ORGANDA NOT TO LOWER TRANSPORTATION FARES

Jakarta, Nov 7 (ANTARA) - Although the government has decided to lower the subsidized premium gasoline price from Rp6,000 to Rp5,500 per liter, the Organization of Land Transportation Owners (Organda) will not cut its public transportation fares, a spokesman said.

"The cut by Rp500, to be effective December 1, is not significant and, therefore, we will not lower our public transportation fares," Organda chairman Murphy Hutagalung said here Friday.
He said public transportation fares could not be reduced because following the fuel price hikes several months ago, the prices of motor vehicle spare parts rose sharply.
In addition, public transportation owners were also burdened by various levies, both legal and illegal.
According to Hutagalung, legal levies for retribution, overhaul costs, and vehicle taxes averaged Rp40 trillion per year while the illegal ones was costing Organda Rp18 trillion per year.
The Organda chairman said the government should have given subsidy to public transportation to make its fares cheaper.
Finance Minister Sri Mulyani Indrawati announced on Thursday evening that the government would cut the price of subsidized Premium gasoline by Rp500 to bring it down from Rp6,000 to Rp5,500 per liter.
But senior energy and mineral resources ministry official Evita Legowo said the reduction would be based on the availability of budget funds.
"The remainder of this year's budget funds is only enough to lower the price of subsidized premium gasoline beginning on December 1, 2008," said Legowo who is director general for oil and gas affairs.
She said the government would make adjust subsidized fuel oil prices every month based on developments involving the world crude oil price.