Parking firms required to pay 20% of revenue to city administration<\/p>\n
Ahmad Junaidi, The Jakarta Post, Jakarta<\/p>\n
The effort to increase city revenue moved forward on Thursday
\nwhen the City Council approved a bylaw requiring parking
\nmanagement firms to pay 20 percent of their total income to the
\ncity administration.<\/p>\n
\"But the city administration should not think only of the
\npossible revenue, but also how to improve parking services,\"
\nIndonesian Democratic Party of Struggle (PDI Perjuangan) faction
\nspokesman Tarmidi Edy Suwarno said during the council's plenary
\nsession.<\/p>\n
Tarmidi suggested the administration provide insurance for
\nvehicle owners as one way to improve service.<\/p>\n
He did not provide further details but he may have been
\nthinking of the councillors' earlier visit to Surabaya, where
\nparking tickets come with insurance.<\/p>\n
Very few parking operators in the city provide a security
\nguarantee for their customers, and they refuse to take
\nresponsibility for the damage or loss of vehicles.<\/p>\n
The city categorizes parking as either on-street or off-
\nstreet, which is on private property and requires all vehicle
\nowners to pay a parking fee.<\/p>\n
With the approval of the bylaw, the city administration is
\nexpecting to receive Rp 24 billion (US$2.6 million) per year from
\nthe firms that manage off-street parking and parking lots in
\nbuildings.<\/p>\n
The money will be collected from 420 locations, comprising
\n124,470 parking spaces: 90,544 parking spaces for cars and 35,926
\nfor motorcycles.<\/p>\n
The current decree on parking requires car owners to pay Rp
\n1,000 for the first two hours and an additional Rp 1,000 for
\nevery additional hour, while motorcycles owners pay Rp 500.<\/p>\n
The city has, in the past, had difficulty collecting taxes
\nfrom parking management companies, which are required to pay some
\n25 percent of their parking revenue to the city, as stipulated in
\na gubernatorial decree. However, these companies regard the
\ndecree as a non-binding regulation.<\/p>\n
The city had hoped to collect Rp 3.4 billion from parking
\nmanagement companies this year, but has only managed to collect
\nRp 1.1 billion.<\/p>\n
The companies refuse to pay because of what they say is the
\nabsence of a binding regulation, and also because they claim they
\nhave already paid 10 percent income tax to the central
\ngovernment.<\/p>\n
On-street is managed by the City Parking Body (BP Parkir),
\nwhich contributed Rp 7 billion to the city's coffers this year of
\na targeted Rp 28 billion.<\/p>\n
The dismal performance of BP Parkir is particularly
\ndisappointing to the city because it is a heavily subsidized
\ncompany.<\/p>\n
\"We suggest the administration liquidate BP Parkir for its
\npoor performance,\" United Development Party (PPP) faction
\nspokesman Ali Imran Hussein said during the council's plenary
\nsession.<\/p>",
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