Toll road operators urge govt to raise tariffs

Toll road operators urge govt to raise tariffs

JAKARTA (JP): Toll road operators asked the government on
Tuesday to increase toll road tariffs to offset soaring
maintenance costs.

Wiyoga Adiwasito, president of the state-owned toll road
operator PT Jasa Marga, said that the economic crisis resulted in
a reduced number of toll road users in 1998.

The drop, he said, had led to a decline in revenue for most
toll road operators, adding that his company's revenues fell by
7.3 percent to Rp 674 billion in 1997 from Rp 727 billion in
1997.

Wiyoga said maintenance costs increased by 12.3 percent to Rp
419 billion last year from Rp 373 billion in 1997.

"Increasing the toll road tariffs will enable us to upgrade
existing toll road services," he said during a hearing with the
House of Representatives Commission IV for public works,
transportation, tourism, communications and public housing.

He acknowledged that many people had made complaints about the
service, the safety and traffic jams on toll roads.

"We regard the complaints as a strong motivation for increased
investment in order to improve toll road services."

Speaking at the same hearing, Siti Hardijanti Rukmana,
president of publicly listed private toll road operator PT Citra
Marga Nusaphala Persada (CMNP), said that toll roads needed more
investment so that operators could improve their services.

Hardijanti, the eldest daughter of former president Soeharto,
said tariffs for Indonesian toll roads are the lowest in Asian
countries.

She cited the toll road tariff for the 7.1 kilometers of Metro
Manila highway, the Philippines, which is set at 30 pesos (Rp
6,000). The tariff for the same category for the Cawang-Tanjung
Priok highway in Jakarta, which covers 28.4 kilometers, is set at
Rp 3,000.

"We understand that it is very difficult to raise toll
tariffs, because it will place a heavy burden on people during
the current economic crisis.

"But the adjustment of toll road rates is important in
relation to the private investors who finance construction. So, I
suggest the government to set a clear formula to adjust toll road
rates to give investors business certainty," she said.

Publicly listed CMNP, manages the Cawang-Tanjung Priok and the
Tanjung Priok-Pluit-Tomang toll roads.

The company last raised tolls by Rp 500 (about 5.8 U.S. cents
at the current rate) to between Rp 2,000 and Rp 5,000 in June
1996.

The government allows private investors to build and manage
toll roads, but the toll rates are set by the government on the
basis of a presidential decree at the recommendation of the
minister of public works.

Commission chairman Burhanuddin Napitupulu said that toll road
operators should postpone their demands for a tariff increase
until the economic situation returned to normal.

"It is difficult to raise toll tariffs in the current economic
condition. We asked the companies involved to help shoulder the
difficulties during the current monetary crisis and wait until
the situation returns to normal."

Burhanuddin said that toll road tariffs should instead be
lowered, because investors not only had recouped their capital
but also had realized handsome profits.

The proposal will shortly be discussed between the commission
and the government. (gis)