Yuli Tri Suwarni and Ridwan Max Sijabat, Bandung/Jakarta – Government underfunding is to blame for the high number of fatal accidents on the state rail network, PT Kereta Api's (PT KA) management and workers say.
PT KA president director Roni Wahyudi said the state railway company faced serious financial troubles because the government was not honoring a pledge to provide safe and cheap public transportation to the public.
"Management cannot improve labor conditions in the company and cover the rising cost of infrastructure maintenance because the government is also having financial difficulties," Roni said at a meeting between the company's management and workers in Bandung during the weekend.
He said the funding shortfall meant the company could not afford to properly maintain its railway network or communications systems, which were in disrepair. Defects in these systems contributed significantly to the rate of accidents, he said.
"As a result, the company has never recorded a profit because its monthly revenues are used up to cover labor and operation costs," he said.
Roni said the government had yet to pay PT KA Rp 1.3 trillion (US$140 million) in public service obligations and infrastructure maintenance operations between 2000 and 2004. The government has also not paid Rp 2.6 trillion into the pension scheme for PT KA's more than 29,000 workers.
The government suspended payments to the pension scheme in 1991, when the company's status was changed from non-profit state enterprise to limited liability company.
The government's failure to pay PT KA workers pension had triggered the dispute between employees and the government. Under the Indonesian laws, only civil servants are entitled to state pension money.
"The management has allocated Rp 664 billion to help the government fulfill its obligation to the workers' pension program," Roni said.
Separately, company workers union chairman Iwan Setiawan said the union would meet government officials soon to discuss the company's financial problems.
"If the government cannot pay its obligations, then PT KA should be liquidated, or it should be allowed to adjust its ticket fares and utilize some of its dormant assets such as land and buildings to help increase monthly revenue," he told The Jakarta Post on Monday.
Iwan said the government had implemented only one point in a three-point plan it agreed to in a meeting last year to improve the company's performance.
"It has reshuffled the management but has yet to settle the pension benefit issue and renovate old buildings and old parts of the railway network." Hanafi Rustandi, representative of the International Transport Workers Federation, said PT KA would go bankrupt or more train accidents would occur unless the government took measures to settle the firm's finances.
"The high number of train accidents shows the government has failed to settle the company's internal problems and to improve railway services to the public," he said.
Train accidents since 2002
No. Year Accident Fatality
- 2002 155 40
- 2003 109 33
- 2004 127 35
- 2005 98 64
- 2006 12 20 (January to April)