TEMPO.CO, Jakarta – Andriansyah, secretary general of the Indonesian Land Transportation Organization (Organda), said that public transportation fare will increase by 42 percent if subsidized fuel prices are raised by Rp3,000 per liter.
"If we don't [raise the fare], we could be out of business," he said on Thursday, October 30.
To sustain the business, Andriansyah has requested that public transportation be allotted subsidized fuel quota to curb down the fare. Otherwise, they could lose customers—and eventually cease operation—due to the expensive tariffs.
He said that Organda has submitted a written proposal to the Finance Ministry and the Transportation Ministry, asking for subsidized fuel allocation. Two ways to do this are by utilizing fuel control card and providing subsidized fuel in gas stations for public vehicles only.
"We have conducted a trial in Batam. Now we just have to wait if the government gives it a go," he said.
Finance Minister Bambang Brodjonegoro earlier this week said that government will increase subsidized fuel prices on January 1. However, he added that the government is now focusing on social aid programs to protect the people who would be affected the most by the hike. Until the end of 2014, the government has budgeted Rp5 trillion to compensate for the planned hike.