Team proposes new bus fares increase

Team proposes new bus fares increase

JAKARTA (JP): A joint team tasked to calculate city bus fares
increases decided on Tuesday to drop the central government
subsidy for bus operators and proposed new fares for city buses.

The team, comprising representatives from the City Council,
the city administration and the City's Traffic and Land
Transportation Agency (DLLAJ), the City's Organization of Land
Transportation Owners (Organda) and the City's Indonesian
Transportation Worker Union (SPTI), presented on Tuesday its
proposed bus fares to the council.

Chairman of the council's Commission D Sayogo Hendro Subroto,
said the council would likely forward the proposed bus fare
increase to the city governor, possibly on Wednesday, to be
approved and announced to the public.

"The council leaders have agreed with the recommendation. We
hope we can soon send it to the city administration," Sayogo, of
the Indonesian Democratic Party of Struggle, told reporters.

According to the team's proposal, fare for regular buses
should be increased from Rp 500 to Rp 700, for mid-range buses
and limited-seat buses from Rp 700 to Rp 900, and for students
from Rp 200 to Rp 300.

Meanwhile, fares for air-conditioned bus, which currently
stands at Rp 2,500, should be left for the market to determine.

The team's proposed bus fares are higher than those proposed
by the city council, but lower than those proposed by the city
administration.

The council proposed an increase of up to 30 percent in bus
fares, while the city administration proposed an increase of up
to 57 percent.

Sayogo said the team dropped the subsidy from its calculations
because it had never been clear if the central government would
disburse the funds.

"If the subsidy is really disbursed, we could give it to poor
people here," Sayogo said.

He said the team had taken into account not only the recent
fuel price increase but also an increase in the cost of spare
parts in its calculation of the new bus fares.

Organda chairman Aip Syaifuddin welcomed the proposal from the
team, noting that the fares increase would create a possibility
for bus operators to rejuvenate their fleets.

"We thank the council and the team for accommodating Organda's
aspirations," Aip said.

He said his association would meet local bus producer PT
Texmaco next meek to discuss its plan to purchase new buses.

"But we still plan to use other bus brands in the
rejuvenation program," he added.

Organda earlier ordered some 2,000 Perkasa buses from Texmaco
as part of the bus rejuvenation program. However, Texmaco could
not yet produce the buses, since no financial institution was
prepared to finance the production due to the low bus fares.
(jun)