Organda rejects bus tariff cut

The Central Sulawesi chapter of the Organization of Land Transportation Owners (Organda) has sternly rejected the provincial administration’s decision to reduce transportation tariffs for city and inter-city buses and public minivans by 15 percent.

“Whatever the reasons, we remain in objection of the policy of reducing transportation fares by 15 percent,” Organda Chairman Syamsuddin Batjo told The Jakarta Post in Palu on Tuesday.    

Syamsuddin said bus owners would be disadvantaged by the tariff reductions because the decrease in gasoline and diesel fuel prices would not have a significant influence on the operational costs of their vehicles.

He added that the fuel price cuts had had no effect on the price of locally made and imported
car replacement parts. “The price of car spare parts is instead tending to rise. So, the transportation tariff should be adjusted to the national tariff,” he said.

The national transportation tariff on vehicles using gasoline and diesel fuel has dropped to 10 and 5 percent respectively.

Syamsuddin said many bus companies in the province would have to reduce or totally stop operating their fleets if fares were to match the transportation office’s tariff adjustments, as they would not be able to cover operational costs.

He added that the provincial administration should meticulously set transportation tariffs to avoid transportation companies from incurring loss. “I agreed with a reduction in tariffs but if possible it should not exceed, or at least be the same as the central government’s policy,” he said.

Head of the Central Sulawesi Transportation Office Bambang Sunaryo said his office had carefully calculated the tariff adjustments. He however said that the 15 percent tariff reduction for gasoline and 8 percent for diesel fuel was not a final decision and could possibly be revised based on the agreement between relevant institutions, including Organda and the Palu chapter Consumer Protection Agency.