Parking operators unaware of new law

Parking operators unaware of new law

Novan Iman Santosa, The Jakarta Post, Jakarta

Parking operators said Saturday they were not aware of a new city
bylaw which requires them to pay up to 20 percent of their total
income to the city administration.

The Jakarta City Council passed the bylaw last Thursday,
doubling the current tax rate. It is expected to earn the
administration Rp 24 billion (US$2.6 million) a year from 420
parking locations, comprising 124,470 individual parking spaces:
90,544 for cars and 35,926 for motorcycles.

The manager of PT Securindo Packatama Indonesia's Plaza
Senayan parking lot in Central Jakarta, Mahdi, said he was aware
of the negotiations but not the finalized tax rate.

"I do not know if they have reached any agreement to require
us to give the city administration 20 percent of our income.

"But I know that there were already several meetings with the
administration which involved our company and several business
associations," Mahdi told The Jakarta Post.

Similar comments were aired by Charles, the manager of the
company's parking lot at Plaza Indonesia in Central Jakarta.

"I don't know anything about the 20 percent tax. You should
contact our head office on Monday," he told the Post.

"I just take care of the day-to-day operations here."

Mahdi said there were 7,000 to 8,000 vehicles using the
parking lot daily during weekdays.

"The number is even higher on weekends. It can reach 11,000 to
12,000 vehicles."

He said the average number of vehicles parked at Plaza
Indonesia was between 4,000 to 5,000 cars.

Mahdi said that he did not know whether the company would
increase parking charges to compensate for the 20 percent tax. "I
haven't heard anything from my company's head office," he said.

Council spokesman Muhayat said that the City Parking Body
would monitor the new bylaw to prevent any parking operators from
raising charges.

Residents have long complained they do not get real security
when they park their cars in parking lots in the city, which are
mostly operated by PT Securindo Packatama under its brand name
Secure Parking.

The company led parking operators in ignoring a gubernatorial
decree, which stipulated a parking fee of Rp 1,000 per hour.
Following strong public complaints and warnings from the city
administration, the company, however, reduced its fees in
accordance with the decree in May 2000.

Muhayat said the 20 percent tax was set by city councillors
and officials.

The bylaw will be followed by another decree which will
function as a guidelines for its implementation.