Thursday, August 27, 2009

12.74-18.56% rise in toll road tariff proposed

Original source: Reuters

Indonesia's state toll road agency (BPJT) has proposed a 12.74-18.56 percent increase in toll road tariffs with effect from September 4, chairman Nurdin Manurung said on Wednesday.

Under an agreement with the government, toll road operators are allowed to raise tariffs every two years to ensure a healthy profit margin and adjust for inflation, but any increase must still be approved by parliament.

However, analysts said the rise could even add to inflationary pressures in September when many Indonesians celebrate the end of the fasting month. Millions of Indonesians return to their home towns while foodstuffs are delivered across the country on the toll roads.