Planned toll road tariff hike cricitized
Planned toll road tariff hike cricitized
Annastashya Emmanuelle, The Jakarta Post, Jakarta
State-owned toll road operator PT Jasa Marga's plan to
increase toll road tariffs by as much as 40 percent, in order for
the company to avoid bankruptcy, should be delayed pending
amendments of several troublesome contracts with private
contractors, the Indonesian Corruption Watch (ICW) said on
Tuesday.
The private contractors, many of whom are relatives of former
President Soeharto, are the main cause for Jasa Marga's loss, due
to its troublesome projects and mark ups, according to ICW.
"The inefficiency of Jasa Marga is caused by the inability for
the company to be independent which is related to the fact that
they are heavily influenced by very powerful people who, may not
be the best people for the business," claimed the head of the
investigation division of the ICW, Irfan Muktiono.
The comments came on the sidelines of a meeting to discuss a
tariff rise for customers using the toll roads.
The director of PT Jasa Marga, Sjarifuddin Alambai, indeed
confirmed that the company would increase tariffs, which
currently range from Rp 500 to Rp 4,000, in order for the company
to survive. The hike is scheduled to be put into effect after it
is discussed with the Peoples Consultative Assembly (MPR) in
January 2002.
The last hike of the toll road tariffs was in 1996.
According to ICW, most notable among the unfair and somewhat
suspect contracts was the one involving PT Citra Marga Nusantara
Persada (CMNP) owned by Siti Hardianti Rukmana, Soeharto's eldest
daughter. The contract is for the harbor toll road from Tomang to
Tanjung Priok, in which CMNP receives 75 percent of the toll road
revenues.
Meanwhile, CMNP has not fulfilled its responsibility as
stipulated in the original proposal and contract. For instance,
the width of the toll road was agreed to be 3.5 meters per lane
in the contract, however they only built it 3.25 meters, while
taking all the money and in effect shortchanging the public.
Citra Marga Nusantara Persada also received the toll road
revenues earlier than agreed. It received Rp 42 billion in 1990
even though it was not scheduled to do so until 1994.
The payment arrangement, which has hurt Jasa Marga's financial
condition, was formalized with the joint decree issued by the
Minister of Public Works and the Minister of Finance
No.524/KPTS/1989 and No.1216/KMK.013/1989 that was put into
effect in November 1989.
Another example of ineffectiveness that cheated taxpayers is
when Jasa Marga decided to compensate the losses incurred by the
construction group, which was awarded the contract, after it had
lost money in foreign currency exchange rates, while importing
certain materials.
The company, PT Arthayasa Karya Bina Caraka, is owned by
Rasich Hanif Radinal, son of the former Minister of Public Works,
Radinal Mochtar. The public was again made to take the brunt of
the illegal subsidy -- for the supposedly private company -- to
the tune of Rp 90.8 billion.
The director of PT Jasa Marga, Sjarifuddin Alambai,
acknowledged the loss caused by the company's fraudulent dealings
with its private contractors, but amending the profit sharing
arrangements would require the revocation of the ministerial
decrees, he said.
As for the business arrangement with CMNP, Sjarifuddin said
that they had met with a delegation from the company to re-
negotiate the terms.
"Hopefully CNMP will be able to reach an agreement with us,"
he commented.
Meanwhile, the Indonesian Consumer Foundation (YLKI)
criticized the price hike, saying that Jasa Marga has often
failed to provide adequate service to the consumer and prices
should be lowered, or, failing that, the quality must be raised
in conjunction with any hike.
"Increasing the toll road tariff ideally should be accompanied
by the increase of service and quality. Can Jasa Marga promise to
provide better service instead of just making the consumer pay
for the ineffective management of the company?" Indah
Suksmaningsih, the chairwoman of YLKI asked.