Sutiyoso approves bus firm subsidies

Sutiyoso approves bus firm subsidies

JAKARTA (JP): Governor Sutiyoso said on Friday he had signed a
decree which would grant subsidies to the city's bus firms, a
move certain to head off a planned mass strike by bus drivers and
owners.

"I signed the letter of approval yesterday (Thursday). But, I
will verify it again with my staff," Sutiyoso said.

The governor did not specify the date the decree would become
effective.

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.

The bus owners earlier said that the prolonged economic crisis
had increased their firms' operational costs. They said
maintenance expenditure and the cost of spare parts had
skyrocketed.

Sutiyoso promised on Sept. 10 that the city would grant
subsidies to the city's bus firm owners in the form of a 50
percent discount on several taxes and fees.

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

After news of the promise reached the bus firms, plans for a
mass strike were canceled.

However, the bus owners, grouped in the Association of Land
Transportation Owners (Organda), renewed their threats on Tuesday
after learning that the city administration was yet to grant the
subsidies.

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

The new council, installed on Aug. 25, has also rejected the
proposal, despite a plea from Sutiyoso to study the proposal in
depth.

He proposed a Rp 200 (2 US cents) 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.

Sutiyoso earlier said the subsidies would reduce the city's
income by Rp 7 billion ($875,000) a year. (jun)