Sutiyoso allows bus fare hike of up to 10 percent

Damar Harsanto, The Jakarta Post, Jakarta

Amid mounting protests on the increase in fuel prices and utility rates, Governor Sutiyoso said on Wednesday that his administration would allow a maximum 10 percent increase in public transportation fares.

"At maximum, an increase by 10 percent would be reasonable," Sutiyoso told reporters.

Sutiyoso had the final say in the joint team which was formed to discuss the fares increase.

The current regular bus fares range between Rp 900 and Rp 1,200, while the fare for air-conditioned buses is Rp 3,300.

The joint team, whose members include representatives of the City Transportation Agency, the Organization of Land Transportation Owners (Organda), non-governmental organizations such as the Indonesian Consumers Foundation (YLKI) and the Indonesian Transportation Society, as well as journalists, would begin conducting a survey on Thursday.

"The survey is aimed at finding additional, accurate data necessary to determine whether or not the fares should be increased, and by what percentage if an increase is justifiable," said D.A. Rini, chairwoman of the survey team.

Rini said the team would complete the survey on Jan. 17 and "if all runs smoothly, we might be able to propose a fare increase."

According to procedures, any increase in transportation fares will be signed by the governor after it has been approved by City Council in discussion with YLKI.

Meanwhile, Sularsi of YLKI's complaint and legal affairs division, who also attended the coordination meeting at the City Transportation Agency, said YLKI insisted on rejecting any increase in fares.

She said the increase would be another blow on the public, who have already been overloaded with many burdens as a result of the simultaneous rises in utility tariffs and fuel prices during New Year's.

"Transportation is a vital public service. The government must take responsibility to ensure that the service is still affordable and accessible to the public," she said.

YLKI said earlier that it would refuse to join the team, arguing that such a team would only use the opportunity to approve an increase in fares, similar to what happened last year when YLKI's opinion was ignored.

The last hike in bus fares was made in May last year, when the administration increased the fares by an average of 14 percent. At that time, diesel fuel prices were raised from Rp 1,250 to Rp 1,400 per liter, but which the government increased in August to Rp 1,550, while the bus fares remained the same price.

Sularsi added the administration could provide fuel subsidies to the ailing transportation sector, supported by a transparent and accountable reporting mechanism.

"Or, at the very least, the administration could help reduce illegal levies in the sector, which has caused inefficiencies," said Sularsi.

It is public knowledge that bus drivers and transportation firms have long been cash cows for local thugs, unscrupulous officials and police officers.

The Jakarta Post reported earlier last year that each bus driver had to pay an illegal levy, the so-called "security fee" of between Rp 30,000 and Rp 50,000 a day, which were imposed at certain bus stations or garages, while transportation firms were required to pay around Rp 1.8 million in "coordination fees" to officials of the City Land Transportation Agency (DLLAJ) and police officers.

Meanwhile, I.G.N. Oka, an assistant with the board of directors of bus operator Mayasari Bhakti, declined to comment on Sutiyoso's proposed 10 percent hike.

He did mention, however, that his company had already suffered between Rp 43 million and Rp 50 million a day in losses to pay for additional operational costs following the increase in diesel fuel price from Rp 1,550 to Rp 1,890 per liter.

Oka said his company had stocked up on the diesel for about 900 buses plying routes through Greater Jakarta.

"We hope this team can reach a final decision on the fares increase quickly, so we can halt our losses," said Oka.

Head of the City Transportation Agency, Rustam Effendy, said an increase was necessary to offset the significant fuel price hike.

"Now that it (the diesel oil) has been raised to Rp 1,890 a liter, it will be hard for the (transport) business to survive," said Rustam.