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Govt set to lower bus fares after fuel price cuts

Transportation Minister Jusman Syafei Djamal announced Sunday the government was to cut inter-city and interprovincial (AKAP) bus fares by 5

Yuli Tri Suwarni (The Jakarta Post)
Bandung
Mon, December 22, 2008

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Govt set to lower bus fares after fuel price cuts

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ransportation Minister Jusman Syafei Djamal announced Sunday the government was to cut inter-city and interprovincial (AKAP) bus fares by 5.22 percent at the start of next year, thanks to fuel price cuts.

Jusman said his office would send circulars to regional administration heads including governors, regents and mayors, requiring them to implement the same cut in public transportation fares in their respective jurisdictions.

"Some mayors have taken the initiative. Bandung is the most aggressive, with a Rp 500 cut in fares," Jusman told reporters after launching the 'Baraya Geulis' electric diesel railway train (KRDE) serving the Padalarang-Cicalengka route, here Sunday.

Jusman explained that the AKAP fare cut came under the authority of central government, while inter-city fare cuts within provinces came under the provincial administration.

Regency and municipal administrations, he added, were responsible for the fares of city buses.

Head of West Java Transportation Agency Herli Suherli said that the impact of the fuel price cuts on bus fares had been under discussion between the agency and the provincial Organization of Land Transportation Owners (Organda).

He said the impact was considered insignificant as it only lowered the operational costs of big buses by about 4 percent and reduced costs by three percent for smaller and city buses.

"The small impact is because the prices of spare parts are still high in the market," Herli said.

He added, however, that the fare cut needed to be passed on for the sake of fairness to the consumers. But the West Java branch of Organda refused to do so because of the high prices of spare parts.

"Hopefuly the fare cut can be applied by the beginning of next year. The government has to be in the pivotal position in this case," Herli said.

He added he would lobby Organda considering that consumers had been protesting and complaining over the high transportation fares, despite the fuel price cut.

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