Jakarta's parking stuck in first gear

Jakarta's parking stuck in first gear

The decades-old problem of parking mismanagement in Jakarta
remains unresolved while, for some companies, parking is becoming
an increasingly lucrative business. The Jakarta Post reporters K.
Basrie, Ivy Susanti, Imanuddin, Emmy Fitri, Riyadi and Yogita
Tahil Ramani and photographer Bayu Ismoyo look into the issue.

JAKARTA (JP): The consequences of poor parking management are
conspicuous across the capital: stationary vehicles litter narrow
alleys, sidewalks and numerous other forbidden locations.

In some places, the dearth of legal parking spaces has a
knock-on effect for the city's general traffic problems as parked
vehicles occupy half of many roads, triggering gridlock.

In terms of financial management, the city's Parking
Management Agency (BP Parkir), which operates and controls the
city's parking system, has long been sneered at as inefficient.
Critics attribute its low income to the notorious "leakages" by
corrupt officials at all levels.

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 these license holders.

A recent investigation by the Jakarta Legislative Council
found that 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.

Meanwhile, an annual report of the city's parking management
agency showed that it collected only Rp 14 billion of the
targeted Rp 25 billion in the 1997/1998 fiscal year that ended in
March.

The Council's investigation also revealed that the funds ended
up in the pockets of illegal parking attendants because of the
administration's inability to provide sufficient parking spaces.

Official statistics show there are at least 1.3 million
private vehicles in the city chasing the 85,770 authorized
parking spaces.

According to the statistics, at least 25 percent of the
vehicles are unable to find authorized spaces and are parked in
illegal on-street parking areas usually controlled by hoodlums.

However, the city's parking management agency is not the sole
party to blame for the mess.

Media reports have repeatedly alleged that some parking permit
holders failed to pass on the money they make funds to BP Parkir.

Tini Hadad, chairwoman of the Indonesian Consumers Foundation
(YLKI), told The Jakarta Post that leakages occurred from the
moment the money was collected from the drivers.

She blamed the leakages on the city administration's failure
to provide proper salaries for the parking attendants, who stand
at the front-line of the parking business.

"As far as I know, parking attendants do not get salaries from
the agency. Their jobs start immediately after they are given
their uniforms," she said.

It is believed that many attendants embezzle a significant
proportion of the money they collect.

"That's one of the reasons why leakages occur from the first
time the money changes hands," she noted.

Tini suggested that the city administration reorient its
parking management concept.

"The Jakarta Administration should start considering the
parking business as one of its sources of income while at the
same time part of the government's services to the people.

"The Jakarta Parking Agency should first improve the skills
and professionalism of its employees and its service to the
public before demanding high fees from the people," she said.

Nevertheless some city administration officials have made lots
of effort to meet people's demand for a comfortable and secure
parking system.

For people seeking comfort, numerous hotels, buildings and
offices provide valet parking services, while for those seeking
security and safety for their vehicles, including their
belongings inside, there is Secure Parking operated by an
international company.

The city currently sets car parking fees at Rp 500 for the
first hour. The hourly rate thereafter is set by the parking
management agency under the governor's approval.

To improve the service, Tini suggested that parking operators
including private ones should accommodate tenants' claims of
damages or stolen vehicles.

"People have often complained about damage to or loss of their
vehicles parked in certain parking lots," she said. "But their
complaints go unheeded, let alone getting the parking operator to
provide compensation."

Tini offered a solution: parking fees exceeding Rp 2,000
should include insurance cover for the ticket holder.

In response to calls for security and safety, dozens of
private companies have offered a joint venture parking management
system in conjunction with the municipality.

The proposals for the privatization of the parking
administration include developing a computerized ticketing system
to prevent manipulation and providing reasonable wages for
parking attendants so they won't resort to corruption to survive.

The deal might also include compensation to cover the cost of
stolen or damaged vehicles at parking lots if owners reported the
incident within 48 hours. However, personal belongings and car
accessories, like stereos, would not be covered.

A proposal by the parking agency to have a city regulation
allowing them to collect parking fees from private companies has
received strong opposition from the private sector.

Stefanus Ridwan, general manager of PT Pakuwon Subentra
Anggraini which manages the Plaza Blok M shopping center in South
Jakarta, said the idea had been strongly rejected by many
businesspeople, including local associations of real estate
developers, shopping center management firms, hoteliers,
restaurant owners, property owners and retailers.

"We no longer want to deal with them following the enactment
of Law No.18/1997 which ended the city administration's right to
collect certain taxes and levies including parking fees,"
Stefanus, an executive of the Indonesian Shopping Center
Management Association, said.

"It's better for us to manage the parking ourselves and ask
another company, such as Secure Parking, to handle it," he added.

In the past, the city's agency collected at least 25 percent
in retribution fees from the parking site owners, who also have
to pay a 10 percent tax to the government, Stefanus said.

"It's okay if the agency wants to offer its services but
please don't force us to use it. Let's make the choice. There's
no place for monopolies anymore in this country," Stefanus said.
(team)