Private parking lot operators balk at new rates

JAKARTA (JP): A lawyer for the Communication Forum for Private Parking Operators (FKPPS) insisted on Tuesday the group would sue the city if it held to a plan to seal private parking lots which did not comply with a new rate structure.

"We'll file a lawsuit against the city administration at the Jakarta State Administrative Court if it insists on closing down the parking lots," the forum's lawyer, Purbadi Hardjoprajitno, said in a media conference.

The city has warned operators to have the new fees in place by May 22.

The conference was attended by representatives of several property and business associations which are part of the forum. They include the Indonesian Association of Shopping Complex Management (APPBI), the Indonesian Hotel Association (PHRI) and the Association of Indonesian Retailers (Aprindo).

Purbadi said he was optimistic the group would win a legal battle, terming as "unlawful" City Bylaw No. 5/1999 on parking.

"The city bylaw contravenes other government regulations, including Law No. 18/1997 on taxes and Law No. 20/1997 on provincial/mayoralty retribution," he said.

The city bylaw obliges parking operators of private sites to set parking rates at Rp 1,000 for the first hour and Rp 1,000 for each following hour.

Stefanus of APBBI also claimed the bylaw violated existing laws, which he said stipulated the administration should not "interfere" in the management of private parking lots.

"Article 3 of Law No. 20/1997 stipulates that the administration manages parking lots which are owned and operated by the administration, but not the ones run by private parking operators."

Purbadi also opposed the government's bid to seek compensation from the operators through the bylaw. The amount of about 30 percent to 35 percent will be obtained from the operators' monthly revenue.

"It is against Law No. 20/1997 since the parking lots are privately owned by the parking operators. The administration doesn't have the right to take fees from the parking operators."

APBBI chief Sohirin said the payment would be burdensome to the parking lot operators.

"We even sometimes subsidize the operational expenditures of the parking lots," he said.

Sutiyoso made an unannounced visit to several parking lots in the city on Monday to check whether the private parking operators were complying with the bylaw.

He found many were operating in violation of the bylaw, which came into effect last September.

The administration originally set a June 1 deadline for companies to bring their operations into line with the bylaw. However, it brought it forward on Monday to May 22.

Head of the city parking agency Yani Mulyadi said on Monday the administration would seal off private parking lots beginning on May 22 if their parking fees were not in accordance with the bylaw.

Many private parking operators in the city have higher rates than those stipulated in the bylaw. (asa)