Partners needed to help manage on-street parking

JAKARTA (JP): Admitting it was unable to manage the city's parking affairs alone, the city administration said on Tuesday it needed partners to help handle on-street parking in the capital.

The administrative assistant to the city secretary, Makmun Amin, said during a hearing on the privatization of parking management the city administration needed to maintain its involvement in managing parking affairs, because on-street parking was a public service.

"It is a fact that the management of the city parking agency is terrible and we need help to stop the continuing losses of the agency. What we need are partners to help us in parking management and operations.

"It's the responsibility of the city administration to manage on-street parking in the capital as stipulated in City Bylaw No. 5/1999. But there is the possibility of cooperation with private companies," Makmun said.

He was responding to the City Council's demand that parking management be handed over to private firms, because the city parking agency had over the years proven to be a money loser.

In the 2000 city budget, the city parking agency received some Rp 14.6 billion (US$1.62 million) from the administration because it was unable to meet its Rp 16 billion revenue target for the year.

"What we have proposed to the City Council is the establishment of a joint operation with private parking operators. We will establish the technical aspects of the matter and open a joint account so we can control each other," Makmun said.

He said that so far five private parking firms had met all the requirements to join the next stage of the process to select partners for the city parking agency.

The five are PT Sumber Batu, PT Adiwira Sembada, PT Shibisa Jaya Sakti, PT Rodial Indonesia and PT Mega Nusantara Masagena.

The Council's deputy speaker, Djafar Badjeber from the United Development Party (PPP) faction, urged the city administration during Tuesday's hearing to allow private parking operators to take over on-street parking.

"For years, officials have siphoned off money from the agency, which is why it has continued to suffer financial losses.

"I have proven the agency's inability (to manage parking), so it is better for it to let private operators run the business," Djafar said.

The City Council and the administration failed to reach an agreement during the hearing. The Council will hold further internal discussions before issuing a recommendation on the privatization of parking. (dja)