Billboard controversy a sign of administration's weakness
Billboard controversy a sign of administration's weakness
JAKARTA (JP): The recent controversial erection and subsequent
removal of a Pepsodent billboard at a major thoroughfare in South
Jakarta has, at least, highlighted the weaknesses of the city
administration in regulating the mushrooming number of such giant
ads in and around the capital.
It's crystal clear to those in the advertising business that
the cost of erecting a billboard here is not as stated in the
official list of charges as advertisers are required to fork out
extra money, in other words bribes, to various officials to
secure the permits to erect their advertisements.
The Pepsodent saga that made the headlines in many local
newspapers here also revealed the alleged abuse of office
committed by Ahmadin Ahmad, head of the City Planning Agency, who
-- according to an executive of the advertising firm that erected
the toothpaste billboard -- had received financial "compensation"
from the company in return for Ahmadin's recommendation that the
project be allowed.
Ahmadin, shortly after returning from an overseas trip, denied
the allegation and, instead, vowed to bring the firm's executive
to court for slander.
So, how could such a ridiculous situation arise in the
nation's capital?
According to Ahmadin, he signed the recommendation as he
thought that the site on Jl. Sisingamangaraja was not off-limits
to billboards, as it later turned out to be, because there was
already a giant billboard and two electronic billboards erected
right across the busy street.
Moreover, he added, his recommendation was not a permit for
the firm. The permit, he said, was issued by the City Revenue
Agency.
Officials from the agency eventually took down the 10 meters
by 20 meters billboard on Monday.
As usual, the government officials involved -- after denying
any wrongdoing on their parts -- hastily vowed to make
significant corrections regarding "lack of transparency" and the
"improper handling" of the matter.
During an interview on Friday, the City Revenue Agency chief
Deden Supriyadi admitted that although his office is at the tip
of the pyramid of responsibility in the billboard matter, he
personally didn't know the precise places in the capital where it
was prohibited to erect billboards.
"All the data are kept by the City Planning Agency," he said.
"We therefore cannot say with certainty which billboards have
been erected in prohibited places and which of them have violated
the tax and height regulations," Deden explained.
He admitted that his office had just started to identify the
problem and therefore badly needed the support of security
officers to help them in imposing strict punishments against any
offending advertising companies.
According to the City Revenue Agency, Jakarta is currently
home to 27,171 billboards with a minimum size of 24 square
meters.
Most of the giant ads are erected on privately-owned
properties. Only 30 of them are sited at city-owned buildings and
on city land, mostly at roadsides.
Billboards of a size of more that 24 square meters should be
registered with both the city planning and revenue agencies,
while those measuring between 24 square meters and six square
meters in size should be registered with the local mayoralty's
planning subagency.
Those of smaller size are registered with the district
administration offices concerned.
According to City Bylaw No. 8/1998, which will only become
effective on Monday in line with the issuance of Gubernatorial
Decree No. 74/2000 on the bylaw's implementation details, tax is
required to be paid on every billboard as well as a levy to the
City Revenue Agency. The tax, for instance, is set at 25 percent
of the "rental fee".
The Pepsodent billboard, which was still governed by the old
regulation and was initially set to remain in place for a year,
resulted in Rp 110 million in tax, a Rp 20 million levy, and
another Rp 1.4 million in administrative fees being paid by the
advertiser.
Under the old regulation, the tax was set at between Rp 4,000
and Rp 6,000 per square meter per day.
Under the new bylaw, details of which will be made public on
Monday, the cost will depend on the location of the billboard.
The price of the rental fee for billboards on the city's main
thoroughfare of Jl. Sudirman, for example, will be much more
expensive compared to those erected on Jl. Prapanca in the Kemang
area.
The final permit to erect a billboard will be issued by the
City Planning Agency.
According to Deden, the current 38 sites on city-owned
property would be increased to 163 sites as provided for in the
new Gubernatorial Decree.
The new decree will also regulate billboards of a minimum size
of 24 square meters that are to be sited on city-owned property.
Another gubernatorial decree will also be issued on Monday
which will restrict the erection of billboards on city-owned
properties other than the 163 sites stipulated, Deden said.
Under the new regulation, all of the city-owned sites will be
put out to competitive bidding, and advertising companies that
intend to participate in the bidding will have to deposit a bond.
However, the regulation will also allow bidders to obtain as
many sites as they want.
Contacted separately on Friday, Ahmadin said 34 of the
existing 38 spots would be available for inclusion in the
upcoming bidding as the relevant permits were soon to expire.
Deden said: "To reduce the presence of brokers, the bidding
will be open not just to advertising companies but also to firms
that want to advertise their own products."
His office would also welcome inquiries from the public
concerning further information on the billboard business. Such
inquiries should be addressed to the City Revenue Agency office
at Jl. Kebon Sirih No. 22, Central Jakarta.
"We will also implement a one-stop policy, meaning that the
successful bidders will receive a package of permits and
recommendations from my office, so that they won't have to go to
other agencies," Deden said.
"The full procedure will be completed in less than 31 days,"
he guaranteed. (dja)