Jakarta govt continues discussing plan to buy 4,000 buses

Although 15 imported Transjakarta buses, including 10 articulated buses, are found to have been damaged and suffering from corrosion problems, the Jakarta government will continue discussing plans to import 4,000 more buses, worth Rp5 trillion.

"Though we have a problem, we will continue our plan to purchase buses, because it has been included in the Jakarta regional government budget for 2014 and has been approved by the Jakarta Regional Legislative Assembly (DPRD)," Jakarta Governor Joko Widodo, better known as Jokowi, stated here on Thursday.

The buses to be bought include 1,000 two-section Transjakarta buses and 3,000 others buses. 

According to GATRAnews online media, the Jakarta governor hoped industries at home would be able to meet the needs of bus operators for manufacturing buses to spur domestic industries. 

Jokowi said he would not withdraw the plan, even though last year the purchase of Transjakarta buses faced problems due to damage and corrosion. "How could we withdraw it? We will go ahead," the Jakarta governor stressed.

On Tuesday, Jokowi admitted that there was a possible abuse in the procurement process of the Transjakarta Busway buses last year.

"There is an indication of a deviation. But I do not want to reach a conclusion before an investigation by the Governments Development Finance Comptroller (BPKB) is completed," Jokowi stated at the City Hall.

Therefore, he suggested that imported buses should be assembled at home, so they could be checked.

"We will continue our plans to import Transjakarta buses, but if it is possible we want the buses to be assembled in Indonesia," the Jakarta governor stated at City Hall on Thursday.

He explained that the assembling of imported buses would be carried out at home to avoid the repetition of previous Transjakarta bus imports, which were found damaged by corrosion in their engines.

"If we assemble them ourselves, we can check them directly to see their conditions, including whether or not they were still functioning well," he said.

The governor said that even though Jakarta once faced a problem when importing Transjakarta buses, the Jakarta government would continue its plan to buy Transjakarta buses, because the budget for the project had been included in the 2014 Regional Budget Plan.

Until now, the Jakarta governor claimed, he had not known the total losses suffered from damaged and corroded buses bought for the Transjakarta Busway fleet. "Lets wait to see the result of the BPKP auditing," the governor noted. The problem is still under the auditing of the Governments Development Finance Comptroller (BPKP).

A total of five Transjakarta two-section buses and 10 others for the Busway Integrated City Bus Service (BKTB) were found with corrosion. It was suspected that the causes of the corrosion were the use of second hand or reconditioned parts.

He said there was an indication of a deviation after an investigation, which found that a number of the buses components were damaged.

"I do not want to make any comments, in the first place. Neither do I want to conclude anything in a hurry. Therefore, I have asked the BPKP to conduct an audit again and wait until the issue is completely investigated," the governor remarked.

Jokowi, who is also a former mayor of Solo in Central Java, said he was ready to appear, if he was summoned by the Corruption Eradication Commission (KPK). "If I am summoned by the KPK, I am ready to meet it," he added.

Further, Jakarta Deputy Governor Basuki Tjahaja Purnama said his office will not pay for the purchase of hundreds of Ankai buses, which were imported from China.

"We have made a down payment of 20 percent. If the sole importer agent insists on asking for payment, we will not remain silent," he stressed.

In the meantime, the Jakarta Provincial Inspectorate Office said on Thursday that it has submitted a report on the results of the Transjakarta bus examinations to the Governments Development Finance Comptroller, or BPKP.

"The Inspectorate Office has submitted its report to the BPKP for further investigation," the Jakarta Provincial Inspectorate Office Head, Franky Mangatas Pandjaitan, said on Thursday.

He noted that, based upon its investigation, his office found indications of losses suffered by the state in connection with the importation of the corroded Transjakarta buses, yet, he added, he had no right to carry out further investigations.

"We are tasked only with carrying out examinations and reaching a conclusion. The party which has the right to decide how much the state has suffered is the BPKP. Yet, we admit there is a loss to the state in that case," noted Franky.

Franky also denied allegations by the Jakarta City Residents Forum (Fakta), which claimed that there was a mark-up in the purchase of the Transjakarta buses, amounting to Rp53 billion.

"Therefore, in our report which we have handed over to Jakarta Governor Jokowi, we did not mention a figure on the indication of a deviation," Franky remarked.

Transjakarta now has 524 buses traveling 10 routes, serving some 300,000 passengers a day. 

Regarding Jokowis plan to import buses for Jakarta, though he has said he is also willing for local industries to manufacture the buses, House of Representatives (DPR) Chairman Marzuki Alie last month expressed concern, saying the Jakarta city administrations policy to import Chinese buses went against its intention to strengthen the domestic industry.

"Regardless of whether the buses are damaged or secondhand, the policy is not favorable for the domestic industry. Neither is it in line with our objective to build and encourage the domestic industry," he noted last month.

Marzuki noted that the country has proven its ability to develop domestic industries. If the Jakarta city administration is willing to contribute towards the growth of the national economy, then they should not import buses.

The policy to import buses reflects the city administration having no intentions to assist in building the nation's economy, he emphasized.

"We have evaluated the fact that the buses built by the domestic coachwork industry can technically compete with similar ones produced in other countries," he claimed.

The domestically produced buses are widely used in Indonesia and abroad. "Why should we import buses? If we want to develop the domestic economy, then why should we import buses?" he asked.

Locally-made buses are much better than those imported by the Jakarta city government from China, he noted.

"We are able to manufacture better buses than China. So, I am deeply concerned about this policy," he stated

Source: ANTARA