Firm expects Rp 25.9b from parking sector

Firm expects Rp 25.9b from parking sector

JAKARTA (JP): The management of PT Ikabina Karya Sukses, a
private company, claims that their proposed prize-parking system
would contribute Rp 25.9 billion (US$11.77 million) to the city
administration every year if approved.

The company's vice president, M.B. Hutagalung, said on
Thursday that the system would benefit the administration
financially and at the same time help solve parking problems in
the city.

Hutagalung said his company hopes to collect a total of Rp
86.4 billion from parking tickets per year, about 30 percent of
which would go to the city administration, 18 percent to the
company, 18 percent to prizes, five percent to a sports fund,
four percent to the IDT program (the presidential aid program for
least developed villages) and the remaining 15 percent would be
allocated for operational costs and parking attendants.

"I'm sure the revenues collected from the parking sector would
increase and I assure you that this is not another scheme,"
Hutagalung said at a press conference on Thursday.

The new system has been controversial, with city councilors
and the Minister of Social Services Inten Soeweno saying that
this kind of system could be another type of SDSB, the now-banned
national lottery.

City authorities are considering bringing in the private
sector to manage parking facilities. The city's own agency, BP
Parkir, has failed to live up to expectations amidst allegations
that some of their funds have been misappropriated.

BP Parkir has repeatedly come up short because of "leaks" in
its financial management. The municipality set a Rp 14.6 billion
revenue target for parking fees in the 1994/95 fiscal year, which
ends on March 31. But in the nine months to December, BP Parkir
has only raised Rp 9 billion and is likely to fall short once
again. In 1993/94, BP Parkir managed to collect Rp 9 billion,
well below the Rp 11.6 billion target.

Each year, despite consistently falling short, the city has
expected a 20 percent increase in revenues from parking fees. In
1995/96 it has set the target at Rp 16.3 billion, for 1996/97 Rp
22.8 billion and 1997/98 Rp 29.1 billion.

However, Hutagalung did not reveal whether or not the company
itself would increase its annual target.

He explained that the parking coupons will be sold by official
agents, appointed by his company, and that every ticket would
contain a prize.

"Offering a prize is only way to encourage people to take the
parking ticket which is critical to revenues from the parking
sector," he said, adding that the prizes would range from candy
to household appliances and cars.

The current progressive hourly system, implemented by
gubernatorial decree, would need to be revised to make way for
the new system, to which Hutagalung simply replied, "the city
administration should be flexible by changing the decree." (yns)