Public transport fares in Jakarta are expected to increase by more than 30 percent as a result of the government’s planned price hike for subsidized fuel, an organization said Wednesday.
“If the government increases the price of fuel from Rp 4,500 (46 cents) per liter to Rp 6,000, public transportation fares will increase by 35 percent. We are still discussing [the matter],” Gamilang Tarigan, the deputy head of the Jakarta chapter of the Organization of Land Transportation Owners (Organda), said.
Gamilang said Organda would reveal the details of the plan after the government officially announced the price hike.
“We are still waiting for the government’s announcement, but if they really do raise the price [of fuel], it will definitely affect all aspects of the [city's public] transportation system,” he said.
Newly appointed Finance Minister Chatib Basri said that the government is planning to introduce the new fuel price in June.
The fuel price subsidy has become a major burden on state finances, but the government has said it will only make cuts if parliament approves further financial help for the poor.
Basri told the House of Representatives that the price of low octane petrol should rise some 44 percent to Rp 6,500 per liter. The price for diesel should increase Rp 1,000 to 5,500.
Additional reporting by Reuters