to raise the fares.

Fuel prices naturally fluctuate. If fuel prices were to go down by, say 10 percent, would Organda also decide a similar decrease in public transportation fares? Of course, they won't! Moreover, Organda is merely an organization supervising public transportation operators and has no right to increase or decrease the fares. Otherwise, it must be classified as an illegal cartel, a group of businesses in one sector that artificially control prices, but which is forbidden in this country.

In this regard, public transportation operators intending to increase their fares must also inspect whether all of their drivers have proper driver's licenses and know how to drive well, effectively and efficiently.

FIRMAN SUMABRATA

Jakarta

View JSON | Print