PPD's refurbished double decker buses launched

PPD's refurbished double decker buses launched

JAKARTA (JP): PT Senawangi Wisamarta Utama (SWU), a subsidiary
of Humpuss Group, has launched refurbished double-decker buses,
owned by the PPD state-run transit firm.

Ongky P. Sumarno, SWU's president, said yesterday that the
operation of the refurbished buses by his company is aimed at
providing the convenient transportation needed by Jakarta's
citizens.

SWU has refurbished 35 of PPD's buses and will now on operate
them under an eight-year agreement the two companies concluded in
1992. The refurbishment of another 35 buses is still underway.

Supporting Ongky's statement, Yahya Subandi, PPD's president,
said he had accepted the cooperation proposal from Humpuss Group
because it was profitable.

"It will enable PPD to gain some advantage out of its worn out
assets," he said.

Yahya said earlier that PPD would gain a lot of benefit from
the cooperation, including job opportunities for its crews and a
share in any profit.

Ongky said the company had committed itself to refurbishing 70
of the existing 150 out-of-order double-decker buses. He added
that the remaining 35 will be ready around August.

The buses have been repaired in PPD's workshop at Narogong,
Bekasi.

The refurbishment cost for each bus reached Rp 100 million
(US$46,274), while the price of a new British-made double-decker
bus from the Leyland company is $161,962 (Rp 350 million) each.

"It is much cheaper than buying new ones," he said.

The company decided 15 buses will serve the Pulo Gadung-Blok M
route and 12 buses will serve the Dr. Wahidin-Blok M route.

The bus fare is the same as that of other Patas express buses
at Rp 550. The buses also will be operated without conductors as
all now have fare boxes.

The cooperation between SWU and PPD, which started in 1992,
will last until the year 2000. During the period, SWU is obliged
to pay a royalty to PPD. However, neither Ongky nor Yahya would
state a figure.

Ongky said that SWU does not expect any profit from the ticket
sales but expected to gain income from advertisements on the
buses' bodies.

Didit M.P. Pontjowinoto, SWU's finance director, told The
Jakarta Post that the advertisements will be the main source of
the company's revenues.

Didit declined to reveal the rate for advertisements painted
on the buses's body, but he said that the company had projected
that it will reach a break-even point after three years.

According to him, the Bentoel clove cigarette company has
placed advertisements on 25 of the SWU buses.

SWU has recruited 137 personnel, including 50 drivers from
PPD.

Didit said the pay of the new personnel will be adjusted in
line with the previous remuneration system applied by PPD, but he
pledged to raise their basic salary, which ranged between Rp
100,000 ($46.27) and Rp 150,000 ($69.41) by 25 percent.

"They will also receive their daily allowances of Rp 1,750 per
hour", he said.

He added that the average driver worked 210 hours a month.

Hutomo Mandala Putra, chairman of Humpuss Group, attended the
launching ceremony. (03)