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)