Indonesian Political, Business & Finance News

Transportation owners seek reasonable fare hike

| Source: JP

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)

View JSON | Print