PPD, Damri to get 1,550 new buses from China

JAKARTA (JP): State-owned bus companies Perum Damri and PPD will get 1,550 new buses from China, following the signing of a transportation agreement between the two governments here on Tuesday.

Based on the agreement, signed by Minister of Communication Agum Gumelar and his counterpart Huang Zhengdong, Indonesia will also purchase around 10,000 to 12,000 cargo containers from China.

Speaking after the signing, Agum said that 550 buses out of the 1,550 buses would be handed over to PPD, which provides bus transportation services in the capital.

The remaining 1,050 buses would go to Damri, that serves bus inter-city routes.

"Perum PPD will also cooperate (with the Chinese bus manufacturers) in the establishment of an assembling plant and workshop for the maintenance of those imported buses," Agum was quoted by Antara as saying.

Agum, recently appointed as coordinating minister for political, social and security affairs, has yet to transfer his portfolio as communication minister to his successor, Budi Mulyawan Suyitno.

The city administration had earlier planned to import buses from China at prices ranging from Rp 160 million to Rp 250 million each, excluding 60 percent import tax. The buses would then be sold to bus operators in the city.

The administration demanded the lowering of the import tax because it would be difficult for local bus companies to buy the buses.

The central government announced that it could lower the tax to 20 percent if the buses could be assembled by local companies. But many doubted local companies would be able to assemble them.

The administration then canceled the plan to import the Chinese buses earlier this year, and turned to local conglomerate Texmaco, which claimed to have the capability to manufacture the buses.

But again, the administration was compelled again to halt the plan to buy buses from Texmaco as the company was facing financial problems to manufacture the buses.

Late last month, the city administration revived its plan to buy buses from Texmaco by seeking loans to be channeled to the conglomerate to manufacture the buses for the city.