City govt loses RP 4.8 billion in parking fees

City govt loses RP 4.8 billion in parking fees

JAKARTA (JP): The city loses at least Rp 4.8 billion
(US$640,000) in potential parking revenue each month due to the
critical shortage of authorized parking areas, a city councilor
said yesterday.

Ali Wongso HS, chief of City Council's Commission D for
development, said the funds ended up in the pockets of illegal
parking attendants because of the administration's inability to
provide sufficient parking spaces.

"Our official parking attendants can only collect parking fees
from vehicles parked in authorized parking spaces on or off the
street, which are far less in number than vehicles parked in
illegal parking lots," he said.

Official statistics shows there are only 85,770 authorized
parking spaces available to accommodate at least 1.3 million
private vehicles in the city.

Ali estimated that at least 25 percent of the 1.2 million
vehicles unable to find authorized spaces -- around 325,000 --
parked in illegal on-street parking areas usually controlled by
local hoodlums.

"Yet, we cannot blame people for parking their cars at
unauthorized places and paying Rp 500 to the hoodlums. They would
not do that if there were enough legal parking spaces available,"
he said.

Ali said the city's parking management agency, BP Parkir, had
collected only Rp 14 billion of the targeted Rp 25 billion in the
1997/1998 fiscal year that ended last month.

It is projected to collect Rp 12.4 billion from the parking
lots for the fiscal 1998/1999.

The highest contributors to the city's parking revenue are
private sources, including hotels and office buildings licensed
to organize parking services in and around their premises.

Some 71,200 of the authorized 85,770 parking spaces are
currently controlled by those license holders.

Parties with licenses to organize public parking lots and
services are required to pay 25 percent of their total parking
revenue to the administration.

Media reports have alleged that some permit holders failed to
confer funds to the administration.

Ali said the administration must improve its parking system by
adding more spaces, which would increase its revenue.

"It could establish more parking spaces or take over the
handling of existing illegal on-street parking spaces from the
hoodlums," he said.

Ali said the dearth of legal parking spaces was also a factor
in the city's acute traffic problems.

Traffic snarls are particularly common on busy streets where
excessive numbers of vehicles are allowed to park, he said.

The administration should consider constructing multistory
parking lots to solve the problem, he said, and could cooperate
with the private sector in their development if funding was a
problem.

But he cautioned that the handling of revenues should be under
the city.

"The management of parking lots must be directly controlled by
the governor in order to assure that the revenue derived from the
service will go to the state coffers," he said. (cst)