The Land Transportation Owners Organization (Organda) has urged Jakarta taxi companies still using old fares to implement new rates next month at the latest.
"They only have until the end of this month to implement the fares. Organda will warn noncompliant companies. They could also face punishment from the city transportation agency," Organda head Herry Rotty told The Jakarta Post on Sunday.
"We have given them a few months to adjust their meters after the city administration approved the new fares in June. We now need to ensure the implementation of the rates," he said.
In June, the administration of Governor Fauzi Bowo approved a 20 percent increase in taxi fares proposed by Organda to adjust for fuel price increases.
The new upper limit fares are Rp 6,000 (64 US cents) for flag fall, Rp 3,000 per kilometer and Rp 30,000 waiting fee per hour.
The charges are up from Rp 5,000 for flag fall, Rp 2,500 per kilometer and Rp 25,000 waiting fee per hour.
Organda also set up lower limit fares: Rp 5,000 flag fall, Rp 2,500 per kilometer and Rp 25,000 hourly waiting fee, up from Rp 4,000, Rp 1,800 and Rp 18,000 respectively.
Many taxi companies that charge a flag fall of Rp 4,000 have delayed the introduction of the new fares, saying they need more time to convince drivers to accept them.
Transportation expert Darmaningtyas said the new fares were fair enough for both taxi companies and passengers.
"If they keep using fares of Rp 4,000 for flag fall, it will be hard for the drivers to earn a living, since they have to pay for fuel and contribute to their companies," he said.
He said the competition among taxi companies in the city was high.
"There is competition between established companies and semi-established ones. Some people prefer to take the established taxi, even though it charges a higher fare. Others will choose the semi-established one that offers a cheaper fare."
Although competition is tight, he said, taxis still could maintain their customers, as people with middle and upper-level incomes would keep taking taxis if they did not use cars.
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