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)