Urban public transport in Indonesia is characterised by the highly regulated market, as both vehicle quantity and fares are regulated and excessive number of paratransit vehicles almost in every route and in every city. This condition results in low patronage per vehicle, generating low revenue, which tends to drive fares up, sacrificing users of the services. An investigation was made on mikrolets operating in Bandar Lampung, a provincial capital city in western Indonesia, where a number of surveys were conducted during the months of August-October 1999 including driver and owner interviews; service frequencies and passenger counts to assess the revenues and costs involved in its operation. Results of the analysis suggest that: a) at the current fare level the generated revenue is not sufficient to cover the costs, b) under the existing conditions with excessive number of vehicles the break- even fare is much higher than the current fare and c) under the current fare level with reduced number of vehicles, without sacrificing the service frequencies, mikrolets operate with profit. These findings lead to a recommendation to the authorities in charge in public transport management that the setting of the ceiling and fares should be made more carefully for the benefit of all (operators and users).