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Jakarta Post

Taxi operators delay rolling out new fares

Many taxi companies have delayed the introduction of recently approved new fares, saying they need more time to convince drivers to accept them

Adisti Sukma Sawitri (The Jakarta Post)
Jakarta
Wed, June 18, 2008

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Taxi operators delay rolling out new fares

Many taxi companies have delayed the introduction of recently approved new fares, saying they need more time to convince drivers to accept them.

Blue Bird Group spokesman Teguh Wijayanto said the company needed more time to negotiate a new remuneration system.

"We can't just implement the rates when they (drivers) are resistant. We treat drivers as our partners, so everything must be done with their consent," he said here Tuesday.

Teguh said the group, controlling about 10,000 taxis in Greater Jakarta, still partly covered fuel costs of each car's daily operation to ease the impacts of the fuel price increases last month.

He said Blue Bird had yet to decide how much longer it would maintain its current rates of Rp 5,000 (54 U.S. cents) for flag fall and Rp 2,500 per kilometer.

The administration last week approved a 20 percent increase in taxi fares, raising flag fall to Rp 6,000 and the per-kilometer charge to Rp 3,000.

Blue Bird rates are among the highest in Jakarta.

Express Group, running about 3,000 taxis in Greater Jakarta, has also delayed implementation of new fares.

The company's operational director Herwan Gozali said the company planned to keep its fares at Rp 4,000 for flag fall and Rp 1,800 per kilometer until it could reach an understanding with drivers.

"We are sure we won't lack for customers in applying new rates. We just need to convince our drivers," he said.

Herwan said the company was also trying to find a way to keep the drivers' minimum daily fee at Rp 177,500.

Secretary of the Land Transportation Owners Organization (Organda) TR Panjaitan said it would take time before new rates were applied, as drivers needed time to adjust their fare meters.

"After the meters have been adjusted, the administration has to assure the their performance," he said, adding that Putra was the only taxi company having finished preparing the new meters for all its taxis.

Putra, which used to have fares as low as Express, has applied new rates.

Panjaitan said companies not compliant with the new fares would face punishment.

Taxi drivers said they were afraid the higher fares would lead to lost customers.

"I've lost several passengers already due to the fuel price increases. The new fares will just make it worse," said a Blue Bird driver, Asmara.

An Express taxi driver, who requested anonymity, also said the new fares would hurt daily income. (uwi)

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