BY Andi Abdussalam
Jakarta, May 29 (ANTARA) - The government, operators and users of public transportation have been playing a three-sided `tug of war' on tariffs over the past few days following last week's fuel oil price hikes.
While their representatives are still holding talks with the government, public transportation drivers on the ground are unilaterally raising transport fare rates they would ask passengers, often with exchange of harsh arguments, to pay for.
Metromini and mikrolet mini buses in Jakarta, for example, have raised their fares by Rp500 per passenger while air-conditioned buses increased their tariff by Rp1,000 per passenger.
Some drivers even went on strike. Drivers of urban public transportation vehicles (angkot) went on strike in three West Jakarta locations on Wednesday to urge the government to set new fares in adjustment to the newly raised fuel oil prices.
At the same time, the Organization of Public Transportation Owners (Organda) was holding talks with the government, demanding a government subsidy or a fare increase by 30 percent.
Previously, the organization threatened to unilaterally raise public transportation fares by 40 to 50 percent, or call a nation-wide strike if in a week's time the government did not set a fair rate.
"We are resolved to stage a nation-wide strike. We will do it so that passengers no longer need to pay the arbitrarily inflated fares as they do now. The public was already carrying a heavy economic burden so we should not add to their hardships," Organda Chairman Murphy Hutagalung said on Monday.
Besides asking for a subsidy or an increase of 30 percent fare, Organda in a meeting with Vice President Jusuf Kalla on Wednesday, also asked the government to abolish all forms of illegal levies and burdening regulations as well as to improve infrastructure and eliminate illegal public transport operations.
"The five-point demand was formulated during a plenary meeting held by Organda on May 25, 2008. The vice president has received our proposal and he will discuss it with the relevant agencies," said Murphy.
He said that Organda had proposed a subsidy which is equal to the amount of the difference between the old and new fuel oil price hikes. The requested subsidy for premium gasoline, for example, is Rp1,500 which is the difference between its old price of Rp4,500 and its new one Rp6,000.
The government on Friday increased the price of premium gasoline from Rp4,500 to Rp6,000 per liter, diesel oil from Rp4,300 to Rp5,500 and kerosene from Rp2,000 to Rp2,500. The average increase was 28.7 percent.
"So, the amount of subsidy we are asking for depends on the types of fuel oils that have had their prices raised," Murphy said.
In the meantime, the government has yet to decide whether or not it would provide subsidy to public transportation.
"We have discussed the subsidy problem at the vice presidential office before the government announced fuel price hikes. But no decision has been made because we still need to see its technical aspects," Transportation Minister Jusman Syafii Djamal said.
On Wednesday, the minister attended a meeting between the vice president and the Organda executives to discuss the subsidy and fare problems. Minister Jusman Syafii Djalal said one of the technical aspects was to grant subsidy incorporated with the use of smart cards.
The government is launching a try-out program in certain cities to restrict fuel oil consumption where consumers have to use smart cards when refilling at fuel oil stations.
"We are still considering whether public transportation operators would be provided with subsidy by using smart cards," the minister said after attending the meeting.
Vice President Jusuf Kalla is, however, still considering the Organda's proposal for subsidy. The vice president said previously that public transportation operators had actually been enjoying subsidies.
He referred to certain types of fuel oils which were still subsidized. "There is fuel oil which the government is still providing a 50 percent subsidy," Jusuf Kalla said.
The vice president considered that the increased rate by 30 percent as proposed by Organda was too high, saying fuel oil cost accounted for only 16 percent of all the operation costs of public transportations vehicles.
"So, if transportation fares are to be raised, the appropriate increase is about five percent. For this the government allows it to be increased by 10 percent," the vice president said.
Organda's Jakarta branch had earlier demanded that the Jakarta city administration provide fuel oil subsidy for public transport, reduce the taxes and abolish various other levies transport operators had to pay.
"We want an increase of 40 percent to 50 percent in the tariffs, unless operators of public transportation vehicles are allowed to buy fuel oils at the old (subsidized) price," chairman of Organda's Jakarta branch, Harry Rotty said.
In response to Organda's threat, the government called on public transportation operators not to unilaterally raise their tariffs.
"We have to be aware of the fact that the people cannot afford a high increase in public transportation fares and that high tranport fares will fuel inflation," Minister Jusman Syafii Djamal told a transportation workshop in Aceh on Thursday. (T.A014/A/HAJM/A/S012) 19:55/)
(T.A014/A/A014/A/S012) 29-05-2008 19:57:07
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