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Islands in focus: Transportation businesses increase fares
The Yogyakarta Organization of Land Transportation Owners (Organda) has decided to increase the fares of inter-city public transportation within the province by 5 percent in accordance with the increase of the price of fuel
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he Yogyakarta Organization of Land Transportation Owners (Organda) has decided to increase the fares of inter-city public transportation within the province by 5 percent in accordance with the increase of the price of fuel.
'We had to revise the fares because of the fuel price increase. The weakening rupiah against the US dollar has also resulted in an increase of the prices of spare parts for our vehicles,' Yogyakarta Organda chairman Agus Adriyanto said Sunday.
Despite the decision, a fare increase needs approval from the provincial administration and has to be confirmed through a gubernatorial decree.
Agus said that fuel expenses made up between 40 and 45 percent of the operational expenses and is the largest expense.
Last month, the government announced another increase in the fuel price of Rp 500 (38 US cents) per liter, increasing the price of Premium to Rp 7,400 and diesel to Rp 6,900 in Java, Madura and Bali.
