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