REPUBLIKA.CO.ID, JAKARTA -- Land Transportation Organizations in several areas of Indonesia have decided to increase fares by 30 percent, following the hike in the price of subsidized fuels on Monday.
The organization in Kolaka district of Southeast Sulawesi province has affirmed that fares will be hiked by 30 percent.
"We have decided to increase the fares, particularly for city public transportation, while waiting for the regulation from the local administration," the Chairman of the Kolaka Land Transportation Organization, Akring Johar, said here on Tuesday (18/11).
Johar added that the high tariff of city transportation would affect people who use local transportation, including students and other commuters.
The chairman expressed hope that the government has solutions to handle the cost vehicle parts that will rise following the fuel cost hike. This affects their revenue as well.
Furthermore, a similar organization in Padang city of West Sumatra province also decided to increase fares by 30 percent, or by Rp1,000.
The chairman of the organization, Yul Akhyari, noted that the total increase in the fares was same as those of the last fuel hike in June 2013.
Akhyari pointed out that the organization was forced to implement the hike as public transportation did not have any subsidy allocations from the government.
The organization, he said, implemented the new transportation tariff on Tuesday after President Joko Widodo announced the raised prices of subsidized fuels.
In addition, the Land Transportation Organization in West Kalimantan also noted that the fuel price hike threatened the presence of public transportation in the province.
The chairman of the organization, Adhie Rumbee, explained that the lack of infrastructure in the province forced people to choose other modes of transport. As a result, commuters opting to travel by public transportation would decline and, in turn, reduce income from their business.
Rumbee delivered several proposals to assist the business of public transportation before the government decided to increase the cost of subsidized fuels.
"The administration can, at least, eliminate taxes for public transportation and vehicle test costs, and give the organization subsidy funds to help restore the vehicles," Rumbee remarked.
Also, the organization in West Kalimantan will follow the central organization's command to temporarily stop the operation of vehicles on Wednesday (November 19).
President Joko Widodo decided to increase the price of subsidized fuel, including premium fuel, from Rp6.5 thousand to Rp8.5 thousand per liter and that of diesel oil from Rp5.5 thousand to Rp7.5 thousand per liter.
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