Indonesian Political, Business & Finance News

Operators to double parking fees

| Source: JP
Operators to double parking fees

Damar Harsanto, The Jakarta Post, Jakarta

On the back of the fuel price increases, motorists will soon have
to pay double the current fees for off-street parking.

The operators of parking businesses here have started seeking
approval for the increase, which would be introduced after the
Idul Fitri holiday.

If the proposal is approved, car owners will have to fork out
Rp 4,000 per hour for parking. The current fee is Rp 2,000.

The fee for motorcycles will remain at Rp 1,000.

"We have to weather the bite of the increase in fuel prices,
which has seen our operating costs surge," said deputy chairman
of the Communication Forum for Parking Operators (FKPPS) Donny
Biantara.

Donny told The Jakarta Post that the rise was necessary to
anticipate the expected increase in the provincial minimum wage
starting in January next year.

Currently, a tripartite council comprising representatives of
the labor unions, employers and City Manpower Agency is at the
negotiating table over the new minimum wage for 2006.

According to Donny, there are over 40,000 parking attendants
working at a total of 400 locations at malls, shopping centers
and office buildings across the capital.

The Association of Indonesian Shopping Center Operators
(APPBI), the Association of Indonesian Retailers (Aperindo) and
the Association of Indonesian Hoteliers and Restaurant Owners
(PHRI) are among the members of the communication forum.

"We have scheduled to finalize the proposed increase by
discussing it with other forum members after Idul Fitri, before
we go on with submitting the request officially to the
administration," he said.

The largest player in the industry, PT Securindo Packatama
Indonesia, better known as Secure Parking urged the
administration to give more leeway for the parking operators to
charge the motorists in line with the services they provide.

"We have received complaints, for instance, from luxury car
owners, who ask for special parking spaces for their cars. They
also express willingness to pay higher fees for more space. The
owners give tips to the parking attendants in order to get more
space, which is simply against the regulations," said Secure
Parking's general manager of communications, Tony Tjuatja.

"It would be better if the administration allowed parking
operators to impose parking fees in accordance with market
prices," he added.

Secure Parking employs more than 9,000 parking attendants at
about 130 parking locations across the capital.

Although parking operators are yet to file an official
request, Governor Sutiyoso hinted the go ahead would be given to
the planned hike.

"We need to raise parking fees in order to ease traffic jams
in the city center,

"Most big cities in the world also impose relatively higher
parking fees to control the number of vehicles operating in the
city center," he said.

However, many residents have opposed the plan, saying the hike
would be another blow to their budgets.

They have also complained about the poor services provided by
off-street parking operators amid rampant cases of auto theft.
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