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Public transport action firms to stage national strike
Salesman gimmick: To lure customers to buy more, this roadside fuel trader in Telanaipura, Jambi, offers a discount
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span class="inline inline-center">Salesman gimmick: To lure customers to buy more, this roadside fuel trader in Telanaipura, Jambi, offers a discount. He quotes Rp 10,000 per liter of gasoline but customers who buy 2 liters will have to pay only Rp 19,000. Antara/Wahdi Septiawan
The government's decision to increase fuel prices has hit land transport firms, with the Organization of Land Transportation Owners (Organda) calling on all of its members to cease operations on Wednesday.
Organda chairwoman Eka Sari Lorena Surbakti said the government had not taken the country's public transport business into consideration - given that its load factor had already declined over the past few years ' when deciding to increase the price of Premium gasoline from Rp 6,500 (53 US cents) per liter to Rp 8,500, and diesel from
Rp 5,500 to Rp 7,500 per liter.
Data from Organda shows that the country's public transport load factor is only around 45 percent this year, decreased from around 60 percent last year.
Eka said it was feared that a tariff increase following the fuel price increases would further shrink the public transport load factor.
'We've asked the government to provide incentives to help revitalize public transport,' she said on Tuesday. 'However, up until now, we have not seen the government's commitment to supporting the public transport sector,' she continued.
She said the strike was part of the organization's focus on the country's low-income families that were dependant on the sector.
Separately, Transportation Minister Ignasius Jonan said in a press conference that the government had decided to stipulate a maximum 10 percent increase in tariff adjustments for public transport to help operators cope with increasing operational costs.
'In determining the percentage, we considered both public transport operators and public purchasing power,' the minister said.
'By staging a strike, instead of creating a problem for the government, [Organda] is abandoning the public service. [They] should be wiser,' he said.
Meanwhile, Organda secretary general Andriansyah said a 10 percent increase in the tariff stipulated by the ministry would not be able to cover the transport sector's rising operational costs.
'To prevent transport business operators from going bankrupt as well as to maintain the service, the tariff increase that will be applied is 30 percent,' Andriansyah told The Jakarta Post.
Acting Jakarta governor Basuki 'Ahok' Tjahaja Purnama said the city would not increase Transjakarta bus fares, while the fares of other public transport would be adjusted by Organda.
Blue Bird Group spokesman Teguh Wijayanto also said that the group had not formulated a plan to increase the tariff, adding that taxi operators would follow the direction of the taxi unit at Organda that would firstly discuss the impact of the fuel-price increases.
'Fuel costs contribute to 20 percent of our operational costs,' Teguh said. 'However, up until now we haven't decided to increase the tariff and will remain focused on accelerating our service to the customer.'
Apart from the land transport sector, it is feared that fuel price increases could affect the country's airline sector.
National flag carrier Garuda Indonesia spokesperson Ikhsan Rosan said the fuel-price increases would lead to higher inflation, which would affect the public's purchasing power and reduce the public's appetite to travel.
'People will start to shift their priorities and be more selective in choosing their journeys. This will affect the company in the short run,' Ikhsan told the Post.
'However, the government has pledged to reallocate the budget for infrastructure projects and, with an improvement in infrastructure, it will eventually lead to higher economic growth and an increase in people's purchasing power,' he continued.
