Sutiyoso still wants buses from Texmaco

JAKARTA (JP): Governor Sutiyoso announced on Friday the city administration's plan to import buses from China or Korea following the central government's decision to exempt the vehicles from import tax.

Sutiyoso, however, suggested that the city import only 50 percent of the buses needed for its rejuvenation plan and purchase the rest from PT Texmaco.

The decision to wave import tax was revealed by Minister of Industry and Trade Luhut B. Panjaitan during a hearing with the House of Representatives on Wednesday.

"We will soon invite bus companies to discuss the import plan," Sutiyoso said.

The City's Land Transportation Owners Association (Organda) recently signed a memorandum of understanding with PT Texmaco. In the agreement 14 bus companies grouped under Organda agreed to order 2,000 large, medium and small Perkasa buses with prices ranging between Rp 200 million (US$18,181) and Rp 250 million each.

But the buses have to yet to be produced because no financial institution is willing to provide loans for them despite Sutiyoso's earlier plea.

The city administration have studied the possibility of importing the vehicles from Chinese bus producer Dong Feng, who have offered a price of between Rp 160 million and Rp 250 million each. The central government, however, demanded 60 percent import tax and then lowered it to 40 percent, before finally agreeing to impose no tax at all.

A South Korean bus producer has also offered its vehicles.

Separately, Organda's secretary Azrul Azis said on Friday that his association would not stick with the agreement to purchase the buses from Texmaco.

"We want the bus rejuvenation program to start soon. If Texmaco cannot provide the buses, why can't we import them?" Azis said.

He said the bus companies are ready to be invited by the city administration to discuss technical matters over importing buses.

The city has about 20,000 small, medium and large buses but only 35 percent of the buses are able to operate while the remaining 65 percent are old, damaged and worn out.(jun)