Transportation owners seek reasonable fare hike

JAKARTA (JP): The government's recent decision to raise fuel prices by an average of 12 percent beginning in April has drawn strong criticism from public transportation owners who complain of skyrocketing expenses.

The chairman of the Jakarta chapter of the Organization of Land Transportation Owners (Organda), Aip Syarifuddin, said the fuel hike would only create a burden for the owners.

"We have to increase our employees' salaries, pay a higher electric bill and spend more on spare parts," he said at City Hall on Tuesday.

"Even without the fuel price hike, it has been difficult for us to cover all the expenses," he said.

He questioned the government's fuel subsidy for public transportation owners.

"This subsidy can lead to misuse, where private vehicles owners can also use fuel coupons, which entitled the bearer to receive lower fuel prices. Or the owners can claim vehicles which are not in service in order to receive more coupons," he said.

Aip said he would meet on Friday with members of the House of Representatives Commission VIII for environmental, science and technology affairs to discuss the best system to use.

He suggested a fare hike of Rp 1,500 (20 U.S. cents) for regular buses from the current fare of Rp 300. "Even a fare of Rp 1,000 isn't enough to cover our expenses."

He said he had proposed to the government that a soft loan, in the way of subsidies and tax reduction, be facilitated to the public transportation owners.

He questioned the city administration for its failure to keep its promise to provide cheap spare parts.

"Alhamdulillah (Praise the Lord), not yet," he said.

Separately interviewed, Governor Sutiyoso said the city administration would have more money to spend on public transportation if an idea to issue decals was approved to replace the three-in-one policy in restricted zones.

"The money collected from decals could be spent to subsidize transportation owners or to buy new buses," he told reporters at City Hall.

"I acknowledge that the current condition of our public transportation is very bad. Look at those buses of state-owned PPD," he said. (nvn)