Subsidies touted as key to keep wheels turning

JAKARTA (JP): City Council Speaker Edy Waluyo urged the city administration on Wednesday to keep its promise to issue a ruling granting subsidies to bus firms in a bid to avoid a mass strike by drivers and owners.

"We'll ask the governor soon to issue the ruling on bus firm subsidies," Edy said.

He said the council rejected a proposed increase in bus fares, contending that subsidies would be more effective in helping the bus firms avoid the threat of bankruptcy due to skyrocketing prices of vehicle spare parts and components.

A bus fare hike would only provide a further burden to the majority of Jakarta residents still suffering in the prolonged economic crisis, he added.

Operational director of Metromini minibus firm Johannes Damanik also asked Governor Sutiyoso to fulfill his promise to grant subsidies.

"We have not received the government subsidies up to now," Damanik said on Tuesday.

He warned that the bus firms, grouped in the Association of Land Transportation Owners (Organda), would hold a mass strike if Sutiyoso failed to fulfill his pledge.

Damanik did not specify a deadline for the granting of the subsidies or when the strike was planned.

Owners and drivers of city bus firms have repeatedly threatened to strike if the city administration did not allow them to raise fares.

They said the crisis increased their firms' operational costs, including maintenance expenditures and costs of spare parts.

The firms previously canceled a planned strike after Sutiyoso promised them on Sept. 10 to provide subsidies, including a temporary 50 percent reduction on taxes and levies.

"The subsidies will take effect next week," Sutiyoso said last month.

Sutiyoso proposed a bus fare hike in July to the previous City Council, but it was rejected.

The new council, installed on Aug. 25, has also rejected the proposal despite Sutiyoso's urging for it to be studied in depth.

He proposed a Rp 200 fare increase for regular buses, minibuses, limited seat (Patas) buses and air-conditioned Patas buses. The student fare for regular buses would be doubled to Rp 200. (jun)