Indonesian Political, Business & Finance News

Road tolls rise by 25 percent

| Source: JP

Road tolls rise by 25 percent

Arya Abhiseka, The Jakarta Post, Jakarta

Starting at midnight on Tuesday, toll road charges across the
country were raised by about 25 percent on average, despite
complaints that the operators have failed to provide adequate
services to the public.

The toll charge for Type I vehicles (sedans and other light
vehicles) in the Jakarta inner-ring road network -- notorious for
traffic jams during rush hours -- was increased to Rp 4,000 (44
U.S. cents) from the previous Rp 3,000.

"However, public buses are exempt from the increase, and
therefore, the public need not worry," said Kariman Usman from
the House of Representatives Commission IV, which oversees
infrastructure and transportation affairs.

He was accompanying Minister of Settlements and Regional
Infrastructure Soenarno who announced the increase in a news
conference at the latter's office in Jakarta.

The toll road operators defended the rise by saying that
despite inflation, the companies had not increased toll charges
since 1992, while they also needed to raise funds to develop new
toll roads nationwide.

Meanwhile, the public has widely criticized the increase and
questioned the operators' commitment to improve current road
services.

"I do not understand why we have to help finance toll road
networks as we do not get anything in return, such as a system to
lessen traffic congestion in the Jakarta inner-ring road. I
honestly question their management for failing to seek their own
source of funding to develop new road networks," said Vivian
Idris, a film publicist who uses toll roads daily.

PT Jasa Marga, the largest toll operator, has reportedly
incurred losses of up to Rp 7.55 trillion, half of which were the
result of internal mismanagement.

A report on the losses was made by a public accountants
office, Hadi Susanto and Partners, in cooperation with
PricewaterhouseCooper (PwC), based on the company's activities
between the period of January 1995 and December 1999.

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New Jakarta Toll Charges
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Type I Type I Type IIA Type IIA Type IIB

public public
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Jakarta inner
Toll road 4,000 2,000 5,000 2,000 6,500
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Serpong --
Pd. Aren 2,500 2,000 4,500 3,500 5,500
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Jagorawi:
Taman Mini 1,000 500 1,000 800 1,000
Dukuh 1,000 500 1,000 800 1,000

Cikampek:
Pd. Gede Barat 1,000 500 1,000 800 1,000
Pd. Gede Timur 1,000 500 1,000 800 1,000

Tangerang:
Kebon Jeruk 1,000 500 1,000 800 1,000
Meruya 1,000 500 1,000 800 1,000
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Type I : sedans, jeeps, pick-ups and small trucks, medium
buses
Type I public : small and medium buses
Type IIA : large buses and truck with two axles
Type IIA public: large buses with two axles
Type IIB : large buses and trucks with three axles

Source: Ministry for Settlements and Regional Infrastructure
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