May 22, 2008

Transjakarta urged to fix management, efficiency

By Tifa Asrianti

The city council and the city transportation council demanded Wednesday busway operator Transjakarta answer directly to the governor instead of the transportation agency.

Nurmansyah Lubis, a city councilor, said it would make the decision making process concerning the Mass Rapid Transit system more efficient.

Transjakarta currently answers to the city's transportation agency.

Nurmansyah said Transjakarta should be headed by an expert in public transportation, not a civil servant.

"To place Transjakarta directly under the governor, we need a gubernatorial decree," Nurmansyah said.

Soetanto Soehondo, a member of the city's transportation council, agreed, saying Transjakarta should ideally work with and answer directly to the governor.

"Transjakarta as a pilot project must succeed because it represents the beginning of a strong public transportation development in Jakarta. Therefore, the governor should pay this project special attention so all Transjakarta operations remain under control," Soetanto said.

During a plenary session at the city council Wednesday, the council's deputy spokesperson, Ilal Ferhard, demanded Transjakarta management undergo a full evaluation. The call came after several problems caused by management issues were found.

Ilal said Transjakarta did not have adequate procedures in place to deal with all technical aspects and business administration. He said the city administration's continual subsidization of the busway needed to be addressed.

"In 2007, the busway received 63,446,336 fares of Rp 3,500 each, even though the real fare should have been Rp 5,245. That means the subsidy reached Rp 1,745 per person," he said.

He said Transjakarta received a subsidy of Rp 153 billion last year on top of its net income of Rp 168 billion.

"Of that figure, it spent Rp 263 billion on bus operations. Transjakarta must carry out a study on operational costs per kilometer so we can establish an effective payment system with private consortia supplying the buses," he said, as quoted by newsportal Beritajakarta.com.

Ilal said Transjakarta always claimed to be in the red and needed to reduce revenue leakages.

Soetanto said Transjakarta could generate more income from its seven existing corridors by improving feeder services, a distance-based fare system and its advertising. He also said the company could be more efficient in operations, management and on bus-route planning.

Two consortia supplying buses, the city administration and Transjakarta are in negotiations over a set of new lower operational rates to be paid to the consortia.

The new lower rates came about after the administration held an open tender for bus suppliers, as mandated by a 2006 presidential regulation on service and goods procurement.

All the tender winners offered lower rates than the existing consortia, PT Jakarta Trans Metropolitan (JTM) and PT Jakarta Mega Trans (JMT).

Primajasa, for example, offered a rate of Rp 9,536 (US$1) for every kilometer its buses traveled on Corridor 4 (Pulo Gadung, East Jakarta to Dukuh Atas, Central Jakarta).

In contrast, JTM, which is responsible for Corridor 4, among others, charges Transjakarta Rp 12,885 per kilometer traveled. (The Jakarta Post)

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January 19, 2008

Busway in the clear, deputy governor says

Mustaqim Adamrah, The Jakarta Post, Jakarta

Jakarta's Deputy Governor Prijanto said Friday an internal investigation into mark up allegations against busway operator Transjakarta uncovered no irregularities.

The allegations emerged early this month after bus suppliers PT Primajasa and PT Lorena won public tenders to supply buses to the company, offering significantly lower operational prices than existing suppliers.

The difference between the prices quoted by PT Primajasa and PT Lorena and the existing suppliers sparked allegations about price irregularities.

Investigators concluded that the newer bus suppliers would use less expensive buses, meaning the mark up suspicions were inaccurate, Prijanto said.

"The winning companies (Primajasa and Lorena) do not plan to import their buses, whereas the existing bus suppliers imported theirs. As a result, Primajasa and Lorena will spend less money," Prijanto told reporters at City Hall.

"The new buses will also travel longer distances than those already operating," he added.

He said the fact the new operators would cover more ground than the existing operators meant each company would be paid a similar amount the end of the day.

Transjakarta, using city budget money, pays bus suppliers for their services on a per-kilometer basis.

Prijanto said the final calculated rate paid to bus suppliers took into consideration bus prices and interest rates.

Last year Transjakarta used almost 70 percent of its Rp 400 billion in operational costs paying bus suppliers.

The winning bidders will supply buses for corridors IV to VII, which have all been plagued with overcrowding problems since last year.

Prijanto said the relatively low operational prices offered by the new suppliers also reflected the fact they would be allowed to keep their busses after their contracts expired, while the existing suppliers have agreed to hand over their busses to the administration.

Corridor Route Primajasa/ Existing

Lorena Rates
IV Pulo Gadung, E. Jakarta - Rp 9,536 Rp 12,885

Dukuh Atas, C. Jakarta
V Kampung Melayu, E. Jakarta - Rp 16,661 Rp 22,597

Ancol, N. Jakarta
VI Ragunan, S. Jakarta - Rp 9,371 Rp 12,885

Kuningan, S. Jakarta
VII Kampung Rambutan, E. Jakarta - Rp 9,443 Rp 12,885

Kampung Melayu, E. Jakarta

 

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