Causal factor: An announcement for a fare increase to Rp 3,000 (29 US Cents) from the current Rp 2,000 is seen on board a Kopaja bus serving the Tanah Abang-Ragunan route
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On the heels of the subsidized fuel price hike, Governor Joko 'Jokowi' Widodo announced on Tuesday the proposed new economy-class public transportation fares, with increases of up to 50 percent.
It is recommended that the fares for public minivans, minibuses and regular buses be increased to Rp 3,000 (30 US Cents) from Rp 2,000 while the Transjakarta bus rapid transit system, which runs on LNG, will be increased to Rp 5,000.
The city administration, however, will have to secure the City Council's approval before applying the new fares.
The increases are higher than the 30 percent increase that was previously put forward by the Jakarta Organization of Land Transportation Owners (Organda) and the 15 percent recommended by the Transportation Ministry.
'The usage of fuel in Jakarta is different from that in other regions due to the traffic gridlock. One liter of fuel is enough to travel one kilometer in other regions, while in Jakarta it is only enough for probably half of that distance,' Jokowi told reporters at City Hall.
Jokowi also cited the expected price increase in related expenses, including vehicle spare parts, lubricants and wage costs as factors that were calculated when determining the new fares.
'Even though Transjakarta buses use LNG, they will also be affected by increases in those costs,' he said.
The fares on Transjakarta have not increased since it was first launched in 2004.
The governor said that he would immediately send a letter to the Council to discuss the matter and seek approval before issuing a gubernatorial decree on the new fares.
City transportation agency head Udar Pristono said that the administration expected to gain the Council's approval by Friday.
'Before the gubernatorial decree is issued, I call on public transportation operators not to increase fares,' he said, pointing out that the agency had cracked down on at least 30 public transportation units that had increased their fares.
'The violations included putting up notices mentioning increased fares. I know that operators are well aware that the city administration has yet to announce the new official fares, so I call on them to be patient and obey the regulations while not putting pressure on their drivers,' he said.
Jokowi said that the city administration also proposed incentives for public transportation operators.
'Among the incentives we are proposing are the removal of public transportation levies,' he said.
Organda secretary for bus units Jembar Waluyo said that in reality Rp 5,300 would be a more realistic fare for bus services, however, 'the fare increase, although it still won't cover all [operational] costs, is a relief to us', he said.
As for the new fares of non-economy-class public transportation, Jokowi said that he would allow the businesses to discuss and determine their own adjustments.
'It will be determined based on the market mechanism,' he said.
Taxi company Blue Bird Group spokesman Teguh Wijayanto said that taxi operators had yet to determine the new taxi fares.
'It is being discussed by Organda's taxi unit. It has not been determined yet when a conclusion can be drawn,' he told The Jakarta Post.
To compensate the taxi drivers, Teguh said that the company would provide temporary fuel allowances, ranging from Rp 25,000 to Rp 60,000, to its drivers until the new fares were set.
Over the weekend the central government announced cuts to the fuel subsidy; raising the price of subsidized Premium gasoline to Rp 6,500 and diesel fuel to Rp 5,500, both from Rp 4,500.
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