Sutiyoso says hike in bus fares undecided

JAKARTA (JP): The city administration is waiting to receive input from various parties before it decides by how much public transportation fares will be increased, Governor Sutiyoso said on Tuesday.

Sutiyoso said he was aware that the decision to increase fares would be unpopular.

"But we should increase fares because we must also consider that the transportation sector has been hard hit by the economic crisis, which has caused a hike in the prices of spare parts," he said.

For that reason, Sutiyoso said, the administration would try its best to minimize the fare increase, especially for students.

The governor said he had instructed his staff to listen to input from all parties, including the Association of Land Transportation Owners (Organda), the Indonesian Consumers Association (YLKI) and city councilors.

"I understand that, although supported by reasonable arguments, Organda's proposal to increase fares by up to 300 percent is not likely to be realized, but we are still looking for ways to please every party," he said.

It was initially planned that fares for regular buses in Jakarta would be increased in stages from Rp 300 per passenger to Rp 900, non-air-conditioned express and limited (PATAS) buses from Rp 700 to Rp 1,350, minibuses from Rp 500 to Rp 1,150 and mikrolet (minivans) from Rp 800 to Rp 1,350.

Minister of Communications Giri Suseno Hadihardjono has said that an increase is needed to avoid a serious drop in the number of operational buses, as soon bus owners would no longer be able to operate their fleets due to skyrocketing prices of vehicle spare parts and new buses.

Data from Organda reveals that of 21,987 buses registered here, only 70 percent, or 15,390 vehicles, are currently operating.

YLKI's support

After a meeting with the administration on Monday, YLKI vice chairman Agus Pambagio said YLKI supported the plan to increase fares, but added that the burden should not be borne solely by the public.

"There are still many ways out to lessen the burden on people and transportation businesses. The first and significant step is the eradication of illegal levies as the transportation sector has for many years been the target of such action that causes a high-cost economy," he said.

He said businesspeople could then subsidize fares using the money saved by not having to pay illegal levies. "That's why the governor should guarantee that there will no longer be such illegal action."

If, after eradicating illegal fees, the amount falls short of the amount needed the administration should give a subsidy to the sector, he said.

"Everywhere in the world, public transportation is subsidized by the government," he said.

However, Agus said the subsidy should not be in the form of money as it would be prone to corruption.

"The subsidy could be in the form of, among other things, the easing of tax on imported spare parts for public transportation and fees for transportation route licenses," he said.

City Council's Commission D for administration affairs member Wien Ritola said after the meeting that the council supported YLKI's input on the subsidy.

Moreover, she said, the council would fight to have the planned increase rejected because of people's poor financial condition these days.

"For that reason there is no other way than a subsidy," she said. (ind)