Ministry Of Transportation: Private Ogah Owns A Pioneer Bus Because Of His Small Profession

Bus Illustration (Photo: Doc. Antara)

JAKARTA - Private companies are considered by no one to want to become pioneer transportation operators in remote areas of Indonesia.

Director of Road Transportation of the Directorate General (Ditjen) of Land Transportation of the Ministry of Transportation Suharto revealed that the reason why private companies always think pioneer services will cost a lot of money with minimal receipts. So, in terms of business, this service tends to suffer losses.

Therefore, continued Suharto, many private companies are reluctant to enter pioneering transportation services.

"If in terms of the transportation business like this, there have been many disadvantages, who wants to," he said at the discussion of Forwahub at the Ministry of Transportation, Jakarta, Tuesday, February 7.

In fact, continued Suharto, the government has set a profit of 10 percent in the structure of the Vehicle Operational Cost (BOK) for private parties interested in working on pioneering transportation services.

"In our bureaucracy, there are 10 percent of profits, many have also been offered to the private sector. In the end, what happened was this assignment to Damri as a BUMN," he said.

Suharto said private companies prefer to build transportation services in urban areas and surrounding areas. This is because the market share and demand for services in urban areas are clearer.

"They (private) are better off operating in the city center or within the city where the demand ponthesis is clear and definite," he said.

Meanwhile, the Director of River, Lake and Crossing Transportation of the Directorate General of Land Transportation of the Ministry of Transportation, Junaidi said that in the crossing sector there was already 5 percent of the private sector that contributed to pioneer crossing transportation.

Junaidi revealed that the involvement of BUMN was the dominant, which was 82 percent, followed by BUMD as much as 13 percent.

"We will continue to encourage the private sector to transport pioneer crossings," said Junaidi.