State-owned PPD to operate 1,678 new buses

JAKARTA (JP): The city-owned bus company PPD will soon operate 1,678 new buses in the city in cooperation with six private companies, an official of the company said yesterday.

Anwar Delmy, director of the company's general affairs, told reporters at City Hall that operation of the new buses is intended mainly to improve services in public transportation.

"The cooperation with the private companies is considered the best way to help PPD rejuvenate its fleet and improve its financial performance," Anwar said after a presentation on public transportation with its sanitation and human resources research.

PPD has suffered great losses in the past three years, with losses of Rp 15.91 billion (US$7.2 million) registered last year alone.

The company, which employs about 11,000 personnel, currently runs 1,475 Mercedes Benz, 140 Leyland and Volvo double-deckers and 19 articulated Jing Hua buses.

Out of this number only 1,010 buses are operable, with the rest damaged, being repaired, serviced or in technical tests.

Fifty-seven percent of these buses are more than five years old and only nine percent are less than three years old.

Anwar hailed the private companies' willingness to cooperate in the public transportation business. "It is a very good cooperation," he said.

He said the cooperation between PPD and the private firms will be conducted under a joint operation project, in which the private companies provide the buses, while PPD supplies their human resources, including drivers and other bus crews.

The private firms joining the cooperation project are PO Garuda Mas, PO Setiakawan, Fajar Utama Mandiri, Intras Jaya, Senawangi and Volgreen.

PO Garuda Mas has signed an agreement to operating 100 new buses under a one-year contract, and another four firms have signed agreements for eight-year contracts.

Under the agreement, Fajar Utama Mandiri will operate 1,000 buses, Intras Jaya 200 buses, Senawangi 78 buses and Volgreen 200 buses.

The agreement with PO Setiakawan, for the operation of 100 buses, however, has not yet been signed.

Anwar said the buses owned by PT Fajar Utama Mandiri will operate on regular routes, while those owned by the other companies will operate on express and limited routes.

However, Anwar said, the operation of the new buses is still waiting for a green light from the Ministry of Finance.

"The approval from the ministry is still being prepared," Anwar said.

He said that PT Senawangi has operated 17 double-deckers and PT Intras Jaya 10 double-deckers in a trial run of the cooperation.

The 27 vehicles are renovated version of the old double- deckers, he said. (yns)