Cab users ask for fare cuts

Prodita Sabarini, THE JAKARTA POST,  JAKARTA | Sat, 02/14/2009 11:25 AM  

Taxi users in the capital say cab fares should drop following the recent flurry of fuel price cuts. 

Taxi user Annisa Muharami said she was upset with the unchanging taxi fares. 

“It’s really upsetting,” Annisa, who takes taxis as her means of transport, said. 

“Fuel prices have gone down so taxi fares should go down as well.” 

Umar Ali, a telecommunications consultant, said he would like to see the taxi fares in Jakarta go down after the price cuts. “I use taxis regularly to visit my clients.”

Worker Basilisa Dengen, however, was unmoved by the fuel price cut or the transportation fares.

“This change of policy has little impact. The fact is, in some areas fuel is still scarce and people have to buy fuel at a higher price than normal. Nationally, there’s no big impact,” she said. 

Last month, following the fuel price cuts, Jakarta City Council approved of a 20 percent, or Rp 500 (4 US cents), reduction in public transportation fares, for minivan and regular buses fares.  

Taxis fares, however, have not changed despite the lower fuel prices. As of January, subsidized Premium and diesel fuel were at Rp 4,500 (40 US cents), down from Rp 6,000 in November. 

Currently, taxis apply one of two rates — “lower tariff” or “higher tariff”. Low-rate taxis charge a flagfall of Rp 5,000 and Rp 2,500 per kilometer, while other taxis charge Rp 6,000 and Rp 3,000 per kilometer. 

The Organization of Land Transportations Owners (Organda) said taxi fares would remain the same. 

“We have met with all our members [taxi operators] and decided not to cut taxi fares,” Organda head Herry Rotti told the Post recently. 

Taxi operators echoed Organda’s call, saying taxi businesses relied more on giving high-quality service than “selling gasoline”. 

Teguh Wijayanto, spokesman of taxi giant Blue Bird Group, said the company would not cut its rate until it saw a significant impact from the fuel price cut.  

“Fuel is only 20 percent of the company’s operational costs. Some other expenses, like spare parts and maintenance, continue to rise.” 

“We haven’t cut our rate because we still can’t predict price fluctuations on many other operational components,” he said. 

Teguh said the company, currently controlling about 10,000 taxis in Greater Jakarta, preferred to improve services than reduce its fares. 

Smaller taxi operator Taxiku shared a similar view. 

The company’s operational director Priyatmadi said the fuel price cut had not impact on taxi operators. 

“The cut is still too small for small player like us.” 

Taxiku, running about 800 taxis in Greater Jakarta, currently charges its users a lower rate.

“Moreover, passengers choose taxis they trust, no matter what the fare,” Priyatmadi said.

“That’s why, improving service is all we can do right now.” 

The current taxi rates were decided by Organda in June last year after the government increased the price of Premium gasoline from Rp 4,500 to Rp 6,000. 

Despite her disappointment, Annisa said she would still use taxis to go about the city.

“I still need them.” (hwa)

Related Article:

City fines drivers who deny public fare cuts