Sutiyoso still wants buses from Texmaco

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)