TransJakarta balks at buying pricey new Busway buses

TransJakarta balks at buying pricey new Busway buses

Damar Harsanto, The Jakarta Post, Jakarta

TransJakarta Busway (BP TransJakarta) revealed Tuesday that the
new buses proposed by the consortium of private bus operators, PT
TransBatavia, would cost Rp 1.5 billion (approximately
US$153,000) each.

The price is almost twice the amount of the buses procured for
the first busway corridor, which ranged between Rp 821.7 million
and Rp 846.5 million.

"We think that the bus price proposed by the consortium is too
high. Higher bus costs simply mean a higher allottment from the
city budget," TransJakarta manager Irzal Z Djamal stated in a
hearing with the City Council's commission D that oversees
transportation and development affairs.

Irzal said his firm had written to Governor Sutiyoso to ask if
he would approve the high price of the buses as well as the brand
to be used, Daewoo.

The city transportation agency has recommended the use of
compressed natural gas-fueled buses made by South Korean firm for
the new busway project.

"We need the (Governor's) approval as a legal basis for us to
follow up on the contract with TransBatavia, the company that
will manage the buses on the second and third busway routes,"
Irzal said.

He also added that it was doubtful that Daewoo was the only
producer that could provide buses with the specifications
required by the transportation agency.

It was necessary to have all things considered to evade legal
problems as the Corruption Eradication Commission was currently
investigating alleged corruption in the procurement of the buses
for the first corridor, Irzal said.

"We also anticipate looming maintenance problems during the
operation of the new buses since Daewoo has no authorized dealer
here," he added.

Irzal also said that the consortium had estimated that it
would charge the administration between Rp 16,000 and Rp 18,000
per kilometer for each bus in the first five years of operation.
In the first busway project, the charge was only Rp 6,400 per
kilometer.

"Of course, we won't be able to pay the huge charges with the
revenue we obtain from the sold tickets unless we raise
significantly the fares or provide a much bigger subsidy," he
said.

TransBatavia president director Azis Rismaya Mahfud said that
his company would not be able to provide the buses before the
busway's scheduled opening in December this year due to some
major lingering problems.

"We need a contract with BP TransJakarta to make a deal with
Daewoo as well as to get loans from banks," he said in the
hearing with the commission earlier on Tuesday.

He said that the launch of the new busway project would be
delayed until "March next year at the earliest."

TransBatavia groups four companies, which routes are being
affected by the new busway: Mayasari Bakti with 50 percent of
shares, Steady Safe with 23 percent of shares, state bus company
PPD with 22 percent and PT Metromini with 5 percent.

After launching the first busway corridor along Blok M in
South Jakarta to Kota in West Jakarta early last year, the
administration is finalizing the development of the second and
third of the busway routes from Pulogadung in East Jakarta to
Harmoni in Central Jakarta and Harmoni to Kalideres in West
Jakarta.