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Association proposes fare increase, incentives
Self help: A public minivan bears an unofficial announcement saying that its tariff has been raised by Rp 1,000 (8 US cents) following the price increases of subsidized fuel
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span class="inline inline-center">Self help: A public minivan bears an unofficial announcement saying that its tariff has been raised by Rp 1,000 (8 US cents) following the price increases of subsidized fuel. The Organization of Land Transportation Owners (Organda) has proposed that the city administration officially raise the public transportation tariff by that same amount, but no official announcement has been made. JP/Awo
Following subsidized fuel-price increases, the Organization of Land Transportation Owners (Organda) has proposed a public transportation fare adjustment as well as incentives to the city administration.
President Joko 'Jokowi' Widodo late on Monday announced the fuel-price increases, setting the new price of Premium gasoline at Rp 8,500 (70 US Cents) and Solar at Rp 7,500.
Representatives from Organda, the Jakarta Transportation Council and the Jakarta Transportation Agency met on Tuesday, agreeing to raise public bus and minivan fares by Rp 1,000.
Organda chairman Safruan Sinungan said the proposal applied to regular economy class buses and minivans. Current bus fares stand at Rp 3,000.
'We proposed an increase for regular buses, medium-sized buses and minivans. Meanwhile, the new fare for air-conditioned buses has yet to be determined,' Safruan told reporters after the meeting at the Jakarta Transportation Agency in Central Jakarta on Wednesday.
He said that the fare adjustment would cover operational costs.
Despite the ongoing process and impending approval, however, many public minivan drivers have unilaterally increased public minivan fares by Rp 1,000 as per the fuel-price hikes.
Safruan added that public transportation operators had also proposed incentives to the city administration and the central government.
'We will send letters to the Transportation Ministry and the Home Ministry, requesting additional motorized vehicle tax incentives of up to 50 percent. The incentives should apply to all regions in the country,' he said.
Azas Tigor Nainggolan of the Jakarta Transportation Council said that the operators also requested that the city administration provide leniency.
'The type of incentive that can be provided immediately is the removal of vehicle tests costs,' he said.
Should the city administration and the central government provide incentives, Azas said public transportation operators would not suffer too much every time subsidized fuel prices were increased.
'That way operators can focus on improving services,' he said.
Jakarta Transportation Agency Muhammad Akbar said the agency agreed to the fare increase proposed by Organda.
'Our calculation hovered at around Rp 1,000. We will send the proposal to the governor. After the governor approves it and issues a gubernatorial regulation on the matter, the new fare can take into effect immediately,' Akbar said.
Meanwhile, he added, the fares of non-economy class public transportation, including taxis, would be decided later.
'Each association will discuss the matter and submit a proposal to the city administration,' he said.
Taxi operator Blue Bird Group spokesman Teguh Wijayanto said that while discussions were still to take place, the company would maintain its current flat rate of Rp 7,000.
'The new fare will be discussed at the taxi association level and proposed to the governor,' he said, adding that the company would not reduce services or its number of taxis.
Meanwhile, Kopaja minibus chairman Nanang Basuki said the group proposed to increase the fare of air-conditioned Kopaja buses to Rp 7,500 from the current fare of Rp 6,000.
City-owned PT Transjakarta president director ANS Kosasih said that the fare of Transjakarta buses, which run on compressed natural gas (CNG), would stay at Rp 3,500. 'We are now focusing on expanding our fleet, not adjusting fares,' he said.
