Mon, 13 May 2002

Public reluctantly accepts increased fares

Bambang Nurbianto The Jakarta Post Jakarta Post

As the city administration intends to increase bus fares, many lower income people say they have no choice but to accept the reality even though it will force them to further tighten their belts.

Bondan, 35, a resident of Kemayoran subdistrict in Central Jakarta, said he would have to recalculate his family budget after the government increased fuel prices two weeks ago, which forced up the prices of other basic commodities.

"A day after the fuel price increases, my wife complained that the prices of other goods had also increased. I can only listen to her complaints without being able to give her additional money," Bondan, a worker at a Pulo Gadung garment firm, told The Jakarta Post on Saturday.

"If fares increase this week, then I'll have no choice but to further tighten my family budget, which I had to do once before," he said.

Head of the city transportation agency Rustam Effendy said on Friday that his agency had agreed with the Organization of Land Transportation Owners (Organda) and the Indonesian Consumers Foundation (YLKI) to raise land transportation fares by between 25 percent and 66 percent. But it has yet to be approved by the City Council.

Fares for regular buses are set to increase from Rp 700 to Rp 1,000 (43 percent), limited seat buses and medium-sized buses from Rp 900 to Rp 1,200 (33 percent), public minivans from Rp 1,300 to Rp 1,600 (25 percent). Fares for students are expected to increase from Rp 300 to Rp 500 (66 percent).

Rustam said the fare increases were not only due to the fuel price increases, but were mainly due to the increased price of spare parts and lubricant oils several months ago.

Spare parts traders in Atrium shopping center in Central Jakarta confirmed the price increase of spare parts and lubricants. They noted that the recent fuel price hike would only slightly affect bus fares.

"Spare parts prices increased several months ago. It was because of the strengthening of the U.S. dollar against the rupiah, not because of the fuel price hike," said Aseng, a worker at Leo Jaya Mandiri spare parts shop at Atrium.

Botek, who runs the Sentra Motor Lubricants store in the same shopping center, concurred with Aseng.

As their salaries will not increase, at least in the near future, many people like Bondan will have to tighten their belts.

Bondan, whose monthly salary is Rp 1 million, has four family members to support. His two children attend elementary school in Kemayoran.

He currently spends Rp 5,000 per day or Rp 125,000 per month on public transportation from his house in Kemayoran to his office in Pulo Gadung. If bus fares increase this week he will have to spend another Rp 500 per day or Rp 25,000 per month, which will significantly eat into his already tight budget.

Ramelan, 54, an employee at the public works agency, said younger colleagues at his office often tell him about their financial difficulties. "The new fuel prices will further burden them," he said.

Ramelan said that a new employee in his office only earned Rp 750,000 per month at the most, while many other earned much less. The Rp 750,000 consists of a Rp 400,000 basic salary, a Rp 200,000 transportation allowance and a Rp 150,000 welfare bonus.

"Lucky those who live close to their office as they spend less on transportation. But what happens to people who live far way, like in Bekasi. That (their earnings) will not be enough," said Ramelan, a resident of Palmerah subdistrict in Central Jakarta.