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)