Indonesia's largest taxi operator, Blue Bird Group, raised the fares of its taxis operating in Jakarta; Bogor, Depok and Bekasi, West Java; and Tangerang, Banten, as of Sunday.
Blue Bird Group public relation division head Teguh Wijayanto said that the management had decided to raise the initial fare to Rp 7,000 ( US$0.64 ), up from Rp 6,000. The decision had been supported by the Land Transportation Owners Organization ( Organda ).
'The rate per kilometer has been raised to Rp 3,600 from the previous Rp 3,000. The waiting time fee is Rp 42,000 per hour,' Teguh said, as quoted by tempo.co. He said Blue Bird hiked fares as a result of the government's decision to cut the fuel subsidy, which drove up gasoline prices from Rp 4,500 per liter to Rp 6,500.
He added that his company had already informed its drivers and costumers about the price increase starting a month ago. 'If the fare hike causes a decrease in our taxi passengers, we will provide additional financial support to our drivers so they won't suffer from the decline,' he said.
Other taxi operators were expected to raise their taxi fares in the immediate future.