Government: Public to be spared fee hike

JAKARTA (JP): The city administration announced on Tuesday a plan to increase the fees of 19 business-related items beginning next Monday after a thorough examination of possible consequences.

"The fee hikes will only affect a relatively small group of residents and mean a relatively small amount of money," the assistant to the secretary on administration affairs, Ma'mun Amin, told reporters at a media conference at City Hall.

"The hikes will include items in, among other things, the industrial, forestry, agriculture and tourism sectors," he said.

The planned hike was put in the pipeline after Governor Sutiyoso issued a ruling on March 29 that ordered a delay on the hike of all city fees, except parking fees, which were increased on March 23.

The ruling was issued with consideration for city residents who were facing a hike in electricity and fuel rates on April 1. However, the government decided to maintain the current electricity rate and postpone the fuel hike until further notice.

Ma'mun said the delay had caused a substantial loss for city revenue, reaching billions of rupiah.

He cited that an admission ticket to Ragunan Zoo in South Jakarta would be hiked from Rp 1,000 to Rp 2,000, while admission to the top of the National Monument (Monas) in Central Jakarta would jump from Rp 3,000 to Rp 5,000.

The city administration has targeted more than Rp 31.77 billion from the 19 fees in the 2000 city budget. A delay of 16 days has caused a loss of more than Rp 1.32 billion.

"And if we hike the fees on May 1, the loss will reach more than Rp 2.47 billion," said Ma'mun.

The city administration categorizes those fees which are paid before or after receiving services from city agencies. The hiked fees were stipulated in City Bylaw No.3/1999 on city fees.

The city administration expects the fees to add more than Rp 92.46 billion (US$12.32 million) to the 2000 city budget.

Ma'mun said, however, that the city administration had decided to delay the hike on 12 other fees, pending the completion of another feasibility study on residents' ability to afford the increases.

"We'll make another announcement before we implement the hikes," he said.

The suspended hikes on fees include those in, among others, the health, transportation, sport and informal business sectors, which are expected to add more than Rp 60.69 billion to the city's coffers.

"The city will suffer a loss of more than Rp 7.3 billion if we hike the 12 fees on May 1. But that is unlikely to be done on that day," said Ma'mun.

"We hope the delay will help lessen the residents' burden during this time of hardship. But we'll hike the fees as soon as the situation improves," he added. (nvn)