YLKI sees possible bus fare war

JAKARTA: The Indonesian Consumers Foundation (YLKI) said it saw the possibility of a fare war breaking out among bus companies during the peak travel season, following a government plan to introduce a set increase and reduction on fares to replace the existing pricing mechanism.

Ministry of Transportation has recommended a ceiling of a 20 percent increase and a 20 percent cut on all bus fares during the upcoming mass exodus and return of holidayers during Idul Fitri, which falls on Dec. 5 and Dec. 6 this year.

"This is not the right time to submit this proposal because the government is still studying it," the YLKI coordinator on transportation affairs, Tulus Abadi, said on Saturday.

"Leaving the fare cuts and increases to bus companies could result in price cartels led by the companies," he added.

Tulus said the government should instead improve the transportation infrastructure and do its best to reduce traffic jams, which always occur during Idul Fitri.

Tulus said bus companies were hit hard by poor road conditions and lengthy traffic jams. -- JP