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)