Public transport group lobbies for higher fares
Public transport group lobbies for higher fares
JAKARTA (JP): The organization of land transportation owners,
Organda, has proposed to the Ministry of Transportation that
public transportation fees be increased. A proposal submitted
earlier this year drew no response from the city administration.
Organda chairman Aip Syarifuddin said yesterday that the
organization wanted public bus and taxi fares to be increased.
The fares on regular buses should be increased from Rp 250 (11
U.S. cents) to Rp 500, Patas buses (quick, limited service) from
Rp 550 to Rp 900 and air-conditioned buses from Rp 1,300 to Rp
1,750.
He added that the current taxi flag fall of Rp 900 is now too
low. Thus Organda suggested it be increased to Rp 1,500, while
stating that inter-city bus fares should be determined per
kilometer.
Aip said the increases are important in meeting current
demands, because public transportation fares have not been
increased since 1990.
"The current fares are not suitable anymore and as a result
public transportation services are poor," Aip told reporters.
He explained that poor services are caused by the fact that
many public transportation owners cannot afford to buy spare
parts for their fleets and this condition forces them to use
secondhand replacement parts.
He did not, however, guarantee that services would improve
after the increases.
Alternative
Aip added that if the government rejects the proposal on the
grounds that the new fares are considered too high for the public
then the government should compensate the transportation
companies.
"Let's say the proposal is turned down. The government could
arrange loans for small enterprises, locally known as low-
interest KUK, for the Organda members. A reduction of tax rates
and import duties for imported vehicle spare parts should also be
granted," he said.
Aip explained that most transportation companies buy vehicles
with credit facilities with a 30 percent interest rate. KUK
charges only 12 percent interest.
The larger interest rate hampers the transportation companies
in renewing their fleets, Aip said.
"We have proposed this to the government, which provides the
KUK loan scheme only to cooperatives," he said.
"To my point of view, it would be more effective for the
transportation companies and the public in general if the
government were to extend such facilities rather than increase
transport fares," he cited an alternative. (yns)