PPD told to seek private sponsors

JAKARTA (JP): A senior official at the Ministry of Transportation and Telecommunications suggested on Tuesday that state-owned city bus company PPD cooperate with private counterparts in a bid to survive.

Head of Traffic and Land Transportation Facilities Iskandar Abu Bakar told Antara that through a cooperative arrangement PPD could lease its operating license to any firm which could provide buses.

Iskandar said such a breakthrough was worth trying now that the government has stopped its annual subsidy while PPD was falling short of funds to maintain its aging fleet.

He said PPD could also sell some of its assets as it would need cash for downpayment of new air-conditioned buses which are expected to boost its revenue when they operate.

Plagued with mismanagement and continuing deficit, PPD is now operating 454 buses which ply 67 routes across the capital.

In a last-ditch attempt to survive, the company has started a gradual series of layoffs that could affect half of its current 5,000 employees, increased the daily bus rental fee and considered selling two of its properties in Kalideres and Jelambar, both in West Jakarta. (amd)