Indonesian Political, Business & Finance News

Proposed fares for three-tiered system queried

| Source: JP

Proposed fares for three-tiered system queried

JAKARTA (JP): The Indonesian Consumers Foundation (YLKI) is
opposed to the proposed fares and toll for the railway and
tollway announced by the company which will construct a three-
level transit system from Bintaro, South Jakarta, to Kota
downtown.

The foundation vice chairman, Agus Pambagio, said yesterday
the fare and toll proposals could be reviewed.

"Judging from the proposals, Rp 1,800 (74 U.S. cents) for the
light rail transit and between Rp 6,500 and Rp 10,000 for the
tollway, the facilities would be expensive for users. The
government could make the fare and toll smaller by helping the
company with land appropriation funds," Agus said.

Agus said the foundation was concerned more about the light
rail transit fare as most of the passengers were expected to be
of the middle-to-lower class group.

The fare for an AC express bus is also Rp 1,800 per passenger
per trip.

"Land appropriation becomes more costly due to the involvement
of mediators, including government officials and speculators,"
Agus told The Jakarta Post.

The project owner does not usually not meet with property
owners and negotiate compensation directly, he said.

"The company wants the money spent on land appropriation back
quickly by setting high fares," he said.

PT Citramoda Margakencana Persada, the company which is to
construct the Rp 6.05 trillion ($2.49 billion) three-tier transit
system was set up Monday.

The system, comprising a toll road, a railway and artery
roads, will stretch from Bintaro in South Jakarta to downtown
Kota. The project is scheduled to start in December and to be
completed within four years.

Of the total investment, Rp 3.85 trillion was for the
project's construction, Rp 615.7 billion to secure land, and Rp
1.588 trillion to pay loan interest.

Eighty percent of the company's shares belong to PT Citra
Lamtoro Gung Persada, which is headed by President Soeharto's
eldest daughter Siti Hardiyanti Rukmana. Ten percent belongs to
state-owned railway company Perumka and the remaining 10 percent
belongs to state-owned highway corporation PT Jasa Marga.

Most private car owners and public transportation users also
have complained about the planned high fares and toll.

A bus driver, who declined to be identified, said he just
learned about the project from a newspaper yesterday.

"I think buses and other public transport owners will refuse
to pay such a high toll. The rental we have to pay to the bus
owner everyday is not cheap," said the driver, who operates a bus
plying Kampung Rambutan-Kota route.

Extra

He said that drivers and bus owners might charge their
passengers extra. "If that happened, I think the passengers would
protest," he said.

An employee of a private company on Jl. Jend. Sudirman,
Central Jakarta, also expressed an objection. "Besides the fares
and toll being too high, I'm not sure that the project will
reduce traffic problems," Ria said.

She said the public would not object to paying the price if
the project reduced traffic jams. "But, if traffic problems
linger, the project would just be a waste," Ria said.

She also lamented the plan to build the railway, "It would not
be far too different from the current commuter train."

Megi, an employee from the Ministry of Finance, said she would
prefer to use the railway than the toll road because it would be
much cheaper. She also said she expected the train would be
comfortable and clean.

Under the plan, the company will build 23.65 kilometers of
toll road and 22 kilometers of railway between Bintaro and Kota,
passing through Kebayoran Lama and Blok M.

The city also intends to construct a $1.5 billion subway. The
14.5 kilometer mass rapid transit system will connect Blok M in
South Jakarta and downtown Kota.

Today, Bambang Trihatmodjo, one of President Soeharto's sons,
is scheduled to sign a memorandum of understanding on the subway
project. (ste/12)

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