PPD: A perennial headache

Public transportation in the capital has been a problem for decades and, unfortunately, no solution has yet been found by those responsible.

One of the major problems haunting the streets of Jakarta is the notorious service of the mismanaged public transportation company Perusahaan Pengangkutan Djakarta (PPD), which is jointly controlled by the Ministry of Transportation and the Office of the State Minister for State Enterprises.

Both ministries seem to be overwhelmed by the unresolved problems they themselves have created with their lack of professionalism. Workers' strikes over salaries are commonplace, damaged buses have not been replaced and the problem of cannibalizing buses has never been effectively dealt with by the ministries.

What, then, have these two ministries done for PPD, which is supposed to provide Jakarta residents with cheap transportation? There are many ground transportation services in Indonesia managed by either private companies or individuals, that have not just survived, but have also managed to reap profits that have enabled them to expand their businesses. Why, then, does PPD, which owns about 450 buses, fail?

During a recently held demonstration, PPD bus drivers suggested that the company be dissolved because the management had not been able to effectively eradicate corruption in the company. Alleging that corruption was rife among those at the managerial and operational levels, the drivers warned that all efforts to save PPD from total collapse would not only be useless, but would also inflict huge financial losses to the state.

The drivers expressed their worry that the Rp 250 billion the government is expected to inject to cure the company of its ills, would only go to the management and stop there, without any clear account relayed to either their employees or the public.

Given the chaotic management, the drivers' suggestion that PPD be disbanded is, on the one hand understandable, but questionable on the other, as dissolving the company is certain to create a serious new problem: unemployment. The company has about 5,000 employees who are unhappy with their average monthly salary of Rp 300,000.

Amid this climate of frustration among both employees and the management, the Jakarta city administration was offered the option of taking over the debt-ridden company. Ferdinand Nainggolan, the assistant to the state minister for state enterprise in charge of logistics and tourism, only recently discussed with Governor Sutiyoso the possibility of selling PPD, which is burdened by massive debts.

Sutiyoso hinted that it was "not impossible" that Jakarta would purchase PPD, but only on the condition that the company's internal problems are first resolved. The gesture, anyway, sheds a ray of hope that PPD might still be saved.

Unfortunately, however, some parties doubt that the city administration's hint was motivated by the noble intention of helping the public by providing better transportation services. This doubt is not entirely baseless, because the administration's track record in managing its companies is not really impressive. The very fact that many of the city's assets have been sold to private firms could be cited as an indication that the administration's capability in managing profit-oriented companies is questionable.

Furthermore, as the city administration is currently seeking more money to fund its development projects, many people also suspect that the administration is merely lured by PPD's assets -- assets that could later be resold to private companies.

PPD controls 712,242 square meters of land in various locations in the city, where its depots, offices and villas currently stand. The total value of this collective property is estimated to be more than Rp 360 billion.

Nevertheless, it must be admitted that PPD has played a very significant role in providing people with transportation, although over the years its problems have become chronic. Improperly managed, PPD is at this junction widely seen to reflect the poor handling of transportation in the capital by the administration, which has so far responded -- ineffectively -- to the problem, mainly by constructing new roads.

If PPD is taken over by the city administration, we hope that Governor Sutiyoso will be extra careful in having the company "overhauled". A new and comprehensive program to revive the company must be outlined in a transparent and professional manner.

Only in managing PPD professionally, will the city administration be able to provide the public with better and more humane public transportation services, which, after all, is a citizen's basic right.