Thu, 12 Jun 2003

Toll roads remain congested

Arya Abhiseka, The Jakarta Post, Jakarta

Erry Harijanto, 27, admitted on Wednesday that he was only made aware of the increase in toll road charges in the Jakarta inner- ring road from a newspaper this morning.

"I do not see any improvement in toll road services this evening as the road is still heavily congested, especially in the Cawang area," he told The Jakarta Post.

"But I also did not expect any improvement on the part of toll operators as I know that they are simply unprofessional," added Erry, a resident of Kemanggisan, West Jakarta.

The government raised toll road charges by 25 percent on average across Indonesia starting at midnight on Tuesday, despite criticism of the operators' commitment to improving their services and internal management.

The charges for sedans and other light vehicles in the Jakarta inner-ring road -- well-known for its massive jams during rush hours -- rose to Rp 4,000 from a previous Rp 3,000. Public buses will not have to pay the increase.

Public criticism centered on the lack of efforts by both the government and the operators to explain the hike.

"I do not understand why we have to help finance toll road networks as we do not get any benefit in return, such as a system to reduce traffic congestion," said Vivian Idris, a film publicist who uses toll roads daily.

"I honestly question why the toll road management cannot find their own funding sources to develop more projects," she added.

The authorities said the increase was to cover the financing of new toll roads.

Critics and consumers said the increases were unacceptable as the toll operators, led by state-owned PT Jasa Marga, failed to provide a free ride to commuters trapped in traffic jams.

The Indonesian Consumers Foundation (YLKI) demanded on Wednesday that the increase be canceled until the operators improved services and addressed irregularities.

"We just want to avoid the situation where the public is actually financing Jasa Marga's debt payment programs," YLHI said in a statement.

It said the increases violated Law No. 13/1980 on highways, which stipulated that toll charges had to be based on the benefits a customer receives, not on the cost of another investment or on losses that needed to be covered.

"Therefore, the increase is invalid as the consumers' rights are not protected," the foundation said.

A financial report revealed that the company had losses of up to Rp 7.55 trillion, half of which were caused by internal mismanagement. The report was made by public accountant office Hadi Susanto and Partners and PricewaterhouseCooper (PwC), based on Jasa Marga's activities between January 1995 and December 1999.

However, according to Jasa Marga's financial report, which was audited by the public accountant office of Amir Yusuf and Aryanto Yusuf, the company managed to gain profits of Rp 157 billion in 2001 and Rp 148 billion in 2002.

The hike announced by Minister of Settlements and Regional Infrastructure Soenarno at his office had been approved by the House of Representatives.

A presidential decree was issued before the toll hike took effect.