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

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