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Partners needed to help manage on-street parking

| Source: JP

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)

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