Public bus fares to increase

Public bus fares to increase

Ahmad Junaidi, The Jakarta Post, Jakarta

The City Land Transportation Owners Association (Organda) says it
will propose increasing bus fares due to the fuel price rises.

"We will discuss increasing fares and will submit the proposal
to the governor soon," Organda chief Aip Syaifuddin told
reporters after meeting with City Transportation Agency
officials.

Aip said it was seeking the increase mainly because of the
increase of automotive diesel fuel, used by almost all public
buses.

He said the last bus fare increase of about 14 percent in May
last year was set when automotive diesel fuel cost Rp 1,250 per
liter.

"We did not increase the fares when the government increased
the fuel price from Rp 1,250 to Rp 1,550 in August last year,"
Aip said.

He said the fare increase was needed to avoid more bus
companies going broke and to support the maintenance of the
current, elderly fleet of 9,000 buses.

The central government decided on Thursday to raise the cost
of automotive diesel to Rp 1,890 per liter from Rp 1,550, and
premium gasoline to Rp 1,810 per liter from Rp 1,750.

However, during Friday's meeting, the City Transportation
Agency and Organda agreed not to increase the fares without the
city administration's approval.

"We will revoke the bus operators' permits if they are found
to have arbitrarily increased fares," agency head Rustam Effendy
told reporters.

The meeting was also attended by Kopaja bus cooperative
chairman Putu Wirta Antara, Mayasari bus company owner Mahfudz
and Metromini bus company director Thomas Silaen.

On Friday, bus fares in several routes in the city remained
the same.

A driver for Perisai Bangsa Taxis said he did not know if taxi
tariffs would be increased. Most taxis use premium gasoline.

According to procedure, Organda will submit its proposal to
the governor, who would then hand the proposal to the City
Council. The later will later discuss the proposal with the
transportation agency and the Indonesian Consumers Foundation
(YLKI) before it is again placed before the governor.

Separately, City Governor Sutiyoso rejected suggestions the
administration subsidize public transportation with the city's
emergency funds which currently total Rp 500 billion.

"It has been decided that our emergency funds should be used
for natural disasters or helping people eat," Sutiyoso told
reporters at City Hall on Friday.

He said the administration would use the funds if staple food
prices skyrocketed out of the reach of the people due to the fuel
price hikes.

The City Economic Affairs Office predicted on Thursday that
the prices of staple foods, such as rice, vegetable oil, beef,
chili and onions, would increase by at least five percent due to
the increases.

The food price increases was attributed mainly to the costs of
delivery.

The central government also increased electricity tariffs and
telephone rates.