JAKARTA, INDONESIA - INDONESIAN public transport operators are preparing to raise fares in anticipation of a government hike in the price of fuel.

'We plan to submit a demand for a fare increase to the government soon after a fuel price increase is announced,' said Jakarta Public Transport Association secretary-general T.R. Panjaitan.

The government said this week that it planned to cut fuel subsidies, which could result in a fuel price hike of up to 30 per cent. It has not yet set a date for the price rise.

Mr Panjaitan said this could have a multiplier effect on the cost of spare parts, lubricants and other items for transport fleets.

'We are currently preparing the fare increase percentage based on various scenarios. If fuel prices are increased by 30 per cent, our fares would be raised by about 20 per cent,' he said. --AFP