ID :
29806
Wed, 11/12/2008 - 21:46
Auther :
Shortlink :
https://www.oananews.org//node/29806
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MINISTER TO DISCUSS PUBLIC TRANSPORTATION FARE CUT WITH ORGANDA
Jakarta, Nov 12 (ANTARA) - Transportation Minister Jusman Syafii Djamal said here Wednesday he would soon discuss the possibility of lowering public transportation fares with the Organization of Land Transport Owners (Organda).
"Public transportation fares, especially for economy class inter-city and inter-province passengers, will be discussed with Organda before December 1, 2008," Djamal said after the handover of 31 buses for pioneer transportation from the Transportation Ministry to state-owned bus company Perum DAMRI.
He said the discussion was necessary because Organda chairman Murphy Hutagalung had recently said public transport owners would not lower their fares.
Hutagalung said last Friday that although the government had decided to lower the subsidized premium gasoline price from Rp6,000 to Rp5,500 per liter starting December 1, 2008, Organda would not cut its public transportation fares.
"The cut by Rp500, to be effective December 1, is not significant and, therefore, we will not lower our public transportation fares," Hutagalung said.
He said public transportation fares could not be reduced because following the fuel price hikes several months ago, the prices of motor vehicle spareparts had risen sharply.
In addition, public transportation owners were also burdened by various levies, both legal and illegal.
According to Hutagalung, legal levies for retribution, overhaul costs, and vehicle taxes averaged Rp40 trillion per year while the illegal ones was costing Organda Rp18 trillion per year.
The Organda chairman said the government should have given subsidy to public transportation to make its fares cheaper.
However, the transportation minister said his office, through the land transportation directorate general, would discuss the fare cut issue with Organda, and at the same time obtain a clarification about public transport operators' cost structure per kilometer per passenger.
"The cost structure should be clear because passengers want to know it as well. Therefore, with the government planning to revise domestic fuel prices on a monthly basis, there should be transparency," Djamal said.
"Public transportation fares, especially for economy class inter-city and inter-province passengers, will be discussed with Organda before December 1, 2008," Djamal said after the handover of 31 buses for pioneer transportation from the Transportation Ministry to state-owned bus company Perum DAMRI.
He said the discussion was necessary because Organda chairman Murphy Hutagalung had recently said public transport owners would not lower their fares.
Hutagalung said last Friday that although the government had decided to lower the subsidized premium gasoline price from Rp6,000 to Rp5,500 per liter starting December 1, 2008, Organda would not cut its public transportation fares.
"The cut by Rp500, to be effective December 1, is not significant and, therefore, we will not lower our public transportation fares," Hutagalung said.
He said public transportation fares could not be reduced because following the fuel price hikes several months ago, the prices of motor vehicle spareparts had risen sharply.
In addition, public transportation owners were also burdened by various levies, both legal and illegal.
According to Hutagalung, legal levies for retribution, overhaul costs, and vehicle taxes averaged Rp40 trillion per year while the illegal ones was costing Organda Rp18 trillion per year.
The Organda chairman said the government should have given subsidy to public transportation to make its fares cheaper.
However, the transportation minister said his office, through the land transportation directorate general, would discuss the fare cut issue with Organda, and at the same time obtain a clarification about public transport operators' cost structure per kilometer per passenger.
"The cost structure should be clear because passengers want to know it as well. Therefore, with the government planning to revise domestic fuel prices on a monthly basis, there should be transparency," Djamal said.
