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Home  >>   Daily News  >>   Indonesia  >>Transport  >> Govt reduces transportation fares after fuel-price
NEW UPDATES Asean Affairs    21 January 2015  



Govt reduces transportation fares after fuel-price

Indonesia: With a fuel-price decrease coming into effect as of Monday, the Transportation Ministry has said that fares for land transportation, including trains, will also get a 5-percent reduction.

The fare cut will also apply to ferries, where passengers will enjoy a 4-percent reduction.

The Transportation Ministry’s director general for land transportation, Djoko Sasono, said the government had taken the public’s purchasing power into consideration when determining the price cut, without putting aside the aspects of safety and service.

“Amid the decrease in gasoline prices, the government has decided to reduce public land transportation fares by 5 percent from the existing fares,” Djoko said Monday.

The new fares follow the fuel-price decrease that was announced last Friday by President Joko “Jokowi” Widodo. He said the price of Premium gasoline was to be lowered to Rp 6,600 (52 US cents) per liter from Rp 7,600, effective Monday. Meanwhile, diesel was to be cut to Rp 6,400 from Rp 7,250.

The government is now considering the possibility of setting a floor price for gasoline, meaning the government would be unlikely to make further price cuts even if the global price of oil continues to decline.

In addition, Djoko said the ministry had sent letters informing governors, regents and mayors across the country to implement the new fares on various modes of public transportation including intracity transportation, intercity intraprovincial (AKDP) transportation and interprovincial (AKAP) transportation.

According to him, the ministry talked to the Organization of Land Transportation Owners (Organda) and The Indonesian Consumers Foundation (YLKI) in determining the fare adjustment.

Organda secretary-general Andriansyah, meanwhile, said that the decrease in fuel prices would help public-transportation operators by lessening their burdens amid rising operational costs on the back of the depreciation of the rupiah against the US dollar, since most automotive spare parts were imported.

“However, we have suggested that the government not make fare adjustments every time the world crude oil price changes. The fares should only be evaluated every time we see at least a 10-percent adjustment in the price of oil,” he said.

According to Andriansyah, fare changes would not only cost operators economically, but it also takes time for the organization to inform its members of the new fares.

The ministry’s director general for railway affairs, Hermanto Dwiatmoko, said the fare adjustment for railway transportation would only be implemented for non-subsidized trains.

As for train services that receive public service obligation (PSO) funding, passenger fares would not be decreased; the government would instead reduce the PSO allocation, Hermanto said. - See more at: http://www.thejakartapost.com/news/2015/01/20/govt-reduces-transportation-fares-after-fuel-price-drop.html#sthash.p3bH3b8I.dpuf


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