Managing parking lots
Aside from our doubts about the way the Jakarta administration manages parking facilities and the billions of rupiah it collects in revenue, there is a strong case for the increase of parking fees. Finding a parking space in most busy office and shopping complexes during the day has become a frustrating, if not impossible, chore for most motorists. There are too many cars battling for too few spots and the situation is not getting any better. The number of cars is increasing more rapidly than the number of additional parking spaces. With every inch of space at premium prices, a logical step -- but not the only step -- in untangling this jam is to increase parking fees.
It is with this in mind that the administration submitted its proposal to the city's Legislative Council this week requesting an increase in parking fees, from a current range of Rp 500 to Rp 1,000, to a new range of Rp 1,000 to Rp 5,000. The administration has given several reasons for what effectively represents a hefty 100 to 500 percent increase. The extra revenue would be used to build additional parking facilities in the city. The steep increase would hopefully discourage motorists from the busy districts, thereby easing congestion.
But given the operations of BP Parkir, the city's parking management agency, there are strong doubts about the effectiveness and efficiency of Jakarta's current parking policy, and therefore questions abound whether an increase in parking fees would achieve the stated objectives.
BP Parkir's credibility has already been depleted because of its inability to control parking attendants, whether they are on the payroll or run lucrative parking turfs not necessarily under their supervision. The agency in 1995/96 fiscal year collected Rp 11 billion from parking fees, a Rp 5 billion shortfall from its target. In 1994/95 it collected Rp 11.5 billion, Rp 3.1 billion short of its target. Most experts believe parking attendants collected far more than they handed over to the agency, and that the shortfall was caused by leaks. Councilor Helmy AR Syihab recently estimated that the agency could easily collect Rp 43 billion every year from 400,000 cars parked once a day, with fees of Rp 300 each.
Instead of simply giving in to the administration's request to increase fees, the Jakarta Legislative Council should thoroughly review the city's overall parking management. Increasing fees without any assurance of better management from BP Parkir would lead to more leaks, more congestion and ultimately more frustration for motorists.
Parking management in Jakarta and other metropolis such as New York and London, requires professionalism. BP Parkir, which has held a virtual monopoly in parking management, is far from being professional. A dose of competition, through privatization, is one answer. Another is joint ventures with private companies. Controlling parking fees, in spite of its noble intentions, may have backfired as can be seen by the tiny spaces allocated for parking lots by many office and shopping complex owners. If they were allowed to charge their own fees, they would probably have allotted more spaces in line with market demands. And if fees were right, parking lots could actually become a lucrative business for innovative entrepreneurs while at the same time provide a valuable service to society.
As the Legislative Council discusses the administration's proposal to increase parking fees, it should take a more holistic approach to the problem. Only then, can we come up with a real solution to Jakarta's parking woes.