The City Council has approved an average increase of 26 percent for public transportation fares in Jakarta.

The secretary of Commission B on the economy, Nurmansjah Lubis, said Wednesday commission members had agreed to round up the draft fares proposed by the administration in multiples of Rp 500 (5 US cents), calling the decision a "win-win solution".

"We have taken into account fare proposals from the city's transportation agency, the City Transportation Council and Organda (Land transportation Owners Organization) before making the decision," he said at the council after a meeting that determined the fares.

"We are rounding up the governor's (Fauzi Bowo) fare proposals for simplicity, although the new fares might later be applied differently," he said.

However, councilors did not agree to increasing the fares to the extent Organda had proposed, which were "too high", he said.

In a letter dated June 3, the administration proposed 17-20 percent fare increases for large buses without air-conditioning, medium buses and public minivans, as recommended by the transportation council.

The transportation agency earlier proposed 15-20 percent increases in public transportation fares.

Jakarta's Organda chairman, Herry Rotty, previously hoped for 50-100 percent increases in public transportation fares to enable public vehicle businesses to cope with fuel price increases. He said increased auto part prices would affect operations.

Herry suggested the administration lower levies imposed on public transportation.

In response to the City Council's decision, Herry said he was disappointed.

"The City Council shouldn't have applied the same fares to large and medium buses," he said.

Governor Fauzi said he would not provide any incentives for public transportation businesses and that they would have to adhere to the administration's and council's joint decision.

"The decision has been made in consideration of all stakeholders, not only of commuters, but also public vehicle entrepreneurs," he said at City Hall.

"We'll apply the new fares soon after the City Council sends us its approval letter. Public vehicle drivers must comply with our decision."

Nurmansjah said the City Council would send the approved fares back to the governor later on the day.

For air-conditioned buses and taxis, he said, new fares were expected to float according to supply and demand. [The Jakarta Post]