Subsidies touted as key to keep wheels turning
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)