Transportation fees

Transportation fees

From Media Indonesia

I appreciate the Minister of Transportation's strong opposition to the proposal to raise bus fares. This is certainly done for public interest, but doesn't mean the fate of the bus companies and their employees is being ignored.

Unfortunately the problem does not end with the minister's refusal because the present bus fares have not kept up with inflation. The bus companies therefore become a victim of macro- economic policy. On the other hand, other business sectors, particularly powerful lobbies, easily manage the market prices to their liking -- sometimes forcing a price change that has been set by the government.

It is important to a find an equitable solution to the problem of transportation costs. I suggest the government resort to a fiscal approach. The bus companies should be exempted from fiscal duties for the procurement of vehicles and spare parts. The government should allow reduction of vehicle tax, cost of inspection, route licenses and toll road fees. All these rulings will substantially reduce the operational cost of the transportation companies as well as the capital cost.

To make up the losses suffered by the government, an increase of tax on private cars should be considered, taking into account the type and size of the automobiles.

Increasing bus fares will only add to the burden of low-income earners.

ERIZELI

Jakarta