Indonesian Political, Business & Finance News

Sutiyoso prepared to back down on bus fare hike

| Source: JP

Sutiyoso prepared to back down on bus fare hike

JAKARTA (JP): Governor Sutiyoso said on Tuesday he was
prepared to annul the administration's plans to increase both bus
and parking fees if the plan proved too unpopular.

However, he warned that delaying the hikes could lead to
problems, including the possibility of a bus drivers' strike.

"I have repeatedly said these hikes are problematic, because
they would mean pleasing one party at the expense of another."

He said if enough groups opposed the planned hike, especially
if dissatisfaction was voiced from the legislative council, he
would suspend the decision.

His statement contrasted with his earlier announcement on
Monday that increased bus fares would come into effect in the
first week of August.

The administration has already backed down several times from
plans to raise parking fees because of strong opposition from
city councilors and the Indonesian Consumers Organization (YLKI).

The administration announced last week that the Jakarta Land
Transportation Agency (DLLAJR), the Association of Public Land
Transportation Owners (Organda) and YLKI had agreed on a new bus
fare structure.

The proposal includes:

* Rp 500 for regular buses, from Rp 300.

* Rp 900 for non-airconditioned and limited buses (PATAS),
from Rp 700.

* Rp 700 for minibuses, from Rp 500.

* Rp 2,500 for air-conditioned PATAS buses, from Rp 2,300.

* Rp 200 for students, from Rp 100.

YLKI denied it had agreed to the new fare structure and
described the announcement as "politically motivated".

YLKI deputy chairman Agus Pambagio was insistent the
administration should first calculate the various components of
the fares and try to keep revisions as low as possible.

He said the public would as a consequence not be burdened,
while cash-strapped bus operators would also be assisted.

Parking

YLKI has also opposed a plan to increase parking fees and
establish a 35 percent levy for private operators, because the
administration was yet to provide better parking management.

Under the proposal, parking fees would be raised to between Rp
500 and Rp 1,000 for the first hour for sedans, jeeps, minibuses
and vans in on-street parking in moderately crowded and crowded
areas managed by city-owned parking operator BP Parkir.

Off-street parking fees would be set at between Rp 500 to Rp
1,000 an hour depending on vehicle frequency in the area.

City councilor Ali Imron Husein of the United Development
Party (PPP) faction said bus fare hikes should be postponed until
next year, because the public already carried a heavy burden as a
result of the economic crisis.

He said a more stable rupiah should lead to lower costs for
imported bus spare parts, and remove any reason for public
transportation companies or cooperatives to go bankrupt as often
claimed by the administration.

"Transport companies say they can't cope with skyrocketing
prices of imported spare parts. Why should these increase now
when the rupiah has been strengthening in value against the U.S.
everyday?" Ali asked.

Council Speaker Edy Waluyo called on Tuesday for the central
government to provide subsidies to help bus operators.

"The government should either waive taxes on spare parts, or
give them subsidies for the purchase of spare parts," Edy said.

The administration had earlier announced fares would be
increased beginning this week, but later postponed the move to
August, creating confusion for the public and bus conductors.

DLLAJR chief Buyung Atang said he would deploy personnel to
ride city buses on Wednesday and take down the names of drivers
and conductors who charged more than the standard fare.

"If we have to, we could revoke their route permits," Buyung
said.(ind/ylt)

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