Sutiyoso says hike in bus fares undecided

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)