The Jakarta Post, Jakarta | Sat, 12/20/2008 9:07 AM
The Organization of Land Transportation Owners (Organda) remains adamant it will not reduce public transportation fares in Jakarta after the government slashed fuel prices twice this month.
On Friday, Eddy Toet Hendratno, head of the Jakarta Transportation Council, said operators were still mulling a possible cut but had not decided yet.
“We have also not given any recommendations on this,” Eddy told The Jakarta Post.
“The fuel price factor accounts for only 34 percent of operational expenditure. That is why the companies are still debating reducing fares.”
Rudy Thehamihardja from Organda insisted fares would not be cut just yet because the group was still reeling from a spate of recent expenditures.
“We’ve had many expenses, such as buying spare parts, paying taxes and even paying drivers’ salaries. The decrease in the fuel price only solves one of our problems,” he said.
At the beginning of December, the government reduced the price of subsidized Premium gasoline to Rp 5,500 from the initial Rp 6,000, but did not lower the price of subsidized diesel.
On Dec. 15, the government again lowered the price of Premium, this time to Rp 5,000, and also diesel, from Rp 5,500 to Rp 4,800.
On Thursday, Organda said it would cut inner-city public transportation fares by Rp 200 (2 US cents), or about 5 percent, following the latest fuel price cuts.
Eddy pointed out fuel was only one of several expenses incurred by public transportation operators, along with spare part costs, fees and taxes, and even protection money for street thugs.
“We are still discussing the matter and have not decided yet,” he said with a shrug.
Eddy added he would recommend the owners reduce fares only if the government made yet another cut in fuel prices.
“We hope fuel will be even cheaper, so we can do something to help people here,” he said.
Public transportation drivers are also undecided on whether fares should be cut.
“To be honest, we lose money every day,” Diman, who plies the Tanah Abang-Kemayoran route, told the Post.
“The government only cut fuel prices by a total of Rp 1,000, but we still have to pay the same vehicle rental fees to the owners.”
Eddy concurred, saying this often led conductors and drivers to charge commuters higher fares than those set by government. “This is probably because the drivers have to pay rental fees to the owners. The decrease in the fuel price doesn’t affect rental fees.”
The insistence of public transportation owners not to reduce fares has drawn many complaints.
Lisa, a university student, said she was disappointed that fares had not gone down along with fuel prices.
“I’m surprised everything’s still the same,” she said. (naf)
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