YLKI demands subsidy for bus operators

YLKI demands subsidy for bus operators

JAKARTA (JP): The Indonesian Consumers Foundation (YLKI) urged
the government on Wednesday to provide a subsidy for bus
operators to avoid a bus fare increase since Jakartans, based on
its last survey, could only pay a fare of up to Rp 600.

Speaking after a meeting with councillors, city officials and
bus operators, YLKI deputy chairman Agus Pambagio said that based
on a survey conducted by the foundation last year, people
generally would not be able to afford more than Rp 600 for the
regular bus fare, that currently stays at Rp 500.

Nevertheless, Agus also acknowledged that bus operators would
still suffer with a bus fare of Rp 600. This fare would not cover
bus companies' operational costs due to the rise in fuel and
spare parts prices.

"It's a dilemma. It's either the bus operators that would be
finished or the public that would suffer.

"The government, therefore, should provide a subsidy. However,
the mechanism for the distribution of the subsidy must be clear,"
Agus told reporters at the City Council compound.

The government earlier promised to give a subsidy of Rp 216
billion to bus operators in 20 big cities across the country, but
until now, when and how it would be disbursed is still unclear.

According to Agus, if the increase in bus fares was based
solely on the fuel price rise, it would be insignificant since
the fuel component constituted less than 10 percent of bus
companies' operational costs.

He acknowledged that the increase in spare parts prices had a
greater impact on operational costs compared to the fuel price
increase.

The spare parts prices have risen due to the weakening of the
rupiah against the U.S. dollar as most of the imported parts are
paid for in dollars and sold to bus operators in rupiah, he said.

"So, the problem is in our macroeconomy. It would be normal if
the rupiah's conversion rate returned to Rp 6,000 per dollar.

"Therefore, the calculation of the bus fare increase should
not be based on all contributing factors because we would not
come to a reasonable level for the bus fare increase," Agus said
after the meeting.

On hand at the meeting were the head of the City Land
Transportation Agency (DLLAJ), Rustam Effendy, and the head of
the city's Organization of Land Transportation Owners (Organda),
Aip Syaifuddin.

All participants at the meeting, with the exception of YLKI
executives, agreed to set up a team to calculate the most
acceptable bus fare.

Separately, City Governor Sutiyoso urged the City Council to
consider bus operators' interests and raise the level of its
recommended fare increase.

"In the current situation, we should not anymore use politics
as the main consideration for bus fares. The council should
consider technical matters as well," Sutiyoso told reporters on
Wednesday.

The administration proposed an increase of between 40 percent
and 57 percent, while the council only recommended an increase of
between 14 percent and 30 percent.

The city administration postponed on Tuesday the plan to
increase the fare for a week due to differences between its
proposal and the council's recommendation. (jun)