Transportation Fares Must Go Down: President

Jakarta (Antara Bali) - President Joko Widodo (Jokowi) has asked for the lowering of public transportation fares following the cuts in fuel oil prices.

"It should not happen that public transportation fares, which rise as a result of an increase in the fuel oil prices, should not go down when these fuel prices are lowered," President Jokowi said while opening the cabinet limited meeting discussing fuel price adjustment (cuts) here on Wednesday.

The meeting decided to lower prices of Premium gasoline and subsidized diesel fuel by Rp500 per liter, effective as of April 1, 2016.

President Jokowi instructed Transportation Minister Ignasius Jonan to ensure that public transportation tariffs are lowered after fuel oil prices are cut.

"This evening, we will discuss the issue of slashing fuel oil prices. I hope that once the prices are cut, the transportation minister would ensure the lowering of transportation fares," said President Jokowi while opening the limited meeting.

After a brief address at the meeting, the president asked Energy and Mineral Resources Minister Sudirman Said to deliver his report on the price of fuel oils.

Transportation Minister Ignasius Jonan said on Wednesday that his ministry will write to the regional governments asking them to lower transportation fares following the reduction in fuel oil prices.

Jonan said the cut in transportation fares could be three percent, depending on the type of fuels they consume. This will cover ferry services, trains, inter-city or inter-provincial buses and city transportation vehicles.

"We will formulate this soon and it will be regulated through a ministerial decree," Minister Jonan said after attending a limited cabinet meeting on adjustment of fuel oil prices in line with a decline in the world crude price.

However, Minister Jonan said public transportation fare should not be reduced automatically with the cut in fuel oil prices.

The meeting was also attended by Finance Minister Bambang Brodjonegoro, Maritime Affairs Coordinating Minister Rizal Ramli, Pertamina President Director Dwi Sutjipto, Head of the Capital Investment Coordinating Board (BKPM) Hanky Sibarani, Minister & State Secretary Pratikno, Cabinet Secretary Pramono Anung, National Development Planning Minister Sofyan Djalil, Chief Economic Minister Darmin Nasution, Communications and  Informatics Minister Rudiantara and Marine Affairs and Fisheries Minister Susi Pudjiastuti. (WDY)