Plan to import buses from China still under question

Plan to import buses from China still under question

JAKARTA (JP): None of the 14 privately-owned city bus
companies here have submitted formal proposals for the planned
purchase of buses shipped from China, an executive of the company
appointed to import the buses said on Thursday.

"So far, they've only said they're willing to buy, but I still
have no idea of the number of buses to be purchased from them
(China)," said the worried president of PT. Dayu Bahtara Kurnia,
Karta Wiguna Mustapa.

His company was appointed recently by the city administration
in an open bidding to handle the shipment and transaction of a
total of 3,000 buses from China. The first batch of 1,000 buses
is expected to arrive in Jakarta sometime in December.

Despite his doubts, Karta said Dayu Bahtara Kurnia has no
intention so far to cancel the plan and was certain that the bus
companies in the capital would finally purchase the buses.

The vehicles to be imported from China are of two sizes,
namely 54-seat buses and 26-seat minibuses. The first type are
being offered at Rp 250 million (US$29,760) each, while the
minibuses will sell for Rp 160 million each.

City administration officials boasted earlier that the Chinese
buses, which run on liquefied gas, are more environmentally
friendly than Jakarta's current buses which use gasoline or
diesel.

According to the plan, each of the buses should provide at
least one seat for disabled people.

The city administration claimed that the import of the 3,000
buses was designed to replace the aging buses in Jakarta,
particularly those that have been operating continuously for the
past 10 to 20 years.

Chairman of the Jakarta chapter of the Organization of Land
Transportation Owners (Organda), Aip Sjarifuddin, said that
Jakarta currently has 2,028 buses, including minibuses, which
have been serving passengers for more than 20 years, and 1,556
others that have been roaring up and down the capital's roads for
at least 15 years.

"Based on a rough calculation, we assume that Jakarta bus
companies need around 3,500 new buses to replace the aging ones,"
Aip said.

"But we will comply with the financial capabilities of the
companies to purchase the imported buses from China," he said,
giving no further explanation.

Karta said his company would offer the buses to the bus firms
on a six-year lease from Sinar Mas Leasing Company with an 18-
percent interest rate.

"Companies that decide to purchase the buses are required to
pay 10 percent of the price as down payment," he added.

Karta further claimed that the bus factory in China would also
provide a lifetime warranty for the buses' spare parts.

"Almost 60 percent of the spareparts are already available
here, and the remaining 40 percent will be provided directly from
China. Each bus can be used for at least 20 years," Karta said.

The City Land Transportation Agency (DLLAJ) Chief Buyung Atang
said Governor Sutiyoso had approved the plan and will ask the
Ministry of Industry and Trade to help lower the import taxes for
the buses.

"We will ask the ministry to give five percent import tax for
each unit, instead of the current 40 percent, to minimize the
price of the buses," he said.

The governor also strongly urged bus companies in Jakarta not
to hike bus fares simply because of the new investment they had
to carry.

"The government will help bus companies obtain the new buses
but they also have to promise that they will not impose a fare
hike because of this," he added. (dja)