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Traffic taking toll on Jakarta taxi operators

Source
Jakarta Post - July 6, 2011

Jakarta – Gridlock, which has become synonymous with life in Jakarta, has not only brought traffic to a standstill, but also taxi businesses, operators say.

Several companies have reported seeing their profits dwindle because of an increase in expenses and reduction in revenue resulting from the choking daily congestion.

PT Express Transindo Utama (Express Group) president director Daniel Podiman says his company's net profits had fallen "largely because of a whopping 30 percent increase in maintenance costs and spare parts."

Congestion makes cars consume more fuel, as well as shortening the lifespan of autoparts, he said. "Normally, a cab only consumes 20 liters of fuel per day, but traffic jams can make it [consume] 30 liters," Daniel said Wednesday as quoted by kontan.co.id.

Currently, the most taxi driver earns is around Rp 400,000 per day from 13 passenger fares, adding that there was a time when taxi driver could earn Rp 600,000 from 15 passenger fares.

PT Blue Bird Group spokesman Teguh Wijayanto shared similar views, adding that the increasing operating costs were seen in oil use. "Because of the the traffic jams, we now we have to change vehicles' oil much sooner, before cars have done 4,000 kilometers," Teguh said, adding that jams also shortened the lifetime of brakes and clutches.

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