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Govt allows basic transportation cost to rise by 15%
uusjio | May 27, 2008 at 05:37 pmby
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But in reality, bus and minibus owners or drivers in many parts of the country had already reacted to the fuel oil price hikes announced on Friday (May 25) by increasing their tariffs or suspending operations pending an announcement on new fares by local authorities.
Transportation Minister Jusman Syafii Djamal has written to all governors in the country notifying them about the 15-percent limit on transportation fare raises.
"This should be used as a reference for raising public transportation fares so that any increase in intercity bus economy-class fares or city and rural transportation fares will not be excessive," the minister said in his letter No.AJ.302/1/1/Phb-2008 sent to the governors.
In the government`s calculations, as a result of the fuel oil price hikes, the basic cost for the operation of intercity buses increased by about 15 percent.
Based on its calculations, the basic costs for region I, which covers Sumatra, Java, Bali and Nusa Tenggara, increased from Rp100.26 per kilometer per passenger to Rp115, and for region II which covers, Kalimantan and Sulawesi) increased from Rp110 per kilometer per passenger to Rpp126.5.
"With such an increase in transportation operating cost, the rate for intercity bus economy-class fare increase should be at a maximum of 15 percent. This means that in region I, the upper limit fares are set at Rp150 per passenger per kilometer and the lower limit was set at Rp92 per passenger per kilometer, while in region II, the upper limit was set at Rp165 per passenger per kilometer and the lower limit was set at Rp101 per passenger per kilometer," the minister said.
In the meantime, it was reported from ...