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Jakarta Post

Organda refuses public tenders for busway operations

TransJakarta bus suppliers are demanding the city administration annul the results of recent bus public tenders and cancel future tenders

Mustaqim Adamrah (The Jakarta Post)
Jakarta
Thu, February 28, 2008

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Organda refuses public tenders for busway operations

TransJakarta bus suppliers are demanding the city administration annul the results of recent bus public tenders and cancel future tenders.

The Organization of Land Transportation Owners (Organda) asked the administration Wednesday not to include PT Primajasa and PT Lorena -- neither of which belong to Organda -- in future cooperations with busway operator TransJakarta.

Organda chairman Herry Rotty said the administration and TransJakarta were being "unfair" by offering public tenders, which in turn prompted the busway operator to then force the lower rates offered by the two tender victors on existing bus suppliers PT Jakarta Trans Metropolitan (JTM) and PT Jakarta Mega Trans (JMT).

"TransJakarta is forcing JTM and JMT to accept lower payments ... otherwise, TransJakarta says their contracts will be revoked," Herry said at City Hall.

Herry was speaking to reporters after meeting Deputy Governor Prijanto and a number of other city officials on the issue.

A 2006 president regulation on service and goods procurement obliges government institutions to hold public tenders for transactions worth more than Rp 50 million (US$5,500).

Primajasa offered a rate of Rp 9,536 (approximately US$1) for every kilometer its supplied buses traveled on Corridor 4 (Pulo Gadung, East Jakarta, to Dukuh Atas, Central Jakarta), and Rp 9,371 per kilometer on Corridor 6 (Ragunan to Kuningan, both in South Jakarta).

Lorena submitted a bid of Rp 16,661 per kilometer to operate busses on Corridor 5 (Kampung Melayu, East Jakarta, to Ancol, North Jakarta) and Rp 9,443 on Corridor 7 (Kampung Rambutan to Kampung Melayu, both in East Jakarta).

JTM, which is responsible for corridors 4 and 6, charges TransJakarta Rp 12,885 per kilometer traveled, while JMT charges TransJakarta Rp 12,885 for each kilometer traveled on Corridor 7.

JMT, which is also responsible for Corridor 5, is yet to operate 17 currently idle buses. TransJakarta plans to pay the company Rp 22,597 per kilometer.

Herry showed reporters a letter he said was sent by TransJakarta to JTM and JMT, explaining the rates charged by the two bus suppliers to TransJakarta "are unsubstantiated".

"Therefore, operations on corridors 4 to 7 are illegal, and no further cooperation can be made in the future," the letter read.

When asked if it would have been fair if the administration also held public tenders for bus procurements for Corridor 2 (Pulo Gadung, East Jakarta, to Harmoni, Central Jakarta) and Corridor 3 (Kalideres, West Jakarta, to Harmoni), Herry said: "It would be better to have no public tenders at all".

He said existing bus suppliers were able to procure all the buses required by TransJakarta.

TransJakarta ideally needs a total of 511 buses on the busway's seven corridors, 165 of which are expected to be obtained through public tenders.

Herry said bus suppliers would not allow their buses to run unless their demands were met, giving the administration a deadline of March 2.

Prijanto said the administration would examine the problem thoroughly and "will provide an answer on Friday afternoon".

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