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View all search resultsPublic transportation tariff expected to increase only by 10-20 percent
The Transportation Ministry's director general for land transportation Soeroyo Alimoeso said the tariff increase of public transportation should be set only between 10 to 20 percent if the government-proposed subsidized-fuel price hike took effect
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T
he Transportation Ministry's director general for land transportation Soeroyo Alimoeso said the tariff increase of public transportation should be set only between 10 to 20 percent if the government-proposed subsidized-fuel price hike took effect.
'Definitely, the fuel price hike may lead to a rise in public transportation tariff; but, the tariff is expected to increase only by 10 to 20 percent,' Soeroyo said on Monday, as quoted by Antara news agency.
Soeroyo said that the maximum increase of 10-20 percent was due to several concerns, in particular considering the people's purchasing power.
During a plenary meeting, on Monday, the House of Representatives approved the subsidized-fuel price hike as it endorsed the draft bill of the 2013 revised state budget (APBN-P).
Under the newly-approved revised state budget, the subsidized fuel price increased by 33 percent to Rp 6,500 (66 US cents) per liter.
Soeroyo said the price hike could raise the public transportation tariff by up to 39 percent; however, there was unlikely to be such a high tariff increase due to the current economic conditions of the people.
He said the fuel hikes were unavoidable because high fuel subsidies had burdened the state budget in 2013, whereas the subsidies appeared seriously mistargeted.
'Mostly, fuel subsidies went to rich people's private vehicles while only 7 percent of the subsidies were used for public transportation,' said Soeroyo. (ebf)
