Administration's planned levy increase hailed

JAKARTA (JP): While many Jakartans remain badly affected by the escalating price of goods and services, the City Council on Tuesday strongly supported the administration's proposal to raise 23 levies on public services and business activities.

The councilors agreed to back an administration proposal to hike levies from between 27 percent and 600 percent during a plenary session with administration officials, including Governor Sutiyoso.

Councilor Ali Wongso Sinaga of Commission D for development affairs said the levy hike was desperately needed by the administration to help make up a shortfall in city revenue.

"Otherwise, the administration will not be able to run or manage the city anymore.

The increase is essential ... and it has been agreed upon by all city councilors," Ali said after the meeting.

He said the proposal -- after being approved by city councilors -- would be submitted to the Ministry of Home Affairs for further consideration.

"Once the ministry has studied the proposal thoroughly, the proposal will be sent to Governor Sutiyoso to legalize the raise through a new city bylaw.

The raise is expected to take effect six months from now," Ali said.

Planned levy hikes in the public services would affect health services, garbage disposal/sanitation services, ID card fees, fees for birth/marriage/death certificates, public burial services, motor vehicle tests, tests for fire extinguishing devices, printing of maps and street parking fees.

The rise in levies for business activities would cover fees collected from grocery markets and shops, bus terminals, motels/villas, toilet cleaning services, slaughter houses, recreation/sport centers and parking lots.

The proposal also reveals a significant hike in the collection of fees for special permits, such as those issued for land use and buildings.

The most noteworthy hike in the proposal was the six-fold increase in the levy on garbage disposal services, from Rp 250 (three U.S. cents) per month per residence to Rp 1,500.

Unsurprisingly, the plan was strongly opposed by most Jakartans.

"It's ridiculous," commented shoe shop attendant Sonia at Mangga Dua shopping complex in West Jakarta.

She said she paid Rp 7,500 each month instead of the official rate of Rp 250.

"What happens later when the administration increases the monthly fee to Rp 1,500 per month?" Sonia said.

Irma, a housewife from Kebayoran Baru, South Jakarta, warned the authorities that residents in her neighborhood would stage protests should Sutiyoso approve the gigantic hike for the garbage disposal service.

"It's crazy," Irma said, adding that she currently paid Rp 13,000 for the service.

The council also revealed plans to raise levies collected from the city's estimated 8,500 "official" street vendors, from between Rp 500 and Rp 1,000 per trader per day to between Rp 800 and Rp 1,500.

After the meeting Governor Sutiyoso said he would ask the city Public Order office to "throw all 'unofficial' vendors out of the business" unless they could soon register themselves.

"It's because of them that business at branches of the city- owned market management firm PD Pasar Jaya in Pasar Minggu, South Jakarta, and Cengkareng, West Jakarta has been very slow," he said.

According to Gubernatorial Decree No 1362/1997, there are 8,468 official vendors located in the official 9,335 vendor sites across the capital.

The number of unofficial street vendors is estimated at over 20,000 people.

The city administration also proposed to double fees on ID cards processing to Rp 2,000 each.

The administration was earlier urged to abolish the levy altogether.

Sutiyoso has in the past argued that in addition to increasing city revenue, a fee hike on ID card processing would discourage newcomers, especially from villages, applying for the cards.

The proposal also calls on parking fees to be hiked from the current official tariff of Rp 300 per car to Rp 2,000.

City council deputy speaker Ade Suprijatna said discussion on the subject was "very tough" before agreement was reached by all councilors.

"The administration insists that they badly need money," he said.(ylt)