Operators up parking fees without approval

Zakki Hakim, The Jakarta Post, Jakarta

A number of private parking operators in Jakarta increased their parking rates at some sites by up to 100 percent on Monday, without the approval of either the city administration or council.

Councillors and city officials said on Tuesday that the increase was illegal because it had not been officially approved.

Jonner Napitupulu, the general manager of building operations at Plaza Indonesia, told The Jakarta Post that the decision to increase rates was taken because the city imposed a 20 percent tax on off-street parking, effective as of Monday.

He said that in recent years the management had to reduce the parking operations deficit, which amounted to Rp 1 billion (approximately US$120,500) each year, out of its own operations budget.

The deficit, he said, occurred due to utility price hikes over the years, and because the city administration had fixed the rates at no more than Rp 1,000 per hour.

"To take the 20 percent tax out of the Rp 1,000 is out of the question, therefore we have no choice but to increase the rates," he said, adding the increase was a joint decision between the management and the building's parking operator, PT Secure Parking.

According to Bylaw No.6/2002, the tax should be paid by motorists, and operators must therefore charge motorists an extra Rp 200, he said.

"Charging motorists Rp 1,200 per hour will slow down our service because we have to provide small change, which definitely will cause congestion at our exit gateway. Therefore, we are rounding off the figures to Rp 1,500 for the sake of practicality," he said.

Most motorists complained about the increases, saying the rates were too high and not on a par with the service given.

"I have to pay more, but it is still difficult to find a parking space and there is no guarantee that something will not happen to my car," said Felicia, an executive at a multinational company, as she parked her car at Plaza Indonesia on Monday evening.

Indonesian Consumers Foundation (YLKI) spokesman Daryatmo told the Post that increasing the parking rates should be followed by providing a better service to consumers.

The administration must make it official that operators should be responsible for anything that happens to a car in their area, he said.