Tue, 07 Jan 2003

Public bus fares raised arbitrarily, drivers threaten to strike

The Jakarta Post, Jakarta

Several bus drivers started to increase their fares arbitrarily on Monday following the fuel price hike, while others threatened to go on strike as the government and bus operators were still busy discussing how to handle the situation.

Mayasari Bhakti buses plying the Kampung Rambutan-Kalideres route, and Himpurna buses plying the Senen-Cimone route, for instance, charged passengers Rp 1,500 (about US 16 cents) on Monday, up from the official fare of Rp 1,200.

Meanwhile, KWK public minivans plying the Pasar Minggu- Cijantung route also raised their fares to Rp 1,300 from Rp 1,000, according to data from the City Social Disturbance Control Office (Pusdalgangsos).

No official statement has been made by either City Administration or City Council officials in regards public transportation fares in the city following the latest increase in fuel prices.

According to procedures, the fare increase should be approved by the governor after it has been discussed with City Council, the association of public transportation companies (Organda) and the Indonesian Consumers Foundation.

Public transportation drivers interviewed by The Jakarta Post on Monday said some drivers might increase their fares because of their falling income as a result of the fuel price increase.

Several Metromini bus drivers at the Blok M bus terminal, South Jakarta, and at the Kampung Rambutan bus terminal in East Jakarta, for instance, explained that their daily incomes had decreased sharply due to the hike in the price of automotive diesel fuel.

"As the diesel price increased, our daily incomes decreased by about Rp 30,000. We now receive a net daily income of Rp 35,000," said Heri, the driver of a Kampung Rambutan-Blok M regular bus.

He claimed that he used to spend Rp 80,000 for about 50 liters of diesel a day, but now he spent Rp 110,000 for the same amount of fuel.

The central government announced last week the increase of the diesel fuel price, from Rp 1,550 to Rp 1,890 per liter, while the price of premium gasoline was increased from Rp 1,750 to Rp 1,810 per liter.

Almost all of the city's 9,000 public buses use diesel fuel.

On top of fuel costs, bus drivers are normally required to pay a daily bus rental fee of around Rp 250,000 to the bus owners, and the rest of their daily revenue would be shared with their assistants.

Heri and his fellow drivers in the Rambutan and the Blok M terminals complained that their lives were only getting harder and becoming hopeless due to the increase in the costs of fuel and other goods, such as staple foods, while their incomes failed to reflect the price hikes.

They called on the city administration to raise public transportation fares; otherwise, they would joint other drivers and go on strike Thursday, as planned.

"If by Jan. 9, the fare is not raised, bus drivers will all go on strike," said Agus, the driver of a Kota-Kampung Rambutan route bus.

However, the drivers' demand for an increase in bus fares would not be met any time soon, as the Land Transportation Owners Association (Organda) decided on Monday not to propose an increase in economy bus fares.

Instead of proposing a hike in bus fares, Organda asked the government to provide funds to bus owners to replace their aging vehicles.

"We understand that the purchasing power of commuters remains low. Nevertheless, we want the government to help us by providing funds for bus owners to restore the aging vehicles, so we can serve the public better," Organda chairman Dadan Irawan Sarpingi told reporters after a meeting with government officials at the Ministry of Transportation.

According to Organda, the higher fuel prices would cut deeply into their members' profit margins by about five percent for diesel vehicles and increase operational expenses by 10 percent. This revenue loss could be covered by a fare hike to Rp 1,430 per passenger.

However, the city administration decided on Monday not to give the fuel-subsidy-reduction compensation fund this year to bus owners. The administration received Rp 2.9 billion in compensation funds from the central government last year.

"The subsidy is for poor people. We distributed the subsidy through several cooperatives here," Deputy Governor Fauzi Bowo told reporters after a meeting of the city officials at City Hall.

The meeting, which was led by Governor Sutiyoso, was attended by City Police Chief Insp. Gen. Makbul Padmanagara, Jakarta Military Commander Maj. Gen. Ahmad Yahya and City Council Deputy Chairman M. Suwardi, and discussed the current situation in regards the increase in fuel prices.