Sutiyoso turns down offer to have debt-ridden PPD
Damar Harsanto, The Jakarta Post, Jakarta
The Jakarta administration has given the cold shoulder to the Ministry of Transportation over its plan to hand over ailing state-owned Perum Pengangkutan Penumpang Djakarta (PPD) to the administration amid the bus company's lingering financial woes.
Governor Sutiyoso demanded on Tuesday the central government solve the company's financial problems before handing it over to the city administration.
"Personally, I agree with the idea of handing over PPD to the administration since it is in line with the spirit of autonomy. However, we hope the central government solves the company's financial problems so they do not burden the administration," Sutiyoso said at City Hall.
Sutiyoso was asked to comment on a statement made by Minister of Transportation Hatta Radjasa and the state minister of state enterprises during a hearing with the House of Representatives on Monday, that the government planned to hand the company over to the city administration.
City Transportation Agency head Rustam Effendy Sidabutar objected to the plan, saying the administration did not stand to benefit.
"Of course we don't want to accept buses that are not roadworthy," Rustam said.
"Besides which, we have no time to sell the assets being transferred to the city administration to cover the company's massive debts," Rustam said.
Data on the official website of Perum PPD shows that the company has 813 buses, most of which have exceeded their effective lifespan of 15 years for a public bus. Of the 813 buses, only 575 are operational, plying 61 of the 152 routes PPD serves across the capital.
The company's financial woes are partly due to the size of its workforce -- though only 575 of its buses are on the road, the company has 8,824 employees.
The government said it would need at least Rp 250 billion to restore the company to financial good health. The company has not paid its employees' salaries for five months.
Separately, hundreds of drivers and crew members of PPD went on strike on Tuesday, demonstrating in front of the Presidential Palace in Central Jakarta to demand their salaries. They had also demonstrated on Monday.
The rally caused a traffic jam on Jl. Medan Merdeka Utara.
The administration said it had ordered other bus operators to take over routes normally served by PPD to prevent commuters from being stranded.